What is Bancor?

Bancor (BNT) is a decentralized liquidity protocol that enables automated token swaps and liquidity provision without relying on centralized exchanges. Launched in 2017, Bancor introduced the concept of automated market makers (AMMs), allowing users to trade tokens directly from liquidity pools instead of traditional order books.

Bankor's native token, BNT, is used for staking, liquidity incentives, and governance within the Bancor ecosystem.

How is Bancor useful?

Bancor provides single-sided liquidity provision, allowing users to stake tokens without the risk of impermanent loss, a common issue in DeFi. It enables low-slippage token swaps by connecting liquidity across various pools, optimizing trading efficiency.

Bancor’s automated liquidity system benefits traders, liquidity providers, and DeFi developers, offering a seamless, decentralized trading experience. The BNT token powers the protocol, acting as an intermediary asset in token swaps, reducing fees, and enabling governance participation.

How does Bancor work?

Bancor operates using automated market makers (AMMs), where liquidity pools are filled with BNT and other tokens. When users trade, Bancor automatically adjusts token prices using an algorithmic pricing model, ensuring continuous liquidity.

Unlike traditional AMMs, Bancor offers impermanent loss protection, compensating liquidity providers for losses that may occur when token prices fluctuate. Bancor runs on Ethereum and other blockchains, enabling cross-chain interoperability for seamless token swaps.

Bancor milestones

• Pioneering Automated Market Makers (AMMs): Introduced the first AMM-based decentralized exchange model.

• Launch of Bancor V2 and V3: Enhanced liquidity efficiency, introduced impermanent loss protection, and improved staking rewards.

• Expansion to Multi-Chain Support: Integrated with additional blockchains, increasing cross-chain liquidity.

• Governance and Community Growth: Strengthened decentralized decision-making through BNT governance proposals.

• Strategic Partnerships and DeFi Integrations: Collaborated with major DeFi protocols to enhance liquidity and token utility.

Bancor remains a key innovator in DeFi, offering advanced liquidity solutions and impermanent loss protection to enhance decentralized trading and staking.

Buy Bancor (BNT) on BITmarkets.