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What is Bancor (BNT)?
Decentralized exchanges, DEXs have given users the benefit of privacy and control over their funds, eliminating the third parties- that hold users’ funds and take a hefty cut for trading. However, these DEXs suffer from two major issues: illiquidity and impermanent loss. Impermanent loss is the loss of value that liquidity providers face when the price of assets differs(wider difference, bigger loss) compared to the time you deposited them in liquidity pools. This typically happens in AMM(Automated Market Maker) based exchanges due to their algorithmic models that continually adjust the ratio of tokens in the pool when the price of one token becomes higher than the other.
Bancor is a decentralized exchange that lets users swap assets and earn rewards by depositing assets in liquidity pools. One feature of Bancor that sets it apart from other AMM models is Single-Side staking, which prevents impermanent loss for liquidity providers, allowing them to earn passive income. Bancor economy is powered by the native token BNT, which is used for utility purposes like liquidity provision, platform fees, to reward participants and vote on governance proposals.
|Guy Ben-Artzi and Galia Benartzi
|Utility and Governance
|Proof of Stake (PoS)
Who are the Founders of Bancor?
Bancor is one of the first decentralized exchanges in DeFi– co-founded back in 2017 by Guy Ben-Artzi and Galia Benartzi. Its development team has launched an upgraded version, Bancor3, with instant impermanent loss protection, reduced trading costs, etc., to offer better earning opportunities and improved user trading experience.
How does Bancor(BNT) work?
Usually, one needs to deposit a pair of tokens in order to contribute liquidity and earn rewards in DEX. That means if you have Ethereum in your wallet, you will need 50% of another token, such as DAI or USDT, to create a liquidity pool. The Bancor’s Single Side Staking feature lets you contribute liquidity using only one token like ETH, and you will receive liquidity rewards in the same token. This method offers greater flexibility, and convenience, to LPs as well as reduces chances of impermanent loss.
Users are charged a minimal fee for exchanging assets on the platform, which is used to protect traders from impermanent loss and rewards liquidity providers for their participation.
What makes BNT Unique Use Cases?
- Bancor offers instant impermanent loss protection from day one of depositing assets.
- It has multi-chain and layer 2 support, allowing users to access a broader range of assets and tap into different liquidity pools on multiple blockchains.
- Users can earn dual-sided rewards for the staked token in the platform’s BNT tokens and rewards offered by third-party protocols.
- Bancor also has a decentralized protocol- Carbon, for automated on-chain trading with customized strategies and various tools.
Bancor (BNT) Price Analysis
- BNT price today is trading at $0.3849, with a 24-hour trading volume of $2.87 million. In the last 24 hours, The BNT price has seen a drop of about 0.78%, and its market cap is $57.54 million as of July 13, 2023.
- BNT price surged by more than 80% in the first quarter, but it could not sustain and followed a downtrend.
- It has managed to break through the pattern, with a bullish divergence in RSI. The market sentiment of BNT price looks bullish, so it might possibly rise to $0.44.
|BNT Price Today
|Price Change (Yearly)
|Market Rank (as per CMC)
|Fully Diluted Market Cap
How to Buy BNT Tokens in India?
To buy BNT Token in India, just follow the below mentioned steps:
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