Bancor | Sleeping Giant | Solid Team and Fundamentals
Ichimoku 4 hr has went bullish
Bottomed out
Good buy / investment here
What is Bancor?
Answer: Bancor a smart programmable token protocol with a built in automated market maker. Summary abstract from Bancor whitepaper.
The Bancor protocol enables built-in price discovery and a liquidity mechanism for tokens on smart contract blockchains. These “smart tokens” hold one or more other tokens in reserve, and enable any party to instantly purchase or liquidate the smart token in exchange for one of its reserve tokens, directly through the smart token’s contract, at a continuously calculated price, according to a formula which balances buy and sell volumes.”
In simple terms: the Bancor protocol is a smart-contract-based token conversion protocol, providing instant liquidity & price discovery, with no counterparty risk.
To better understand the details behind the Bancor idea from world economist John Maynard Keynes here is a synopsis from Economist and author Ann Pettifor, “The idea behind Bancor, is a global central bank that would offer countries a form of overdraft and enable countries to overcome a shortfall in income to pay off their debts on imports but what Keynes also hoped to do through this international clearing union, was to balance accounts in surplus and deficits, and Keynes was concerned that that balance should be maintained. There should not be vast imbalances in global markets because it could very threatening and destabilizing to financial, political and social stability.”
One thing worth noting is the definition of a “smart token” based on Eyal Hertzog, co-founder of Bancor, “A smart token, is a programmable token, and uses the Bancor protocol and that holds one or more other tokens, in its reserve. And it can manage this reserve in a way that it sets a price and sells itself in exchange for the reserve currency or vice versa. It would buy its own units and payout in the reserve currency in exchange for that. So you buy the smart token from the smart token itself/ smart contract and you sell the smart token to the smart token itself through the smart contract. And whenever you buy the price goes up and whenever you sell the price goes down.”
The major problems that Bancor solves are:
Provide instant/immediate liquidity through one liquidity pool
Built in price discovery
Reduce/Eliminate counterparty risk
“Smart tokens” hold one or more other tokens in reserve, i.e. decentralized baskets
Create cross community driven interoperability smart token
Prices are calculated by the smart token so buys and sells use the same current price, thus there is no spread.
Price slippage is pre-calculated relative to transaction size and incorporated into current price and as a result there is a predictable price slippage.
Provide instant/immediate liquidity through one liquidity pool
The ability to provide “liquid generated user currencies” is achieved by the use of smart contracts.
The “liquid mechanism” is done by including the buy and sell orders into the smart tokens as well as using the third-party arbitrage system inside smart tokens to handle any additional rules set by the token creators.
Smart tokens are standard ERC20 tokens which implement the Bancor protocol, providing.
continuous liquidity while automatically facilitating price-discovery. The smart token’s contract instantly processes buy and sell orders, which drive the price-discovery process. Due to this capability, smart tokens do not need to be traded in an exchange in order to become liquid.
A smart token holds a balance of least one other reserve token, which (currently) can be a different smart token, any ERC20 standard token or Ether. Smart tokens are issued when purchased and destroyed when liquidated, therefore it is always possible to purchase a smart token with its reserve token, as well as to liquidate a smart token to its reserve token, at the current price.
Double coincidence of wants is an issue that exists in crypto-currencies as buyers
Bottomed out
Good buy / investment here
What is Bancor?
Answer: Bancor a smart programmable token protocol with a built in automated market maker. Summary abstract from Bancor whitepaper.
The Bancor protocol enables built-in price discovery and a liquidity mechanism for tokens on smart contract blockchains. These “smart tokens” hold one or more other tokens in reserve, and enable any party to instantly purchase or liquidate the smart token in exchange for one of its reserve tokens, directly through the smart token’s contract, at a continuously calculated price, according to a formula which balances buy and sell volumes.”
In simple terms: the Bancor protocol is a smart-contract-based token conversion protocol, providing instant liquidity & price discovery, with no counterparty risk.
To better understand the details behind the Bancor idea from world economist John Maynard Keynes here is a synopsis from Economist and author Ann Pettifor, “The idea behind Bancor, is a global central bank that would offer countries a form of overdraft and enable countries to overcome a shortfall in income to pay off their debts on imports but what Keynes also hoped to do through this international clearing union, was to balance accounts in surplus and deficits, and Keynes was concerned that that balance should be maintained. There should not be vast imbalances in global markets because it could very threatening and destabilizing to financial, political and social stability.”
One thing worth noting is the definition of a “smart token” based on Eyal Hertzog, co-founder of Bancor, “A smart token, is a programmable token, and uses the Bancor protocol and that holds one or more other tokens, in its reserve. And it can manage this reserve in a way that it sets a price and sells itself in exchange for the reserve currency or vice versa. It would buy its own units and payout in the reserve currency in exchange for that. So you buy the smart token from the smart token itself/ smart contract and you sell the smart token to the smart token itself through the smart contract. And whenever you buy the price goes up and whenever you sell the price goes down.”
The major problems that Bancor solves are:
Provide instant/immediate liquidity through one liquidity pool
Built in price discovery
Reduce/Eliminate counterparty risk
“Smart tokens” hold one or more other tokens in reserve, i.e. decentralized baskets
Create cross community driven interoperability smart token
Prices are calculated by the smart token so buys and sells use the same current price, thus there is no spread.
Price slippage is pre-calculated relative to transaction size and incorporated into current price and as a result there is a predictable price slippage.
Provide instant/immediate liquidity through one liquidity pool
The ability to provide “liquid generated user currencies” is achieved by the use of smart contracts.
The “liquid mechanism” is done by including the buy and sell orders into the smart tokens as well as using the third-party arbitrage system inside smart tokens to handle any additional rules set by the token creators.
Smart tokens are standard ERC20 tokens which implement the Bancor protocol, providing.
continuous liquidity while automatically facilitating price-discovery. The smart token’s contract instantly processes buy and sell orders, which drive the price-discovery process. Due to this capability, smart tokens do not need to be traded in an exchange in order to become liquid.
A smart token holds a balance of least one other reserve token, which (currently) can be a different smart token, any ERC20 standard token or Ether. Smart tokens are issued when purchased and destroyed when liquidated, therefore it is always possible to purchase a smart token with its reserve token, as well as to liquidate a smart token to its reserve token, at the current price.
Double coincidence of wants is an issue that exists in crypto-currencies as buyers