Bancor is a crypto project born in mid-2017.
Its name evokes the famous “international currency unit” proposed by John Maynard Keynes during the Bretton Woods conference.
The Bancor proposed by Keynes was intended to be an interbank currency only, serving merely as a unit of account to calculate the net trade position between nations. Keynes’ idea was to create a sort of clearing system for world trade after the end of World War II.
The Keynesian bancor never materialized, although the International Monetary Fund later took up the basic idea after the great financial crisis of 2007/2008 but envisioned using its Special Drawing Rights (SDR).
Bancor Network (BNT) crypto
That Bancor Network The project was launched in 2017 with its BNT token.
BNT is not a cryptocurrency in the narrower sense, as it does not have its own blockchain. In fact, it is an ERC-20 token on Ethereum.
Bancor was born in 2017 with an ICO aimed at creating a decentralized liquidity network to make it possible to hold any Ethereum token in P2P mode and convert it to any other token on the same network, i.e. without relying on a third party to have to, and with automatically calculated prices and a simple wallet.
Instead, this was not the case as the project already started taking a different direction in 2018-2019.
In fact, it became a DeFi trade over time and Mark out Protocol with unilateral liquidity.
The base of the project is the Bancor DAO, whose mission is to make DeFi mainstream by providing the easiest and most secure way act and earn passive income.
In fact, one of the first Automated Market Maker (AMM) liquidity pools was developed by Bancor in 2017, so many of the DeFi protocols to this day are inspired by this work.
Currently, the Bancor protocol generates profits for depositors, promise up to 30% APRto 70+ tokens including ETH, WBTC, LINK, MATIC, AAVE and others.
Additionally, Bancor is the treasury and liquidity management solution used by dozens of DAOs including Polygon, Synthetix, UMA, Paraswap, Nexus Mutual, KeeperDAO, BarnBridge, and WOO Network DAO.
The BNT token
The BNT token has had two major bull runs and two severe bear markets.
It hit the market in mid-2017 at just under $3, and although it had already fallen below $2 by November of that year, it peaked at over $10 in January of the following year.
On the other hand, in late 2017 and early 2018, there was a major speculative bubble that formed on several altcoins, including ETH, with truly notable gains.
But that bubble then burst, so much so that by April 2018 the price of BNT had already fallen to $2.2.
The decline continued through December when it even fell below $0.5 and then, after a small recovery in early 2019, it plummeted to $0.2 in January 2020.
By then, the cumulative loss was 93% of the original placement price and even 98% of the all-time high.
In 2021 there was the second big bull run.
By November 2020 it had already risen to around $0.6, but in March 2021 it fell to as low as $9, which was just below the all-time high of three years earlier.
Already in May of this year, the price started falling again, reaching $2.6 in July 2021. The price of BNT did not increase at the end of 2021 and in fact had already fallen to $2.3 by January 2022, which was $2.1 in March.
However, the real collapse came after the Terra/Luna ecosystem imploded in May of this year, when it fell first to $1.4 and then to $0.5 in June.
The current price below $0.4 is in line with 2019 but above the 2020 lows. Notably, it is 96% below the January 2018 high but 216% above the March 2020 low.
It is therefore a decidedly volatile token in the medium to long term, while not being particularly volatile in the short term.
Bancor crypto project roadmap
In theory, the development of the project is not yet complete, especially since it is dedicated to version 2.0 DeFi is currently active and evolving.
Version 2.1 was launched in October 2020 after the first had bottomed out and it was a radical change in providing liquidity to AMMs with “fickle loss protection”.
They are currently working on Bancor 3, the third version of the protocol, which will also be Bancor’s biggest proposed update to date. It will introduce a new architecture that reduces gas costs and increases the efficiency of the protocol.
Bancor 3 will be implemented in three different phases called Dawn, Sunrise and Daylight. Dawn will already address the major friction points of the protocol, but it will only be the beginning of what is to come in the later Sunrise and Daylight phases.
The DAO
The Bancor Network DAO is behind this project.
In fact, the Bancor protocol is governed with a democratic and transparent voting system that allows all stakeholders to participate.
The governance token is vBNT, which is the token obtained by staking BNT tokens.
The future
The Bancor project already seems to have had two lives, the first of which is finished and the second may be nearing completion, but with the third version of the protocol it may well have a third.
Last but not least, the project has shown that it is able to adapt to changing times and, above all, to use trends in order not to die.
Its future is uncertain, as is the future of many DeFi projects after last year’s boom and this year’s implosion. But the technology they’re based on nonetheless seems destined to stay.
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