In 2017, the growth of DeFi accelerated at a pace so impressive that almost nobody could resist throwing their money into the crypto market. Being born at that time, Bancor Network was a phenomenon that caused an explosion in the middle of the crypto fever.
The article below will provide all the detailed information about Bancor Network, including:
- What is Bancor Network? How does it work?
- What is Bancor Network Token (BNT)? All the detailed information about Bancor Tokenomics.
- How to swap, buy & store BNT tokens? Is Bancor a good investment?
Let's find out together!
- What is Bancor Network?
- How does Bancor Network work?
- What is BNT?
- Detailed information about BNT Token
- BNT Price Today
- BNT Key Metrics
- BNT Token Allocation
- BNT Token Sale
- BNT Token Release Schedule
- BNT Token Use Case
- How to get BNT Token
- How to buy BNT token
- How to store BNT Tokens
- Roadmap & Updates
- Team, Investors, and Partners
- Is Bancor Network (BNT) a good investment?
- Similar Projects
What is Bancor Network?
Bancor Network is one of the first Decentralized Applications (DApps) built on the Ethereum blockchain that enables swapping tokens without any intermediary. In short, Bancor is a non-custodial Decentralized Exchange that enables creating Liquidity Pools to trade crypto assets.
It uses a set of Smart Contracts to convert between popular tokens including tokens from other blockchains. And the release of Bancor Network 2.1 has opened a new future for the entire project. Knowing Impermanent Loss is an itching matter of all DEXs, Bancor Network revealed a solution - Impermanent Loss Insurance which is discussed later.
How does Bancor Network work?
Like other traditional DEXs, Bancor Network uses an AMM protocol running on the Ethereum blockchain that enables trading various crypto assets. The price of tokens in pools is rebalanced automatically through the AMM protocol. Bancor’s native token is the BNT token created on the Bancor Network.
Bancor’s Liquidity Pools support both ERC-20 and EOS tokens. When adding liquidity to Bancor’s Pools, Liquidity Providers are required to deposit an equal amount of ERC-20 (or EOS) tokens and BNT tokens.
After releasing the first AMM in 2017, in 2021, Bancor upgraded its system to version 2.1 which proposes multiple solutions with innovative features. Single-sided Exposure is an improvisation of AMM which allows LPs to deposit either ERC-20 (EOS) tokens or BNT tokens.
Impermanent Loss Insurance is designed to bring back the original value of deposited tokens to LPs. If an LP withdraws tokens after 100 days or more, the insurance will compensate 100% for any occurred impermanent loss. With Bancor 2.1, Liquidity Providers are not on pins and needles when keeping their tokens in Liquidity Pools for a long period.
What is BNT?
In general, BNT is a native token of Bancor Network. BNT is a smart token that is the reserve token of Bancor Network. That means each BNT smart token is pegged to hold reserves of other tokens with Smart Contract.
Detailed information about BNT Token
BNT Price Today
Currently, you can track the price of BNT on Coin98 Markets: markets.coin98.com/currencies/bancor
Coin98 Markets is a website that helps users to get updates of the real-time prices, as well as view the detailed information of a Token Metric from any project. More specifically, you can access the home page or the community page of a project, or filter the coins/tokens by Market Cap, Trading Volume, etc.
BNT Key Metrics
- Token Name: Bancor.
- Ticker: BNT.
- Decimal: 18.
- Blockchain: Ethereum.
- Token Standard: ERC-20.
- Contract: 0x1f573d6fb3f13d689ff844b4ce37794d79a7ff1c.
- Token Type: Utility.
- Max Supply: 232,415,491 BNT.
- Circulating Supply: 232,401,378 BNT (99% of Max Supply).
BNT Token Allocation
All BNT tokens have been issued to the development team, investors, and community.
BNT Token Sale
In summer 2017, Bancor raised a total amount of $153 Million Dollars for ICO which was incredibly impressive. The ICO attracted 10,885 buyers who made over 15,000 purchasing transactions during the token sale. Here is the detailed information about Bancor’s ICO:
- Fixed Price: 100 BNT per 1 ETH.
- Duration: 14 days or Hidden ETH Cap is reached, with a one-hour minimum time. The hidden cap would be revealed when 80% of the hidden cap was reached.
- BNT tokens were distributed immediately to ETH contributors.
BNT Token Release Schedule
Initially, BNT tokens were distributed to all founders and team members with a 3-year vesting schedule every 6 months.
BNT Token Use Case
In the Bancor Network platform, BNT tokens are the key to incentivize Bancor’s token holders to become active in trading. BNT is mostly used for transaction fees. As time goes on, Bancor has been improved to have multiple options for BNT holders.
When providing liquidity into pools, LPs can earn rewards in return like other exchanges. As shown in the chart, to get the best token reward, you must deposit BNT into the ETH/BNT pool with a fee of 0.10%. You can then earn a share of its staking rewards.
At the moment, BNT holders can participate in voting with vBNT received in return when staking BNT. In short, vBNT represents the staked tokens in pools as well as the voting ability in governance. Everyone with no vBNT can create proposals for the BancorDAO - a platform for voting on Bancor Network. Therefore, Bancor Network is serving a huge community that is willing to contribute new ideas to improve the platform.
How to get BNT Token
You can get BNT by buying token on multiple available exchanges:
- CEXs: Binance, Huobi, FTX, Coinbase, etc.
- DEXs: Uniswap, Sushiswap, etc.
How to buy BNT token
Step 1: Connect Coin98 Extension Wallet.
Step 2: Select Uniswap.
Step 3: Choose coins/tokens for trading:
- Search BNT.
- If the result does not come up, you can paste the contract of BNT into the search box: 0x1f573d6fb3f13d689ff844b4ce37794d79a7ff1c
Step 4: Adjust the amount you want to swap.
Step 5: Adjust the gas fee, then click Approve.
How to store BNT Tokens
You can store, receive and send BNT tokens on Coin98 Wallet with the following steps:
Step 1: At the main screen of Coin98 Wallet, click Receive.
Step 2: Search for the BNT token and choose BNT on the Ethereum blockchain.
Step 4: Copy your BNT wallet address or use the QR code and send BNT tokens to this address.
Roadmap & Updates
Bancor V2 has a solution for feeding the precise prices of locked tokens through an oracle. It is designed to acquire prices from external sources into Bancor’s system. Impermanent Loss Insurance and Single-sided Exposure features are integrated into the system for users to have seamless experiences with Bancor Network.
In 2021, Bancor V3 was launched focusing on three core targets:
- Deliver the staking service to users safely, easily, and profitably.
- Add more crypto assets onto Bancor.
- Level up trading volume on the Bancor Platform
In Aug 2021, Bancor announced that they will implement Bancor V3 with Chainlink Keepers features to benefit Liquidity Providers and boost the user trading experience. Chainlink Keepers provides Automated Smart Contract development for multiple projects and enterprises. As a result, instead of manually doing the trading process, now it will be automated.
Team, Investors, and Partners
All the members of the Bancor administration are Jewish.
- Guy Benartzi the Co-Founder of Bancor now living in Switzerland.
- Galia Benartzi the Co-Founder of Bancor and the sister of Guy Benartzi.
- Eyal Hertzog the Product Architect at Bancor. And he and Guy Benartzi were formerly knowns as Co-Founders of AppCoin to issue private currency.
- Yudi Levi the CTO of Bancor since Aug 2016.
In Seed Round, Bancor was invested in by KR1 plc which is an investment company focusing on technology and open-source blockchain network. As a result, KR1 plc is now the leading investor of Bancor Network. Moreover, in a few years, KR1 plc has invested in multiple projects built on blockchain. In Mar 2020, KR1 plc gave funds to Acala Network which is a financial hub of Polkadot.
Since 2017, Bancor Network has spread influence by forming numerous partnerships with big communities as well as companies: Smart Contract Japan, Enterprise Ethereum Alliance, Gnosis, Status, Civic, Aragon, IMToken, Antshares, and Starbase.
In Feb 2018, Bancor Network had ONG social as a partner - Currently known as SoMee Social. The integration of Bancor and ONG is ensuring the liquidity of both platforms. To conclude, having multiple profound partnerships since 2017 has helped Bancor come on a long way on its journey.
Is Bancor Network (BNT) a good investment?
Compared to other new projects, Bancor is somewhat behind in technologies and needs to speed up the innovation process. To sum up, there are several points that you should take into account before making any future decision:
- Bancor V2 solved two main problems for every DEXs with Single-sided Exposure and Impermanent Loss Insurance.
- Bancor V3 has several upgraded features to improve the system on Bancor Network. And the partnership with Chainlink Keepers has helped Bancor level up the trading experience for daily users.
- BNT tokens are used as the intermediary for trading, staking as well as voting in the BancorDAO. Therefore, the demand for BNT will increase over time. Bancor is boarding many new crypto assets to make the Ecosystem more abundant. As a result, Bancor has a long-term strength for flourishing.
- Sooner or later, Bancor Network will have to innovate the technologies of the platform because of being built on the Ethereum blockchain. In fact, users have a number of other trendy options on the table in the DeFi world such as the high volume Uniswap on Ethereum, the speedy Raydium on Solana. Therefore, instead of others, why do users opt for Bancor Network?
As shown above, Bancor is already a big project but somehow behind others. In the bull run 2021, it’s a competitive fight for DEXs to accumulate as much liquidity as possible to prepare for the next circle.
In addition to the information, you should Do Your Own Research and be responsible for your money.
In the DEX race, Bancor Network has lots of competitors on the way. They are worth being mentioned as follows:
- 0x (ZRX): A decentralized peer-to-peer platform running on the Ethereum blockchain for trading tokens.
- Kyber Network (KNC): A startup from Vietnam, Kyber Network is a blockchain-based platform that connects liquidity from different sources to power crypto exchanges.
In 2017-2018, there was the crypto rush aka the crypto bubble, and the market’s total capital decreased about 80% in one year. Bancor is one of the projects that survived through the storm that is strongly backed by huge investors and Bancor’s team is good as well.
As time goes on, BNT tokens are gradually distributed as rewards and incentives to attract uses from other DeFi competitors. In the long run, Bancor Network has a huge potential in the DeFi space. They have proven the survivability in the last bull run which is valuable evidence to take into consideration. As the crypto market is having stable and sustained growth, Bancor will surely get a bite of share in the DeFi market.
And that is all you need to know about Bancor Network and its BNT token. Hope you have gained useful insight to understand the future potential behind Bancor Network better.
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