Nowadays, the decentralized finance (DeFi) sphere can boast a wide range of various platforms – over several past years, they’ve been competing every day to outdo each other from the perspective of innovation, ease of user access, and opening up the DeFi world to everyone. Currently, there are already both on the market – universally recognized leaders and newcomers that are just getting ready for a powerful rise. The Bancor (BNT) platform is one of them, and we’re sure it’ll definitely surprise you.
What is actually Bancor? How does it work? Where’s it better to exchange BAT right now? If you’d like to get the answers to all of those questions, you’ve come to the right place – today’s guide will tell you everything you need to know about the Bancor token and its own platform. In addition, we’ll provide you with a small step-by-step guide on how to make a BAT swap, using our smart Droidex aggregator. So just read carefully, and let’s get started!
What is a Bancor coin?
Bancor is one of the most high-efficiency DeFi platforms on the market, which has its own coin – BNT – that acts as a commission-free smart-token exchange protocol. The platform constantly demonstrates an exponential growth of interest behind it. In simple terms, Bancor is a decentralized exchange (DEX) and automated market maker (AMM), through which investors can exchange ERC-20 tokens.
Bancor was developed in 2017 by a group of three people: Eyal Hertzog, Galia Benartzi, and Guy Benartzi. According to the white paper, Bancor “includes automatic price determination and an autonomous liquidity mechanism for smart-contract blockchain tokens.”
What problem does Bancor solve? First of all, cryptocurrency Bancor aims to eliminate the lack of liquidity in the cryptocurrency market. Yes, low liquidity isn’t such a big problem for digital currencies with large market capitalization. For example, Bitcoin (BTC), Ethereum (ETH), and Polkadot (DOT) haven’t suffered from this for a long time. However, for other small-cap coins, it’s a serious problem.
A token’s liquidity is determined by the balance of supply and demand. A cryptocurrency, such as Bitcoin, can easily be bought/sold in large volumes on any cryptocurrency exchange without significant price changes. Conversely, a person who trades little-known tokens will find it challenging to buy or sell a token on the market due to a lack of trading activity, especially if the process involves the execution of high volume.
Bancor’s vision is to extend the liquidity veil over these low-liquidity coins – it’ll unlock their potential and realize their value.
How Bancor works
Bancor aims to fix the problem of low liquidity with its self-executing smart contracts with minimal transaction costs.
A Bancor smart contract includes transaction terms between buyer and seller written in code. For any transaction on a centralized (CEX) or decentralized (DEX) exchange to be successful, there must be a token transfer between at least two parties. During this transaction, the buyer and seller act as market makers.
In addition, a crypto exchange on Bancor doesn’t inherently involve a tokens swap with a second party, which is typically practiced on CEXs like Binance, Coinbase, Kraken, and others. Instead, the protocol uses smart tokens to convert between different ERC-20 within the platform. Such conversions are completely devoid of any human intervention, as they rely on code lines, underlying the basic blockchain architecture.
How to exchange Bancor?
If you’re going to make a Bancor swap, we’d like to draw your attention to one of the best platforms to do this – the Droidex aggregator that offers its users the quickest and safest swaps, as well as the best rates among the major decentralized exchanges.
Why choose Droidex? Here are the main advantages that prove the excellence of the platform:
- The best rates. Droidex connects to the most popular decentralized exchanges, such as Uniswap, Kyber, Curve, PancakeSwap, and others.
- Gas optimizations. Its team makes every effort to find the best prices for users, including distributing their orders among many decentralized exchanges.
- Exchange routing. To avoid overengineering the route, Droidex pathing logic accounts for the gas costs of any suggested step.
Want to avoid any difficulties while swapping Bancor? Below you’ll find our small step-by-step guide that explains to you how to make a transaction quickly and safely in 8 simple steps. So be attentive and follow all the instructions accurately. Good luck!
1. First of all, you need to visit Droidex’s official website – droidex.io – and click “Start Swap”.
2. After that, choose Ethereum blockchain, if you want to swap BNT tokens.
3. Select tokens – for example, BNT and DAI.
4. Then, enter the number of tokens – let it be 1000. After that, press “Connect Wallet”.
5. Choose and connect the wallet – for example, MetaMask.
6. Next, tap “Swap”.
7. Finally, click “Confirm Swap”.
- Congratulations! Get your tokens!
Thanks to our guide, you’ve got a full understanding of how the Bancor system works and where it’s better to exchange its tokens. You can see that the process of Bancor crypto swap is quite simple, and the platform itself is considered one of the most fast-paced and secure among the major decentralized exchanges. Just bear in mind one essential thing: if you’ll face any difficulties connected with the Bancor swap exchange or something else, you can always come back to this article and brush up on your knowledge – the answers to all of your questions can be found right here. Thank you for reading!