What is Bancor (BNT)?

Deep Dive

1. Core Functionality

Bancor’s Carbon protocol lets users deploy automated trading strategies (like buy-low/sell-high sequences) directly on-chain. Unlike traditional DEXs, Carbon executes irreversible orders to block MEV sandwich attacks, giving traders enhanced control. Its Fast Lane module redirects arbitrage profits back to Bancor’s ecosystem.

2. Technical Foundation

Bancor pioneered the constant product automated market maker (CPAMM) model in 2016, using the formula x * y = k to price assets via liquidity pools. This innovation eliminated order books in decentralized trading, becoming the backbone for modern DEXs.

3. Token & Governance

BNT serves as the governance token for BancorDAO, allowing holders to vote on protocol parameters, fee structures, and upgrades. The token also historically facilitated cross-chain liquidity via its v2.1 protocol, though recent developments focus on Carbon’s strategy-centric model.

Conclusion

Bancor combines MEV-resistant trading tools with a community-governed liquidity infrastructure. While its early AMM design reshaped DeFi, the project now faces the challenge of differentiating Carbon in a crowded DEX market. Will its focus on customizable on-chain strategies attract a new wave of algorithmic traders?