About Bancor (BNT)
Bancor is a decentralized exchange running on both the Ethereum and EOS networks. The Bancor protocol uses an automated market maker (AMM) smart contract to enable token trades against token liquidity pools. To complete trades with other smart contract tokens, it utilizes a built-in token called $BNT. The current price of BNT can be live-tracked on Binance.
Tokens are deposited into liquidity pools by liquidity providers, or LPs, who receive a part of the overall trading fees as payment. While the minted and burned BNT supply supports the constant market function for continuous token pricing, trading fees shield user deposits from impermanent loss. Although Bancor is already present on Ethereum and EOS, it can be implemented into any blockchain that supports smart contracts to offer cross-chain liquidity.
Bancor reportedly provides liquidity for small-cap tokens, with one or more ERC-20 tokens built in as reserves that can be traded. New tokens are issued for reserve tokens via smart contracts, and the price of the new coins is autonomously priced via smart contracts, making it possible to allow direct conversion between tokens without the need for an exchange or a third party to broker transactions.
Bancor utilizes on-chain governance through the decentralized organization, BancorDAO. Users can use the DAO governance forum to discuss and propose whitelisting, trading liquidity limits, fee charges, and Bancor Improvement Proposals. BancorDAO uses Snapshot for token holders to vote on such issues.
