Bancor Network provides a fast, secure and efficient trading platform for crypto users. It allows users to swap tokens and generate passive income from them using the decentralized exchange. It promises the best prices and hassle-free access.
Bancor Network background
The DEX was launched in 2017. We could not find info on the location of the company. However, the official site has info on the team members of the DEX. Eyal Hertzog, Galia Benartzi, Guy Benartzi, Asaf Shachaf, Yudi Levi, and Nate Hindman are a few of the main team members. It was formed to allow user-created crypto coins to thrive. Bancor is a protocol for creating smart tokens which can be exchanged via their smart contracts efficiently.
Bancor Network overview
This DEX is the only platform with a decentralized staking protocol having single-sided liquidity and full protection from loss due to price volatility. The service uses an advanced reserve method that helps in automatic price discovery and continuous token liquidity without the pairing of two parties via an exchange.
Pros & cons
- Easy token swap
- Intuitive wallet app
- Supports a large number of tokens
- Beginners may find the process complicated
- Limited to only a few blockchain networks at present
Key features of Bancor Network
Important features of the decentralized exchange are:
- It allows trading tokens on Ethereum and other blockchains.
- You can provide liquidity and earn fees with the single-token exposure and loss protection.
- Deploy a liquidity pool or borrow against a liquidity position.
- Users can put forward a liquidity pool proposal for whitelisting.
- The Bancor liquidity and trading features can be integrated into smart contracts.
- BNT is the native token of the platform.
- You can earn 100% upside exposure with the safe staking.
- Fees are added automatically to your stake and increase your gains.
What wallets does it support?
The wallets that the DEX supports are:
- Wallet Connect
- Coinbase Wallet
Connecting your wallet to this DEX is done as follows:
- Click on the connect wallet option on the official site
- Choose your wallet.
- Login and authorize your wallet
- Now your wallet is connected with the exchange
- You can trade using the tokens in your wallet with the tokens in the exchange.
How does Bancor Network work?
Users can deposit their tokens in AMMs (automated market-makers) and earn trading fees, rewards for staking, voting power, and liquidity mining benefits with the DEX. The platform allows safe staking. With the normal DEXs, the tokens you hold or stake have high volatility which can lead to value loss in your holdings called impermanent loss.
With Bancor, your assets are protected regardless of the price fluctuations of your token. Thus, you can earn better profits from staking with minimal risk. With the DEX, users contribute only a single asset and have 100% exposure to it with the benefit of earning up to a maximum of 40% APR (annual percentage return).
What can you buy with Bancor Network?
The DEX supports ETH-based tokens and tokens on other blockchains. Some of the most popular tokens you can buy here are:
Are there any risks with Bancor Network?
Some of the risks associated with using this DEX are:
- New users can find the process complicated
- Does not allow fiat currency exchange
Bancor Network fees
The DEX does not charge fees for trading and withdrawal. However, any transaction on the ETH network will cost gas fees. The gas prices for the transactions are listed on the Metamask wallet on the ETH gas station. Each trade will incur a percentage fee which is given to the liquidity providers.
The DEX allows deposits in BNT and any other token on the ETH network. However, it does not support fiat currencies.
Should you use it?
From the website info, the total liquidity value of the DEX is $1.218 billion and its volume (24h) is $14.513 million. BNT price is $2.77 and the total BNT stake is 85.26%. With efficient features and the ability to exchange tokens easily and the security offered, crypto users will benefit from using the DEX.
Final word for Bancor Network
Bancor Network provides an innovative token exchange method without the necessity of a counterparty. It is the first DEX to support cross-chain conversions that do not require the use of private keys. Another benefit for users is the automatic liquidity it offers. For users in search of a safe and efficient way to generate passive income from their tokens, this DEX is a good option.