What is Bancor?
Bancor is a decentralized finance (DeFi) protocol that enables automated and decentralized exchange on Ethereum and other blockchains. Launched in 2017, Bancor was one of the first DeFi protocols and has since pioneered various innovations in the space.
Bancor operates as an automated market maker (AMM), utilizing its native BNT token as an intermediary in its liquidity pools. This design allows users to swap tokens seamlessly, with the protocol providing liquidity through a bonding curve formula, ensuring trades can be executed without a centralized order book.
Furthermore, Bancor is governed by its community through a decentralized autonomous organization (DAO). This structure allows BNT token holders to participate in decision-making processes, influencing the development and future direction of the protocol.