Bancor launches new DEX protocol boasting increased profitability and MEV-resistance

Quick Take

  • Bancor is launching a new automated DEX that claims to increase profitability.
  • It also claims Carbon is MEV-resistant.

Bancor, a decentralized ecosystem centered around on-chain trading and liquidity, launched an on-chain protocol that aims to make automated trading on decentralized exchanges easier and more profitable.

Called Carbon, the new tool lets users perform automated trading strategies via custom on-chain limit and range orders, Bancor said in a statement. Because they take place on-chain, orders are irreversible once executed. However, they can be adjusted on-chain.

Bancor also claims Carbon is "resistant to MEV [maximal extractable value] sandwich attacks." Sandwich attacks are when a bot identifies a pending user transaction and submits a transaction with a higher gas price to buy or sell the same cryptocurrency just before the user's transaction, causing a price change. The bot then executes another quick transaction to buy or sell the cryptocurrency — effectively taking advantage of the change.

Bancor's Carbon vs. Uniswap V3

Juxtaposed against Uniswap V3 — the latest and most-efficient iteration of the leading decentralized exchange — Carbon allows users to create a single concentrated liquidity position that buys and sells exclusively in specific price ranges.

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