[ANN] Bancor | Protocol for Smart-tokens, solving the liquidity problem

[ICOcountdown.com]

Bancor has been added to http://icocountdown.com

Never miss a crowdsale again!

https://twitter.com/ICOcountdown/status/838849632117620738

 

[Ampex]

In that ways ICO dies, that understand people can learn any thing byself but it anouncing must have much more than name of project

[CjMapope]

him, interesting, Bancor protocol...

after viewing your website and whitepaper it seems you guys have "done your homework", Some serious thought about HOW to make it work for your project, i guess my only question is:  WILL it work? hmmm, might be worth finding out!

Good Luck moving forward, one to watch for sure this year! 

[eyal]

In that ways ICO dies, that understand people can learn any thing byself but it anouncing must have much more than name of project

We've also released the first draft of the Bancor Protocol Whitepaper: https://goo.gl/1WNx2l

You are invited to read it and comment.

[eyal]

I do not see what problem the Bancor project is attempting to solve. The double coincidence of wants was solved by money (fiat), and bitcoin is an extension of that. The white paper is not properly written.

I think that what you are referring to is the double coincidence in bartering goods, but from what i understand in the white paper they mean that Bancor solves the double coincidence when swapping money, as in you have dollars and want euro but to do that you would generally need someone on the other side willing to trade his euro for your dollar. i could be wrong tough!

That's accurate! In a sense, Bancor solves the DCoW problem for tokens, by enabling them to use other tokens.

Tokens hold other tokens in their reserve (using their smart-contract) and provide a conversion service between the token and its reserve/s, using the calculated rate as detailed in the whitepaper: https://goo.gl/1WNx2l

[eyal]

Cool, an innovative Bancor protocol that seems designed to deprive the exchanges serious share of the profits from the trade of various tokens. Will support this idea, especially if it will save time and money on the exchange of tokens. Developers, good luck, it will be interesting and useful project.

Thanks! I don't think the exchanges will go out of business so fast, as most of their ongoing operations are about dealing with deposits, withdrawals and regulations compliance, as the actual exchange is dealt by machines (which are paid no salaries.. )

In this sense, the exchanges are similar to ISPs as they provide a gateway between the existing digital-asset networks and the modern decentralized, blockchain-based networks.

[sotisoti]

Do you have a prototype or mvp for your project? Is there a github repo that is publicly accessible?

[eyal]

i already have one local coin for Ibiza that will want to use this protocol, our biggest problem was how to get liquidity in a simple way and bancor solves this elegantly

https://hippie.money

i'm sure there will be 1000's more to come!

Sounds exciting! Good luck with your project! We would love to have you as one of our first pilots. Feel free to contact us at contact|at|bancor.network. Best thing about it is that it could give us a good reason to visit Ibiza!

[eyal]

Do you have a prototype or mvp for your project? Is there a github repo that is publicly accessible?

We've published the pre-alpha version of the smart-contract code for review on our website. http://www.bancor.network

More stuff will be coming out very soon..

[eyal]

does this mean that Bancor is Token for exchange or token exchanger? 

Bancor is a protocol for token exchange, which is based on a new model where the price discovery is not based on the agreement between two parties, rather, it is based on an equilibrium-seeking model in which every purchase of a token increases its price, and every sale of a token decreases it. The price equilibrium point is the price-point in which the amount of buys and sales of the token are balanced. You can read more in our draft whitepaper (link)

[e-coinomist]

Maybe all this good idea, but for people need more information with images about your project

The image above, hippie money seems from another project first thought them to be kidding me.

I'm slacking behind the ANN how "algorithmically-calculated conversion rates" should work, and liquidity without trade volume, maybe the habits have grown to strong. Watching orderbooks all day, picking from buy or sell side, it is that simple. Could not tell you a fixed rate at any given point in time how could a formula do that? SMA or EMA kurves are followers only.
What/how/who/howmany of these reserve tokens will come into existance to fuel the exchange supply?
Honestly feeling like everybody in this thread, more questions than answers.

Any investment opportunity?

[ulhaq]

That's accurate! In a sense, Bancor solves the DCoW problem for tokens, by enabling them to use other tokens.

By tokens are you referring to cryptocurrencies like bitcoin, ethereum, dash? If so, they are freely tradable for each other already.

[eyal]

I'm slacking behind the ANN how "algorithmically-calculated conversion rates" should work, and liquidity without trade volume, maybe the habits have grown to strong. Watching orderbooks all day, picking from buy or sell side, it is that simple. Could not tell you a fixed rate at any given point in time how could a formula do that? SMA or EMA kurves are followers only.

Bancor offers a completely new method for price-discovery, which is possible only with programmable tokens that can hold other tokens, be issued/destroyed by their contract, and provide a public API to buy and sell them.

While in traditional exchanges the liquidity source is the market depth, and the price-discovery is based on the agreement between two independent parties -- with Bancor-tokens, the liquidity source is the reserve(s) and the price-discovery is based on the buy/sell history.

This means that whenever a Bancor-token is purchased from its contract (in exchange for a reserve token), new Bancor-tokens are issued and the unit price goes up relative to the reserve token. When a Bancor-token is sold (in exchange for a reserve token), the tokens are destroyed and reserve-token are transferred to the seller.

The price changes result from how the price is calculated, which is simply: UnitPrice=ReserveBalance / (TokenSupply * ReserveRatio). There are step-by-step examples in the whitepaper elaborating on this.

It's important to emphasize that this is how Bancor-tokens operate, however, reserve-tokens may be any ERC20 token, including Bancor-tokens, so the "Bancor Network" enable conversion between any two tokens (Bancor-tokens or reserve-tokens).

Bancor-tokens use this method of price discovery, in which the price is the result of the previous buys/sales of the Bancor-token. This creates a situation that when a token has high demand, the price will climb up until it reaches the point where sellers are encouraged to sell it, and buyers discouraged from buying it -- and the price will remain around that equilibrium point between buys and sales. This is very different from the way exchanges work, however, it has a similar behavior in which buying a token increases its price and vice-versa.  

What/how/who/howmany of these reserve tokens will come into existance to fuel the exchange supply?

The reserve token can be ETH, or DGX, or any other ERC20 token. These reserve tokens cannot issue themselves, so they do not "come into existence" . The initial reserve can be collected in a crowdsale of using a direct deposit, and will grow due to a strong demand for the token. The market-cap of the token will grow in parallel simply since the market-cap is calculated as ReserveBalance / ReserveRatio.

Any investment opportunity?

We are planning the crowdsale of BGTs (temporary name), which is detailed in the whitepaper as the first "genesis network token" (a Bancor-token which is to be used primarily as a reserve of other, user-created Bancor-tokens - enabling conversion between all of them)

We will provide additional details on the crowdsale soon.

For more info - read the whitepaper and review the Bancor smart-contract code at https://bancor.network

[eyal]

That's accurate! In a sense, Bancor solves the DCoW problem for tokens, by enabling them to use other tokens.

By tokens are you referring to cryptocurrencies like bitcoin, ethereum, dash? If so, they are freely tradable for each other already.

This would be like saying that since bread, milk and fish are freely tradable in an imaginary barter economy, there is no need for money in that economy to solve the DCoW problem.

Yes, these crypto-currencies are tradable, however, the high-barrier to liquidity makes it significantly harder to get new currencies to the point of high-liquidity, where the price-discovery process becomes reliable.

Bancor protocol solves that very problem, thanks to the new technologies which enable anyone to create programmable tokens (smart-contracts).

The very definition of DCoW is that two parties with opposing wants are required in order to complete a transaction. Exchanges merely deal with this problem, but by no mean they are solving it like money did for barter.

[magpr]

does this mean that Bancor is Token for exchange or token exchanger? 

Bancor is a protocol for token exchange, which is based on a new model where the price discovery is not based on the agreement between two parties, rather, it is based on an equilibrium-seeking model in which every purchase of a token increases its price, and every sale of a token decreases it. The price equilibrium point is the price-point in which the amount of buys and sales of the token are balanced. You can read more in our draft whitepaper (link)

A very interesting and innovative solution, for the first time I encounter such an approach, I look forward to the implementation of Bancor protocol and the launch of the decentralized exchange running on it.

[bancornetwork]

Coin Interview with Bancor Network

https://www.youtube.com/watch?v=Ognx-LWCyfg

[Crypto_NX]

when ico starting?

[whatsTheDeal]

ah nice updated post very informative!

[bancornetwork]

when ico starting?

We will make an announcement about this in the next few weeks.

[ninjabiz]

It looks like a good project, do you plan to use escrow? Please tell us more information soon, I am interested in your campaign.