BTSE, a multi-currency digital assets exchange and derivatives platform, is pleased to welcome the Bancor Network Token (BNT).
Bancor is a liquidity protocol that enables automated, decentralized exchange on the Ethereum chain. The platform’s native token, BNT, currently has a market cap of nearly $980 million, according to CoinMarketCap.
The on-chain liquidity platform based in Switzerland has seen remarkable growth, even as it lags behind rivals such as Maker and Aave. Bancor’s total value locked at the start of the year rose from just $140 million to around $1.5 billion now and ranks 12th on DeFi pulse.
What Problem Does Bancor Solve in DeFi?
Bancor was established in 2016 to serve as a trademarked system for Smart Token creation. The project caters to the need for a Smart Token standard capable of linking all cryptocurrencies to a decentralized, autonomous liquidity network. It facilitates the seamless conversion of tokens directly on the chain, removing the need for a third-party platform. BNT, as its utility token, acts as the standard for all smart tokens created on the network.
The project also seeks to solve the crucial liquidity challenge by enabling continuous and automated convertibility for all integrated tokens.
Smart Tokens on Bancor hold one or more tokens in a connector balance on-chain, so users can instantly buy/sell any Smart Token in exchange for any of its connector tokens. The Bancor Smart Wallet supports all EOS and ERC20 compliant tokens for fast and secure token swapping. Several token projects built by successful blockchain firms have joined the Bancor protocol, including SENSE, Power Ledger, WAX Token, among others.
Bancor Network’s Vortex Mechanism
Bancor recently introduced Vortex, a new mechanism that enables users to increase their capital efficiency while adding to the liquidity supply. Users adding liquidity in BNT can borrow funds while also earning lucrative yield from swap fees.
The Vortex proposal reworks the mechanism of vBNT, a special version of BNT that grants token holders the right to participate in Bancor’s governance. vBNT, viewed as the network’s pool token, is automatically awarded to users who stake BNT into various pools. Vortex enhances vBNT’s functionality by creating an infrastructure that enables users to swap vBNT for BNT. They can then exchange the converted token into any other supported crypto asset.
Users can stake their BNT and earn rewards with impermanent loss (IL) protection on various Bancor pools. The ETH/BNT pool offers 7%+ return on ETH and 60%+ return on BNT. They can also provide liquidity to USDC and USDT pools available on Bancor and earn lucrative returns with minimal fees.
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