Bancor
Bancor is a decentralized liquidity protocol that enables automated, on-chain token swaps. It operates on Ethereum and has expanded to support other networks. The core concept is the Smart Token, a token whose value is backed by a reserve of other tokens held in a converter contract. Each Smart Token maintains reserves of multiple tokens and a bridge token called Bancor Network Token (BNT), enabling direct conversions between any two tokens in the network without relying on traditional liquidity pools for every pair. Prices are determined by a reserve-based formula that automatically adjusts as trades occur.
BNT, the Bancor Network Token, serves as the protocol’s native connector token. It is used to bootstrap
Historically, Bancor introduced its original protocol in the early years of decentralized finance and subsequently released
Governance is implemented through Bancor DAO, which allows BNT holders to participate in proposals that affect
Critics point to the protocol’s complexity and to reliance on the connector token as factors to consider,