Bancor (BNT)
Bancor (BNT)
Bancor is a decentralized Liquidity network that allows users to convert different cryptocurrencies directly through Smart Contracts. It utilizes an automated market maker (AMM) mechanism to enable the seamless exchange of tokens without the need for an order book or centralized exchange.
The native token of the Bancor network is BNT (Bancor Network Token). BNT serves as a Liquidity token and is used to facilitate the conversion between other tokens within the Bancor network.
Examples and Cases
- Token Swaps: Users can swap tokens such as ETH for DAI directly within the Bancor protocol without relying on a centralized exchange.
- Liquidity Provision: Users can provide Liquidity by depositing tokens into Bancor’s Liquidity pools, earning rewards in BNT for facilitating trades.
- Impermanent Loss Mitigation: Bancor offers features like built-in impermanent loss protection for Liquidity providers, allowing them to retain value even when market prices fluctuate.