Bancor is a decentralized liquidity network that allows you to hold any token and convert it to any other token in the network, with no counterparty, at an automatically calculated price, using a simple web wallet.

How Does it Works

Bancor is a decentralized liquidity network allowing every integrated token to be instantly converted for any other. The Bancor Network provides an on-chain, fully decentralized solution for conversions between tokens in the network, through a low-cost, autonomous and adjustable liquidity mechanism.
BNT is the hub token that connects all tokens in the Bancor Network, allowing them to be easily convertible to each other thanks to their liquidity to BNT. BNT holds a connector balance in ETH, making all the network's tokens convertible to and from ETH, as well as any other token in the network.

Smart Tokens
The Bancor Protocol standardizes a new type of token that is natively liquid. These "Smart Tokens" are ERC20 compliant, and hold one or more connector token balances in their smart contracts. Smart Tokens can be bought and sold for any of their connector tokens, and can issue new units when purchased while destroying units that are sold. By holding a shared connector token balance in BNT, Smart Tokens in the Bancor Network are all purchasable and sellable for each other. These conversions happen directly through the Smart Token contracts, at continuously calculated rates, without needing to match buyers and sellers as in traditional or even decentralized exchanges.

Token Relays
A Token Relay is a unique Smart Token configuration which holds two connector token balances, one in BNT and one in any standard ERC20 token. This allows existing ERC20 tokens to be backwards compatible with the Bancor Protocol and be continuously liquid to any other token in the Bancor Network, via this Token Relay. Because you can buy a Token Relay for one of its connector tokens, and immediately sell it for the other connector token, it functions as a conduit to allow non-Smart Tokens to be continuously and autonomously liquid.
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