BNT Bancor Network Token
Buy BNT Bancor Network Token
The protocol utilizes a ‘bridge' to implement an asynchronous pricing mechanism. This means that a user can sell a token to the ‘connector' at an automatically calculated price, as well as receive collateral or exchange it for other tokens. The custom CW provides a certain number of smart tokens. As a rule, when demand grows, the price of the smart token does the same, and vice versa. Currently, this is one of the leading DeFi projects which is paid much attention to. BNT (that means Bancor Network Token) is the unit powering the system. Let's learn more about the project and its cryptocurrency to find out whether it is a good move to buy BNT Bancor Network Token.
Looking closer at Bancor
This is a liquidity protocol built on Ethereum that unlocks automatic decentralized cross-blockchain exchange. Each smart contract contained in the protocol is intended to pool liquidity and execute peer-to-peer trading operations within a single transaction between just two parties.
Users bet BNT on automated market makers in exchange for trading revenues, rewards for providing BNT and the right to vote at Bancor DAO. The company has already processed over $ 2 billion in trading volume with thousands of tokens.
This protocol allows any user to create liquid smart tokens the real value of which is automatically calculated. The major advantage of Bancor is the opportunity to avoid involving third parties in each transaction. As a result, operations become cheaper, easier and require less time.
How automated price calculation works
Automatic token price adjusting is one of the major features of the project. It is guided by built-in automated smart token market makers. This means that smart contracts buy or sell smart tokens in exchange for any so-called connector token (as well as any token found on the network).
The current price depends on the Bancor formula introduced for balancing demand and supply. A token creator can set up the ratio (known as the connector weight) in order to decrease or increase the level of liquidity. The connector weight indicates the sensitivity of price or how the trading volume affects the price change. When prices are not synchronized with the ones indicated on external exchanges, the prices are corrected manually on the basis of Bancor analytics.
How Bancor is organized
A long sequence of completely liquid cryptocurrencies is generated on Bancor. Smart tokens keep the other digital assets in reserve and can use exchange funds (or baskets) like ETF, exchange tokens like shapeshift as well as tokens of various protocols and projects.
The Bancor token has Ether in reserves, while the other smart crypto units use BNT and other tokens. BNT forms the financial structure of the network. The system is organized in such a way that increasing the price of any other smart asset leads to a rise in the cost of the Bancor token itself. In turn, this has a positive effect on all other tokens in the system. Thus, this method lies at the heart of strengthening the price of each particular digital currency in reserve and preventing its devaluation.
Developers of Bancor
Bancor was founded by four persons in 2017. It is interesting that the word “Bancor” was introduced 76 years ago by John Maynard Keynes to indicate the world currency unit.
Here are the people who stand behind this project:
- Eyal Hertzog, a product architect. This person is well-known in the crypto world. He previously founded MetaCafe, Israel's leading video sharing website.
- Guy Benartzi, CEO at Bancor. In 2005, he was a co-founder of Mytopia, a company that developed cross-platform games for social media.
- Yudi Levi, CTO at Bancor with over 20 years of experience in the technology business. He is also known as a co-founder of AppCoin.
- Galia Benartzi, CEO and the founder of Particle Code. At Bancor, she plays a big role in the development of the company.
Peculiarities of the Bancor network
There is no spread, so users get low-cost conversions provided by a non-commercial automated market maker. Prices are transparent and clear due to the Bancor formula. It includes the volume of each particular transaction and does not require an order. The system also features constant liquidity, so a user can easily convert tokens whenever they want. It does not matter whether a user is a seller or buyer, the trading volume also makes no difference.
Taking into account that all transactions are carried out with the help of smart contracts, depositing is not needed. Moreover, the project event doesn't require a user to be registered on the platform, since on-chain conversions need only a Web3 wallet. Finally, the system is backward compatible. This enables any ERC20 token to be integrated with the network without any fees or code changes.
Bancor BNT token
The BNT token is the core of the system, it was activated in June 2017. BNT can be used as a kind of intermediary to convert other available tokens. Besides, it is possible to exchange it for Ethereum at any time.
The number of BNT in circulation is always different. The tokens are generated when users send ETH directly to the smart contract. In turn, when BNT is sold the corresponding number of tokens are burnt. Bancor also allows using other liquidity tokens, but they must meet the ERC20 or EOS standards.
The protocol ecosystem supports a two-way token model: liquidity tokens and relay tokens. A liquid token is an automated one with a single reserve that generates and burns itself automatically. To do this, a reserve token is sent to the smart contract or removed from it, respectively. To use the Bancor Network, a liquidity token needs a reserve one in either BNT or a BNT derivative.
Relay tokens are used to stake and provide liquidity. Token holders are paid a percentage of Bancor's future earnings. They indicate the proportion of the amount in the stake in relation to the total value of the pool.
Since listing in 2017, the BNT price hasn't changed significantly. Besides, this token has never shown a significant drop. Experts call BNT one of the most stable altcoins in the market.
This cryptocurrency is actively traded on such exchanges as Kraken, Coinbase, Latoken, Binance and P2B where you can buy BNT using your bank card or one of the other payment methods that are more convenient to you.
The place of Bancor BNT on the crypto market
Since 2017, more than 1.2 million transactions have been made using BNT on more than 40,000 user wallets. In the USD equivalent, this is over $1.5 billion. About 10% of the total BNT supply comes from Bancor pools. This makes BNT one of the most actively traded tokens in the world.
The company's mission is to enhance the growth and further development of currencies created by users, including new or niche tokens that cannot be easily converted due to some particular circumstances. This is exactly one of the most important things resulting from the open source blockchain revolution. Bancor's technologies provide a long chain of currencies with continuous liquidity. The number and variety of tokens in the system grow quite rapidly, BNT value will also increase making this token a good choice for investment and secure trading.