Bancor Fee Structure

I am super bullish on Bancor and am intending to re-stake for the long term. Most of the focus at this time is on LM Rewards, since I am thinking longer term future of the platform there is a few things about the way the fees work that are inconvenient to re-staking. Considering the community is looking for ways to cut down on gas expenses, this problem has come into my view.

Currently, if you stake BNT on the platform, your fees collect inside of the staked position. In order to re-stake them, I have to withdrawal the fees and then re-stake them, creating a new staked position where fees will be collected separately. 2 transactions.

If myself, as a LP, wants to re-stake my way to a full time income and I want to re-stake every 2-3 months, you can see how quickly I will put myself into a conundrum. After 3 years of re-staking I will now have, lets say 9 positions, that I have to interact with twice to re-stake the fees I am collecting. 18 transactions, every 2-3 months. This problem only gets worse with time.

Isn’t there a way that the fees can be collected similar to how the rewards are collected? If not, this problem should seriously be put on the to-do list.

If I am misunderstanding the way things work in anyway, please feel free to delete this post. Thanks.

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Rewards can be automatically restaked; you will be given this option when you go to withdraw your rewards.


Might be good to look at Restaking Fees from Protected Pools After Full Impermanent Loss Coverage which has a similar question.

@tenzent mentioned the following there:

Bancor lists APR instead of APY so that leads me to believe that this is in actuality already happening since APR is a compounding version of APY essentially.


I think you might have misunderstood how pool tokens operate. The fees are permanently associated with your position, and so they are effectively auto-compounding already; withdrawing an re-staking does nothing to improve your position in the pool. Your pool token (which is staked in the insurance contract) represents a share of the total pool value. Withdrawing and re-staking will only change your initial stake condition, however, the number of pool tokens you have will not change.

As an aside here, the amount of vBNT you have actually will change. This is probably not as significant a priority for optimization, but something we could think more about.


Thank you. I just became a partner and invested. You are truly a unique community