About Bancor (BNT)

Bancor constitutes a network of decentralised protocols, openly sourced, aiming to facilitate on-chain trading and enhance liquidity.

At its core, the Carbon protocol functions as a decentralised trading mechanism enabling users to execute automated trading strategies. It permits the use of personalised on-chain limit orders and range orders. Users also have the flexibility to merge orders, thereby crafting automated strategies to buy at low prices and sell at higher ones.

What is Bancor (BNT)?

Decentralised exchanges, known as DEXs, have empowered users with enhanced privacy and control over their funds by removing intermediaries that typically hold funds and charge substantial fees for trading. 

However, these DEXs encounter significant issues: liquidity problems and impermanent loss. Impermanent loss refers to the decrease in value faced by liquidity providers when the asset prices fluctuate (a wider difference resulting in a larger loss) compared to the time of their initial deposit into liquidity pools. 

This issue commonly arises in Automated Market Maker (AMM) based exchanges due to their algorithmic models that constantly adjust token ratios in pools as one token's price surpasses the other.

Bancor stands as a decentralised exchange enabling asset swapping and rewarding users for depositing assets into liquidity pools. Its distinguishing feature, Single-Side Staking, prevents impermanent loss for liquidity providers, enabling them to earn passive income. 

The Bancor ecosystem operates through its native token, BNT, utilised for utility functions such as liquidity provision, platform fees, participant rewards, and voting on governance proposals.

Who are the founders of Bancor?

Established in 2017, Bancor is among the earliest decentralised exchanges in the DeFi space, co-founded by Guy Ben-Artzi and Galia Benartzi. Its development team introduced Bancor3, an upgraded version boasting instant impermanent loss protection, reduced trading costs, and more, aiming to provide improved earning prospects and an enhanced user trading experience.

How does Bancor(BNT) function?

Typically, contributing liquidity and earning rewards in a DEX requires depositing a token pair into a liquidity pool. For instance, if you possess Ethereum, you'd need 50% of another token like DAI or USDT to create a liquidity pool. 

Bancor's Single Side Staking feature enables contributing liquidity using just one token, like ETH while receiving liquidity rewards in the same token. This approach offers increased flexibility and convenience to liquidity providers while reducing the likelihood of impermanent loss.

Users incur a nominal fee for asset exchanges on the platform, utilized to safeguard traders against impermanent loss and compensate liquidity providers for their engagement.

What sets BNT apart in its Use Cases?