Bancor Protocol
I want to represent you the Bancor protocol. With its help, endless liquidity and asynchronous price determination for tokens through their Smart contracts have become real.
The exchange model for the crypto currency, which exists today in its classical form, has a barrier with which the use of the exchange rate set by the market for small-scale and new crypto-currencies is impossible. The Bancor protocol represents a solution to this problem.
The Bancor protocol uses ERC20 tokens, it provides endless liquidity and automatically facilitates price determination. On the balance of a smart token, there is always at least one of the backup tokens. They are issued at their purchase and destroyed when they are liquidated, on this basis, you can always purchase a smart token using its backup token. The token is also cleared in exchange for its standby token, using the
current price.
Advantages of smart tokens:
- Ensuring endless liquidity.
- No additional commissions.
- The absence of a spread, due to the fact that the calculation of the price is made with the help of smart contracts - automatically.
- Predictable price change. Based on the size of the transaction, smart tokens allow you to calculate the exact price of price slip.
- Reducing volatility. A smart token with 10% CRR, is comparable to a stock exchange, in which 10% of the total stock of a token is constantly written in the order book, forming a significant depth of the market. While on a typical crypto-exchange, the share of volume in the depth of the market is much less than 1%.
Join Bancor, for more details on the links:
Website: https://bancor.network/
Twitter: https://twitter.com/bancornetwork
Facebook: https://www.facebook.com/bancor
Github: https://github.com/bancorprotocol/contracts
BitcoinTalk: https://bitcointalk.org/index.php?topic=1789222.0