Bancor - Perhaps the best place to trade Ethereum tokens

Bancor (BNT)

What is Bancor?

Bancor is a decentralized exchange that allows users to swap and trade different tokens on the Ethereum or EOS blockchain. It is a type of Automated Market Maker (AMM), where users can stake their tokens to provide liquidity, and get rewarded for doing so. AMM models use liquidity pools as counterparties instead of the order book model which is based on buyer and seller matching.

Why does Bancor have value?

Bancor was one of the first protocols to use an AMM model, being launched in 2017. Its advantage over more recent AMMs, like Uniswap, is that users only need to stake one token in the pair (Ex: Staking just BNT versus BNT + USDC). However, all participants must also deposit BNT to provide liquidity. Bancor offers a unique solution in that it can provide liquidity across chains and can also protect liquidity providers from impermanent loss.

Basically, Bancor has value because it’s a one-stop shop to trade coins on Ethereum and to also act as a liquidity provider cross-chain. All while helping users earn yield through their tokens.

What are the benefits of Bancor?

●       The platform is very user-friendly.

●       Users get rewarded for providing liquidity with nice APR’s.

●       Liquidity providers only need to stake one token in the pair.

What are the disadvantages of Bancor?

●       It can be affected by high gas fees on the Ethereum network.

What are BNT’s tokenomics?

The maximum supply of BNT is 69 million. Around 50% of that supply was distributed among token sales, and the rest has been gradually released to liquidity providers.

Who founded Bancor?

Eyal Hertzog, Guy Benartzi, Galia Benartzi, and Yudi Levi.

Who are Bancor’s investors?

Bancor has conducted three funding rounds, including an Initial Coin Offering. The main investors are KR1 plc, NON-fungible Chain, Alexis Berthoud, Tim Draper, Blockchain Capital, and ICONIZ.

Concise Crypto Grade:

B+  :Bancor is one of the OG decentralized exchanges in the crypto ecosystem and has been working closely with Ethereum and Ethereum related projects since it’s launch. Bancor created the AMM model which so many decentralized exchanges now use today. We love what they are doing with their latest release Bancor 3, which offers impermanent loss protection, lower gas fees, and auto-compounding rewards.

Where can I buy BNT?

Coinbase, Binance, FTX, Bithumb, Huobi Global, Gemini.

What ecosystem does Bancor run on?

Ethereum (EOS via BancorX)