It looks like Bancor uses what they term a Liquidity Protection Contract. Read more here:
https://docs.bancor.network/developer-quick-start/adding-single-side-liquidity
And for developers, Bancor has a guide on how they implement single sided liquidity:
https://docs.bancor.network/developer-quick-start/adding-single-side-liquidity
I see. Bancor protocol will even go so far as to mint new BNT to cover the IL as long as the LP stays in the pool long enough. Thanks for the links
Sure thing Josh. There may be other avenues to explore. Bancor is just the first one that came to mind. Open source code and it’s nice they offer a dev guide. I’ll keep an eye out. Perhaps another keen Fox knows of some other examples.
I don’t have a problem with the Bancor implementation. Just couldn’t understand the mechanics, and now I do. And I get your point that we could explore other options. One-sided liquidity providing does seem useful.
Now that I understand it better, I support this more now than I did previously.
I can chat with the bancor team pretty easily if we go down this route. Happy to create a thread if and when the time is right. Keep me posted.
thanks dude! we actually have a call with Bancor in 20 minutes 1f642 will let you guys know how it goes
Just had a great call with , , and Steven from the Bancor team. We’re moving forward with a Bancor liquidity mining proposal and planning to propose Bancor-sponsored liquidity mining rewards in exchange for a FOX airdrop to their community 
will share more details soon. thanks for proposing this !!
This is amazing! Thank you guys for the support and building this out!
awesome idea. I hope this happens
Here’s a draft template for the proposal we would need to make to Bancor to have FOX whitelisted for impermanent loss protection: ShapeShift FOX Token Whitelist Proposal to BancorDAO - Google Docs
I think that looks great and a solid co-investment in and from BNT.
Update: Proposal to whitelist FOX on Bancor for IL protection on single-sided liquidity pools is live in Bancor governance 1f389
This proposal to Bancor is just to Whitelist FOX for IL protection (and allocate 100k BNT to cover IL) and does not yet include any liquidity mining incentives. If ShapeShift and/or Bancor wanted to whitelist FOX, this could be implemented in a future proposal.
Note: We looked into including an airdrop to BNT holders and stakers for the top 2 LPs on June 9th and found that the list would have included ~45,000 addresses, which would have required more FOX than the Treasury currently has available and undesignated. If we do proceed with an LM program for Bancor, I think the FOX Token rewards should be concentrated on FOX LPs on Bancor rather than to the broader Bancor community.
We’re also exploring an alternative single-sided FOX staking opportunity with Tokemak that we may want to consider in lieu of LM incentives on Bancor, stay tuned!