Bancor just published a blog post explaining that impermanent loss protection is paused due to market conditions: [
IL protection is the primary reason people use Bancor so this update is very surprising. The change affects all deposits:
>Withdrawals performed during this unstable period will not be eligible for IL protection.
According to the blog post Bancor plant to re-enable IL protection in the future:
>The temporary measure to pause IL protection should give the protocol some room to breathe and recover. While we wait for markets to stabilize, we are working to get IL protection reactivated as soon as possible.
It sounds like the Bancor DAO hasn’t voted on the decision yet, but the Bancor team already annouced that IL protection is paused on their blog and [on twitter](
Without IL protection Bancor exposes all deposited tokens to BNT price fluctuations, similar to token-BNT pairs on uniswap v2.