bnt

Bancor Network Token (BNT) is the native token of the Bancor Protocol, a decentralized liquidity network designed to enable seamless token swaps and automatic market making across multiple blockchains. BNT operates as a connector token that underpins the network's liquidity pools and price discovery.

In Bancor's model, each liquidity pool contains a reserve of BNT in addition to the other token(s). When a user swaps token A for token B, the protocol may route the trade through BNT, effectively converting A to B via A -> BNT -> B. BNT reserves help provide liquidity at all times, reducing dependence on external market makers and enabling swaps even for less-traded tokens.

Uses and incentives: Liquidity providers deposit assets into Bancor pools and earn trading fees proportional to their share. BNT can be earned as rewards and used for participating in certain protocol programs or to pay fees within the Bancor ecosystem. BNT is also used as a bridging token in Bancor's cross-chain liquidity features, allowing cross-network trades by using BNT as an intermediary asset.

Technology and access: BNT is issued as an ERC-20 token on Ethereum and has been extended to other compatible networks via Bancor's cross-chain tooling, enabling on-chain liquidity across chains. The token plays a central role in the protocol's incentive and liquidity mechanisms and is managed by holders who participate in the network's governance and upgrades as offered by the protocol.

History: Bancor launched the network in 2017, introducing BNT as the protocol's native token to facilitate automated market making and liquidity provision across its platform; since then, BNT has served as the primary connector asset within Bancor's liquidity pools.