Why is Bancor (BNT) protocol gaining attention?

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Why is Bancor (BNT) protocol gaining attention?

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 Why is Bancor (BNT) protocol gaining attention?
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Highlights

  • Bancor (BNT) is a decentralized trading protocol. 
  • BNT token got listed on the Binance US crypto exchange on April 25.
  • BNT has an elastic supply, and the protocol mints and burns tokens to maintain the liquidity levels in the pool. 

The Bancor (BNT) token surged after being listed on the Binance US crypto exchange on April 25. On Tuesday, the BNT token deposits opened at 8:00 am EDT, and the trading began 24 hours later with the "Buy Crypto" functionality.

The Bancor 3 Beta went live on April 19. The company plans a full release in May. On April 23, its total value locked (TVL) reached more than US$1 million across BNT, ETH, DAI, and LINK.

These developments added to the interest in BNT. Bancor 3 introduces a new Omnipool architecture to simplify the protocol’s contracts and increase efficiency at every touchpoint with Unlimited Single-Sided Staking, Auto-Compounding Rewards, Instant Impermanent Loss Protection, and more. 

On Wednesday, riding high on these updates, Bancor (BNT) traded 1744% up from its all-time low of US$0.120935 in March 2020.

What Is Bancor (BNT)?

Bancor is a decentralized trading protocol that empowers traders, liquidity providers and developers to participate in the open financial marketplace. Also, no permission is required for entry as the protocol is open source. The protocol was launched in 2017. It claims to be the first DeFi protocol. 

The protocol is designed to limit the effects of impermanent loss. The impermanent loss occurs when the asset price fluctuates after principal assets are deposited into the liquidity pool. 

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The protocol generates millions in fees per month for depositors by offering APR up to 60% on ETH, LINK, MATIC, AAVE etc. Its community owns the protocol, a decentralized autonomous organization named Bancor DAO. 

Also Read: Is Polygon (MATIC) crypto gaining attention on Stripe news?

Data Source: coinmarketcap.com

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BNT token:

BNT is an ERC-20 token used to insure against impermanent loss.  

The protocol’s token enables traders to provide liquidity to the network where anyone can contribute to the pool. The liquidity providers are eligible to receive fees for providing liquidity for trades that pass through the pool.  Bancor incentivizes liquidity providers for staking assets on its decentralized exchange. 

The Bancor Network Token (BNT) has an elastic supply, and the protocol mints and burns tokens to maintain the liquidity levels in the pool. 

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This 115th ranked token by market capitalization has 37,828 holders, as per coinmarketcap.com. Its current market capitalization is US$585.23 million. 

In the last 24 hours, Bancor (BNT) rose 3.51% to US$2.23 at 8:51 am ET Tuesday, and 24 hours volume rose 31.70% to US$26.75 million. Its circulating supply is 262.26 BNT out of the total supply of 262.26 million.

The token touched the all-time high at US$10.72 in January 2018.

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Bottom line:

The token can be traded in crypto exchange like Binance, Bybit, FTX, Bitget, and OKX.

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