Bancor is a blockchain protocol created in 2017. It supports decentralized trading of digital assets on Ethereum and other blockchains in a fully automated manner. The protocol is designed for small and micro-cap coins that often face liquidity issues because of their market capitalization or the limited range of listings on exchanges. In doing so, it seeks to supply liquidity to these assets while also offering rewards to liquidity providers. 

Put simply, it’s an on-chain liquidity solution built to encourage capital to flow into smaller crypto markets.

The Bancor protocol works in a way that resembles an automated market maker (AMM), which is commonly used to provide liquidity for markets. Unlike traditional approaches, it aims to achieve this without depending on a financial institution.

BNT serves as Bancor’s native token. It has a maximum fixed supply of 69 million tokens. The platform also uses ETHBNT.

What are Bancor’s key features and how does it work?

Bancor operates like an AMM and is intended to motivate participants to lock their assets in liquidity pools on the platform. The system relies on its native BNT token and smart contract technology to enable trades with minimal fees and quick execution.

Each pool includes a token pair plus a reserve made up of the native BNT token. Users can add either one or both tokens to a pool, but they must also contribute BNT. With this design, BNT functions as the reserve currency across the network.

When users deposit assets into a pool, they receive newly issued tokens known as pool tokens. These pool tokens represent the right to reclaim the original amount the user locked into the protocol. During trades, BNT acts as the intermediary currency.

Bancor employs “oracles” to help liquidity providers access the appropriate price for assets they have previously locked within the platform. These oracles collect pricing data from outside sources. As a result, pool token proportions can be updated automatically to align with market prices, enabling LPs to withdraw token deposits at equivalent value.

What is noteworthy about Bancor?

Because Bancor is built on and compatible with both Ethereum and EOS, the platform can support swaps between a token issued on the Ethereum standard and another on EOS, using BNT as the bridging token.

How can BNT be used?

The BNT token is a key component of the trading workflow within the Bancor protocol. 

Where can you buy BNT?

BNT can be purchased on the CEXs and DEXs listed in the market tab here. Some widely used venues include Bancor Network itself, OKEx, and ZB.com.

To get the full, current details on the BNT price-such as historical price charts-please check the price data on this page.