Bancor Protocol is a standard for the creation of intrinsically tradeable cryptocurrencies

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What is the Bancor Protocol?

Bancor Protocol is the standard for the creation of Smart Tokens, beginning on the Ethereum blockchain. At its most basic, the Protocol is an ERC-20 compliant smart-contract, in which a new token can hold one or more other tokens in its reserve at a pre-set “Constant Reserve Ratio” (CRR). A detailed overview of the Bancor Protocol and its implications is available in the most recent Draft Whitepaper below.

English White Paper →
Chinese White Paper →

Use Cases for the Protocol

The Bancor Protocol provides a simple and powerful building block for developers and non-technical users alike to create new types of monetary systems, applications, currency networks and tokens not previously possible, all through the use of token reserves and smart-contracts with the ability to automatically issue and destroy themselves according to a formula. Value can be recognized, stored and moved in ways never seen before.

  • Local and Group Currencies

    Bancor enables the long-tail of user-generated tokens. Tokens achieve instant viability and continuous liquidity, regardless of trade volume. Groups of any kind can define custom policies.
  • Token Baskets

    By enabling multiple tokens to be held in reserve at a 100% ratio, the Protocol allows for creation of decentralized Token Baskets (Exchange Traded Funds) owned directly by their holders. Token creators define custom policies.
  • Autonomous Exchange

    Bancor trading nodes can be created to hold, transfer and convert any token to another at any time, with no bid/ask spread. Remove counterparty risk and maintain predictable price slippage, for lower volatility tokens.

Bancor Smart Contracts

Smart Tokens are a new type of always-liquid token, managed by a smart-contract which issues and destroys itself according to a transparent formula. Bancor contracts are written in Solidity and tested by the industry's top security auditors. The current code is available for review below.

View on Github
  • Token Creation
  • Token Conversion

The BANCOR Network Token

The BANCOR token is the first and default network token issued by the Bancor Protocol Foundation. New Smart Tokens can use BANCOR as one of their reserve currencies in order to join the Bancor Network and benefit from increased stability and the appreciation of any token(s) in the network. As the world’s first reserve token of its kind, BANCOR encapsulates all credit created on the Network.

Continuous Liquidity

For all Smart Tokens and all tokens held as reserves. Conversion rates are algorithmically calculated.

No Counterparty Risk

Popular exchanges such as MtGox and Bitfinex have been hacked with hundreds of millions worth of BTC stolen from their accounts.

No Extra Fees

The only fees applied with Bancor are the blockchain platform fees (beginning with Ethereum, soon on Bitcoin via RSK).

No Spread

Price calculations are done automatically by the smart-contract, so the same conversion rate applies for purchasing and selling tokens.

Predictable Price Slippage

The Protocol allows pre-calculation of the precise price slippage (change in price as a result of the transaction size itself), before the conversion is executed.

Lower Volatility

Obtained by maintaining constant reserves which provide the liquidity, rather than relying on external, independent market makers.