Bancor Network (BNT)
Bancor is an innovative ecosystem consisting of decentralized, open-source protocols designed to facilitate on-chain trading and liquidity. It aims to provide users with greater control and efficiency in their trading strategies compared to conventional decentralized exchanges (DEXs). The Bancor ecosystem is governed by the BancorDAO, with BNT (Bancor Network Token) serving as its native token for governance purposes.
History of Bancor
Bancor pioneered the first blockchain-based automated market maker (AMM) in 2017. The initial version of the protocol launched in June of that year, introducing a revolutionary model for on-chain liquidity. Over the years, Bancor has continued to refine its protocols, maintaining a focus on enhancing the AMM model.
| Ticker | BNT |
| Category | Decentralized Exchange (DEX) |
| Website | https://www.bancor.network/ |
| @Bancor | |
| Telegram | bancor |
| https://www.reddit.com/r/Bancor | |
| Contract Addresses | |
|---|---|
| ethereum | 0x1f...1c Copied! |
| energi | 0x94...80Copied! |
In 2020, Bancor introduced the BancorDAO to oversee the governance and development of its protocols. The DAO has since been active in reviewing and voting on numerous governance proposals, engaging a substantial number of governance token holders and voters.
The Bancor ecosystem
Carbon protocol
The flagship protocol within the Bancor ecosystem is Carbon. Carbon distinguishes itself by enabling users to perform automated trading strategies directly on the blockchain with unprecedented control. The protocol allows users to set custom on-chain limit orders and range orders, facilitating the creation of automated buy low, sell high strategies.
Carbon's standout feature is its introduction of Asymmetric Liquidity. This novel approach allows users to establish individual liquidity positions with separate pricing curves for buying and selling. This dual-pricing mechanism facilitates executing buy and sell orders within specific price ranges, offering traders enhanced flexibility and control. Importantly, Carbon's design ensures that executed orders are irreversible, adjustable on-chain, and resistant to MEV sandwich attacks, enhancing the security and efficiency of on-chain trading.
Fast Lane protocol
Fast Lane, another integral component of the Bancor ecosystem, is an open-source arbitrage protocol. It enables users to perform arbitrage between Bancor ecosystem protocols and external on-chain exchanges. The profits generated from these arbitrage activities are redirected back into the Bancor ecosystem, potentially enhancing the overall liquidity and efficiency of the network.
The governance of Bancor
The governance of the Bancor ecosystem is managed by the BancorDAO, which operates through staked BNT. Token holders can stake their BNT to receive vBNT, which grants them the ability to vote on governance proposals. This decentralized governance model ensures that the community plays a substantial role in guiding the development and evolution of the Bancor protocols.
The future of Bancor
Looking forward, Bancor's focus remains on the continuous development and deployment of its flagship protocols, Carbon and Fast Lane. The beta version of Fast Lane is currently operational on the Ethereum mainnet, while Carbon's beta version is anticipated to launch on the Ethereum mainnet, subject to approval by the BancorDAO. Future plans include exploring the deployment of these protocols on additional Layer-1 and Layer-2 blockchains.
The Bancor community is committed to advancing its mission of creating innovative solutions that expand the potential for on-chain trading and liquidity, thereby paving the way for a diverse array of future decentralized finance (DeFi) applications and products.
Usage of Bancor Network Token (BNT)
The Bancor Network Token (BNT) serves multiple purposes within the Bancor ecosystem. Primarily, BNT can be staked for vBNT, enabling holders to participate in governance activities through the BancorDAO. The utility of BNT is subject to expansion and modification as determined by the BancorDAO, ensuring that the token remains integral to the ecosystem's governance and functionality.