Cena Bancor (BNT)

What is Bancor Network Token (BNT)?

Bancor Network Token (BNT) serves as the foundational utility token for the Bancor ecosystem, a set of decentralized and open-source DeFi protocols designed to facilitate on-chain trading and liquidity provision. Built on Ethereum as an ERC20 token, BNT plays a crucial role in connecting various tokens within the network and enabling seamless conversions.

Key Functionalities

At its core, Bancor is an intricate system of smart contracts that regulate the conversion of tokens on its platform. These smart contracts not only handle conversions but also control access to the network's liquidity pools. Liquidity pools in Bancor act as bridges connecting different tokens, making it easier for users to swap assets without requiring a counterparty. By using Bancor's smart contract features like 'convert,' users can seamlessly initiate a conversion between any pair of tokens on the network.

Blockchain Interoperability

While Bancor Network is predominantly based on the Ethereum blockchain, it boasts interoperability with other blockchains. This feature, known as blockchain interoperability, broadens its scope and versatility, allowing it to interact and obtain data across multiple blockchain systems.

Role of USDB

USDB (USD Bancor) serves as Bancor Network's stablecoin, designed to offer a stable reserve currency within the network. It is backed by BNT and functions as an important alternative in Bancor relays, adding another layer of utility to BNT.

Liquidity Pools and ConverterBase Contracts

Within Bancor, each liquidity pool is tailored for a specific token set and anyone can contribute liquidity to earn conversion fees. Pool tokens are distributed proportionately to the contributors based on their stake in the liquidity pool. These pools are managed by ConverterBase contracts, which are specialized smart contracts that contain the core logic for token conversions. These contracts also offer functions like 'fund' and 'liquidate' to enable users to add or remove liquidity seamlessly.

Advancements in Bancor v2.1

Bancor's latest iteration, Bancor v2.1, has introduced novel features for liquidity providers such as single-sided exposure and impermanent loss protection. These updates aim to optimize the yield generated from trading fees and liquidity mining rewards, making it more appealing for participants.

History and Team

Founded in 2017 by Eyal Hertzog, Galia Benartzi, and Guy Benartzi, Bancor was inspired by economist John Maynard Keynes' concept of a supranational currency. The project successfully raised approximately $144 million during its ICO. Eyal Hertzog, a veteran tech entrepreneur, serves as the product architect. He previously founded MetaCafe, a popular video sharing platform in Israel. Galia Benartzi is the business developer at Bancor and CEO of Particle Code, while Guy Benartzi, the current CEO of Bancor, co-founded Mytopia, a gaming company, back in 2005.

Tokenomics: Staking and Creation of BNT

BNT can be minted through a staking process. To stake, users need to purchase and hold relay tokens in their wallets. The Bancor ecosystem employs a dual-token model consisting of liquid tokens and relay tokens. In this system, relay tokens serve as indicators of a user's share in the liquidity pool and also facilitate the conversion of any Bancor token into another in a single transaction.