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

[graviteta]

we are waiting official ico details announcement

[1715058405]

1715058405

[temmuz]

When will the official announcement about the delay happen?

[rkat55]

I am seriously considering investing in Bancor, but I have this nagging question in my head that hasn't been answered yet:

How is Bancor's token any different than any other token? Are the following statements accurate:

1. You buy it with another ERC20 token. Now you have Bancor token.

2. You sell Bancor, use it or hodl.

3. Bancor's price goes up or down based on the buy and sell ratio of Bancor.

Bancor presumably answers the liquidity issue, but what makes Bancor liquid? Isn't it the same as what makes any token liquid, buys and sells?

Not fudding at all, I want to invest! Please help me understand.

[thepo1m]

I hope this won't be like wings ICO last year, that was postponed for many months and ended up raising 2000+BTC. ICO is all about timing, the team need to get this right

[Razaberry]

I am seriously considering investing in Bancor, but I have this nagging question in my head that hasn't been answered yet:

How is Bancor's token any different than any other token? Are the following statements accurate:

1. You buy it with another ERC20 token. Now you have Bancor token.

2. You sell Bancor, use it or hodl.

3. Bancor's price goes up or down based on the buy and sell ratio of Bancor.

Bancor presumably answers the liquidity issue, but what makes Bancor liquid? Isn't it the same as what makes any token liquid, buys and sells?

Not fudding at all, I want to invest! Please help me understand.

So the BANCOR token will be the first of the smart tokens. What makes it liquid is the exact same thing that makes every other smart token liquid: namely that when you are buying/selling smart tokens to the smart tokens' contract, the contract itself is the entity that is selling/buying.

Up until Bancor, the only way to sell is if you can find a buyer who wants to buy what you're selling at the price you're selling it. With the Bancor protocol, the smart tokens' contract is always available to buy from and sell to.

[rkat55]

I am seriously considering investing in Bancor, but I have this nagging question in my head that hasn't been answered yet:

How is Bancor's token any different than any other token? Are the following statements accurate:

1. You buy it with another ERC20 token. Now you have Bancor token.

2. You sell Bancor, use it or hodl.

3. Bancor's price goes up or down based on the buy and sell ratio of Bancor.

Bancor presumably answers the liquidity issue, but what makes Bancor liquid? Isn't it the same as what makes any token liquid, buys and sells?

Not fudding at all, I want to invest! Please help me understand.

So the BANCOR token will be the first of the smart tokens. What makes it liquid is the exact same thing that makes every other smart token liquid: namely that when you are buying/selling smart tokens to the smart tokens' contract, the contract itself is the entity that is selling/buying.

Up until Bancor, the only way to sell is if you can find a buyer who wants to buy what you're selling at the price you're selling it. With the Bancor protocol, the smart tokens' contract is always available to buy from and sell to.

But is it actually buying my token or am I just trading my token for a Bancor token? Bancor tokens will have to be liquid themselves in order for me to buy/sell them. I'm having a problem identifying the difference unless I'm stuck with a token that has absolutely no liquidity itself in which case how does it help Bancor's token? I'm not seeing how this is any better than trading on an exchange and choosing any token/coin I want.

[alexi8]

I hope this won't be like wings ICO last year, that was postponed for many months and ended up raising 2000+BTC. ICO is all about timing, the team need to get this right

You're making a very valid point. I call them 'The Missing Link' and it will be sad to see such a major breakthrough undervalued.

[lhdpfk]

I just heard about this project and read the white paper! It sounds amazing! 
Is joining the bounty campaign still possible?

[yvv]

when tokens are traded on the exchange relative to BTC, understandable pricing mechanism. is the flagship and the others were compared. Here, we propose the creation of crosscourse. Prices will be based on courses that are on the exchanges? If so , then not all tokens are liquid and the prices of some are very different in the exchanges, will average?

The network will only work with tokens which are received by smart contracts on everyone, crosscourse to zec, litecoin, Dash will not be used? what will happen to the tokens of other platforms different from etherium?

If I understand you're question correctly, you're asking how the inevitable price differences between smart tokens internal prices & their prices on exchanges.

The answer is the same as the solution to price differences between exchanges: arbitrage bots. When there is profit to be made by a difference in price, these bots automatically come and make trades until they've evened out the prices (and so it is no longer profitable).

To be clear: smart tokens' contracts can buy/sell themselves. No second party needed. That is how every single currency on the network can be fully liquid from day one.

Yeah, right, but since you are going to run a fractional reserve, actual liquidity is going to limited by initial supply. For example, at 20% reserve ratio change in supply by a factor of 2 in either direction will change the price by a factor of 4. This will limit the amount of tokens we will actually be able to buy or sell at reasonable price. Liquidity would be really infinite in two cases: either the initial supply is very large; or reserve ratio is close to 1.

[yvv]

I am seriously considering investing in Bancor, but I have this nagging question in my head that hasn't been answered yet:

How is Bancor's token any different than any other token? Are the following statements accurate:

1. You buy it with another ERC20 token. Now you have Bancor token.

2. You sell Bancor, use it or hodl.

3. Bancor's price goes up or down based on the buy and sell ratio of Bancor.

Bancor presumably answers the liquidity issue, but what makes Bancor liquid? Isn't it the same as what makes any token liquid, buys and sells?

Not fudding at all, I want to invest! Please help me understand.

So the BANCOR token will be the first of the smart tokens. What makes it liquid is the exact same thing that makes every other smart token liquid: namely that when you are buying/selling smart tokens to the smart tokens' contract, the contract itself is the entity that is selling/buying.

Up until Bancor, the only way to sell is if you can find a buyer who wants to buy what you're selling at the price you're selling it. With the Bancor protocol, the smart tokens' contract is always available to buy from and sell to.

But is it actually buying my token or am I just trading my token for a Bancor token? Bancor tokens will have to be liquid themselves in order for me to buy/sell them. I'm having a problem identifying the difference unless I'm stuck with a token that has absolutely no liquidity itself in which case how does it help Bancor's token? I'm not seeing how this is any better than trading on an exchange and choosing any token/coin I want.

They will hold the reserve in ETH to make us able to buy or sell bancor. It does not need to be listed on any exchange for this.

[Razaberry]

when tokens are traded on the exchange relative to BTC, understandable pricing mechanism. is the flagship and the others were compared. Here, we propose the creation of crosscourse. Prices will be based on courses that are on the exchanges? If so , then not all tokens are liquid and the prices of some are very different in the exchanges, will average?

The network will only work with tokens which are received by smart contracts on everyone, crosscourse to zec, litecoin, Dash will not be used? what will happen to the tokens of other platforms different from etherium?

If I understand you're question correctly, you're asking how the inevitable price differences between smart tokens internal prices & their prices on exchanges.

The answer is the same as the solution to price differences between exchanges: arbitrage bots. When there is profit to be made by a difference in price, these bots automatically come and make trades until they've evened out the prices (and so it is no longer profitable).

To be clear: smart tokens' contracts can buy/sell themselves. No second party needed. That is how every single currency on the network can be fully liquid from day one.

Yeah, right, but since you are going to run a fractional reserve, actual liquidity is going to limited by initial supply. For example, at 20% reserve ratio change in supply by a factor of 2 in either direction will change the price by a factor of 4. This will limit the amount of tokens we will actually be able to buy or sell at reasonable price. Liquidity would be really infinite in two cases: either the initial supply is very large; or reserve ratio is close to 1.

Actually, the supply can be (and for most smart tokens, we think it will be) much smaller than 20%. The reason that smart tokens can still be liquid with tiny reserves is that, when you buy/sell a smart token (or its reserve tokens) the price is calculated as if you sold an infinitely large amount of micro transactions that equal the same total amount. For every micro transaction you do, the price for the next goes up (as with every supply/demand system). So if supply were to grow smaller, the price of each smart token would decrease proportionally. The token would stay liquid, it would just decrease in value.

If demand were such that the price is no longer 'reasonable' to enough people, demand would go down and said price would stop rising (or fall, if demand went low enough that there are now more people selling than buying). In other words, the price of a smart token is kept reasonable by the market, like any other freely traded commodity.

[Razaberry]

I am seriously considering investing in Bancor, but I have this nagging question in my head that hasn't been answered yet:

How is Bancor's token any different than any other token? Are the following statements accurate:

1. You buy it with another ERC20 token. Now you have Bancor token.

2. You sell Bancor, use it or hodl.

3. Bancor's price goes up or down based on the buy and sell ratio of Bancor.

Bancor presumably answers the liquidity issue, but what makes Bancor liquid? Isn't it the same as what makes any token liquid, buys and sells?

Not fudding at all, I want to invest! Please help me understand.

So the BANCOR token will be the first of the smart tokens. What makes it liquid is the exact same thing that makes every other smart token liquid: namely that when you are buying/selling smart tokens to the smart tokens' contract, the contract itself is the entity that is selling/buying.

Up until Bancor, the only way to sell is if you can find a buyer who wants to buy what you're selling at the price you're selling it. With the Bancor protocol, the smart tokens' contract is always available to buy from and sell to.

But is it actually buying my token or am I just trading my token for a Bancor token? Bancor tokens will have to be liquid themselves in order for me to buy/sell them. I'm having a problem identifying the difference unless I'm stuck with a token that has absolutely no liquidity itself in which case how does it help Bancor's token? I'm not seeing how this is any better than trading on an exchange and choosing any token/coin I want.

They will hold the reserve in ETH to make us able to buy or sell bancor. It does not need to be listed on any exchange for this.

I'm not sure I understand the difference between buying a token with another token and trading a token for another token. If you were to buy BANCOR from the smart contract, you would send your ETH to the smart contract (which would be added to its reserve) and the smart contract would mint new BANCOR tokens (at the price it calculated at time of trade) and send them to you.

Like I said, Bancor tokens are liquid the same way every other smart token is liquid. The smart tokens' contract is the thing you are trading with (as opposed to exchanges where you have to be matched with another party to make a trade). That is why it is always liquid.

The biggest reason that Bancor is better than exchanges is that EVERY conceivable currency in the world, even small ones like community currencies and loyalty points and in-game currencies, will be fully liquid. Exchanges only make currencies with high trading volumes liquid. With Bancor, the long-tail of currencies can be created (alike to how youtube enabled the long tail of videos, how Instagram enabled the long tail of photography, etc.).

There's also the fact that trading on Bancor will be cheaper than on exchanges (no/low fees), that you can create smart tokens that serve as token baskets (kind of like ETFs), and that it is decentralized and therefore cannot be DDoS'd or otherwise easily attacked.

[yvv]

when tokens are traded on the exchange relative to BTC, understandable pricing mechanism. is the flagship and the others were compared. Here, we propose the creation of crosscourse. Prices will be based on courses that are on the exchanges? If so , then not all tokens are liquid and the prices of some are very different in the exchanges, will average?

The network will only work with tokens which are received by smart contracts on everyone, crosscourse to zec, litecoin, Dash will not be used? what will happen to the tokens of other platforms different from etherium?

If I understand you're question correctly, you're asking how the inevitable price differences between smart tokens internal prices & their prices on exchanges.

The answer is the same as the solution to price differences between exchanges: arbitrage bots. When there is profit to be made by a difference in price, these bots automatically come and make trades until they've evened out the prices (and so it is no longer profitable).

To be clear: smart tokens' contracts can buy/sell themselves. No second party needed. That is how every single currency on the network can be fully liquid from day one.

Yeah, right, but since you are going to run a fractional reserve, actual liquidity is going to limited by initial supply. For example, at 20% reserve ratio change in supply by a factor of 2 in either direction will change the price by a factor of 4. This will limit the amount of tokens we will actually be able to buy or sell at reasonable price. Liquidity would be really infinite in two cases: either the initial supply is very large; or reserve ratio is close to 1.

Actually, the supply can be (and for most smart tokens, we think it will be) much smaller than 20%. The reason that smart tokens can still be liquid with tiny reserves is that, when you buy/sell a smart token (or its reserve tokens) the price is calculated as if you sold an infinitely large amount of micro transactions that equal the same total amount. For every micro transaction you do, the price for the next goes up (as with every supply/demand system). So if supply were to grow smaller, the price of each smart token would decrease proportionally. The token would stay liquid, it would just decrease in value.

If demand were such that the price is no longer 'reasonable' to enough people, demand would go down and said price would stop rising (or fall, if demand went low enough that there are now more people selling than buying). In other words, the price of a smart token is kept reasonable by the market, like any other freely traded commodity.

A price of your token is a power law of its supply relative to initial supply. You need to have a fairly large initial supply if you don't want the price to raise/drop by crazy amount after each trade, unless your reserve ration is close to 1.

[rkat55]

I am seriously considering investing in Bancor, but I have this nagging question in my head that hasn't been answered yet:

How is Bancor's token any different than any other token? Are the following statements accurate:

1. You buy it with another ERC20 token. Now you have Bancor token.

2. You sell Bancor, use it or hodl.

3. Bancor's price goes up or down based on the buy and sell ratio of Bancor.

Bancor presumably answers the liquidity issue, but what makes Bancor liquid? Isn't it the same as what makes any token liquid, buys and sells?

Not fudding at all, I want to invest! Please help me understand.

So the BANCOR token will be the first of the smart tokens. What makes it liquid is the exact same thing that makes every other smart token liquid: namely that when you are buying/selling smart tokens to the smart tokens' contract, the contract itself is the entity that is selling/buying.

Up until Bancor, the only way to sell is if you can find a buyer who wants to buy what you're selling at the price you're selling it. With the Bancor protocol, the smart tokens' contract is always available to buy from and sell to.

But is it actually buying my token or am I just trading my token for a Bancor token? Bancor tokens will have to be liquid themselves in order for me to buy/sell them. I'm having a problem identifying the difference unless I'm stuck with a token that has absolutely no liquidity itself in which case how does it help Bancor's token? I'm not seeing how this is any better than trading on an exchange and choosing any token/coin I want.

They will hold the reserve in ETH to make us able to buy or sell bancor. It does not need to be listed on any exchange for this.

I'm not sure I understand the difference between buying a token with another token and trading a token for another token. If you were to buy BANCOR from the smart contract, you would send your ETH to the smart contract (which would be added to its reserve) and the smart contract would mint new BANCOR tokens (at the price it calculated at time of trade) and send them to you.

Like I said, Bancor tokens are liquid the same way every other smart token is liquid. The smart tokens' contract is the thing you are trading with (as opposed to exchanges where you have to be matched with another party to make a trade). That is why it is always liquid.

The biggest reason that Bancor is better than exchanges is that EVERY conceivable currency in the world, even small ones like community currencies and loyalty points and in-game currencies, will be fully liquid. Exchanges only make currencies with high trading volumes liquid. With Bancor, the long-tail of currencies can be created (alike to how youtube enabled the long tail of videos, how Instagram enabled the long tail of photography, etc.).

There's also the fact that trading on Bancor will be cheaper than on exchanges (no/low fees), that you can create smart tokens that serve as token baskets (kind of like ETFs), and that it is decentralized and therefore cannot be DDoS'd or otherwise easily attacked.

I can see some advantages to that (which is why I'm interested in the first place). However, I don't see this as an alternative to exchanges. If I trade one token for another on an exchange I now have the new token. If I trade one token for Bancor I now have Bancor Tokens. I don't own the tokens inside Bancor outright. I have an ETF basically as you say. An ETF Token, which, is cool and maybe that's really all it is when all is said and done and all the fancy math is complete

[whatsTheDeal]

I am seriously considering investing in Bancor, but I have this nagging question in my head that hasn't been answered yet:

How is Bancor's token any different than any other token? Are the following statements accurate:

1. You buy it with another ERC20 token. Now you have Bancor token.

2. You sell Bancor, use it or hodl.

3. Bancor's price goes up or down based on the buy and sell ratio of Bancor.

Bancor presumably answers the liquidity issue, but what makes Bancor liquid? Isn't it the same as what makes any token liquid, buys and sells?

Not fudding at all, I want to invest! Please help me understand.

So the BANCOR token will be the first of the smart tokens. What makes it liquid is the exact same thing that makes every other smart token liquid: namely that when you are buying/selling smart tokens to the smart tokens' contract, the contract itself is the entity that is selling/buying.

Up until Bancor, the only way to sell is if you can find a buyer who wants to buy what you're selling at the price you're selling it. With the Bancor protocol, the smart tokens' contract is always available to buy from and sell to.

But is it actually buying my token or am I just trading my token for a Bancor token? Bancor tokens will have to be liquid themselves in order for me to buy/sell them. I'm having a problem identifying the difference unless I'm stuck with a token that has absolutely no liquidity itself in which case how does it help Bancor's token? I'm not seeing how this is any better than trading on an exchange and choosing any token/coin I want.

They will hold the reserve in ETH to make us able to buy or sell bancor. It does not need to be listed on any exchange for this.

I'm not sure I understand the difference between buying a token with another token and trading a token for another token. If you were to buy BANCOR from the smart contract, you would send your ETH to the smart contract (which would be added to its reserve) and the smart contract would mint new BANCOR tokens (at the price it calculated at time of trade) and send them to you.

Like I said, Bancor tokens are liquid the same way every other smart token is liquid. The smart tokens' contract is the thing you are trading with (as opposed to exchanges where you have to be matched with another party to make a trade). That is why it is always liquid.

The biggest reason that Bancor is better than exchanges is that EVERY conceivable currency in the world, even small ones like community currencies and loyalty points and in-game currencies, will be fully liquid. Exchanges only make currencies with high trading volumes liquid. With Bancor, the long-tail of currencies can be created (alike to how youtube enabled the long tail of videos, how Instagram enabled the long tail of photography, etc.).

There's also the fact that trading on Bancor will be cheaper than on exchanges (no/low fees), that you can create smart tokens that serve as token baskets (kind of like ETFs), and that it is decentralized and therefore cannot be DDoS'd or otherwise easily attacked.

I can see some advantages to that (which is why I'm interested in the first place). However, I don't see this as an alternative to exchanges. If I trade one token for another on an exchange I now have the new token. If I trade one token for Bancor I now have Bancor Tokens. I don't own the tokens inside Bancor outright. I have an ETF basically as you say. An ETF Token, which, is cool and maybe that's really all it is when all is said and done and all the fancy math is complete

if you trade for a token that is a smart token you will have the token not bancor, if token A is a smart token and token B is a smart token if you buy them you have them not bancor... Also if you trade any of them to a token in a reserve you will have the token. for example if you put GNT in a reserve and you buy GNT you will have it... the only case where you wouldnt have the real currency is when its a tokenized version of it like if somoene were to create a token for BTC you would have a BTC token..

[Red_Sanford]

Bancor is nothing more than a merger of 2 already existing platforms. First is the ability to seamlessly swap one token for another. This is what shapeshift does and it does it very well. Second you will have the ability to create any tokens you want with ease. This is what the waves platform does. Waves platform is also a dex where the created tokens can be traded. Sorry but Bancor sounds like a loser to me

[DurbanPoison]

Bancor is nothing more than a merger of 2 already existing platforms. First is the ability to seamlessly swap one token for another. This is what shapeshift does and it does it very well. Second you will have the ability to create any tokens you want with ease. This is what the waves platform does. Waves platform is also a dex where the created tokens can be traded. Sorry but Bancor sounds like a loser to me

Surely you can't be serious. You are comparing an internal, automatic swapping mechanism in Bancor with a third party web site (Shapeshift) which is simply a front end to another third party web site (the exchange). Bancor is the ultimate in liquidity, sending your coins to one web site and hoping they can connect to another web site to buy or sell on your behalf is not.

[derekis126]

Bancor is the super star project in 2017, let us see if this happens.

[coupable]

i joined the social media bounty. waiting to see its success by the time. i think everybody in the community knows about Bancor.

[Sam San]

I am seriously considering investing in Bancor, but I have this nagging question in my head that hasn't been answered yet:

How is Bancor's token any different than any other token? Are the following statements accurate:

1. You buy it with another ERC20 token. Now you have Bancor token.

2. You sell Bancor, use it or hodl.

3. Bancor's price goes up or down based on the buy and sell ratio of Bancor.

Bancor presumably answers the liquidity issue, but what makes Bancor liquid? Isn't it the same as what makes any token liquid, buys and sells?

Not fudding at all, I want to invest! Please help me understand.

So the BANCOR token will be the first of the smart tokens. What makes it liquid is the exact same thing that makes every other smart token liquid: namely that when you are buying/selling smart tokens to the smart tokens' contract, the contract itself is the entity that is selling/buying.

Up until Bancor, the only way to sell is if you can find a buyer who wants to buy what you're selling at the price you're selling it. With the Bancor protocol, the smart tokens' contract is always available to buy from and sell to.

But is it actually buying my token or am I just trading my token for a Bancor token? Bancor tokens will have to be liquid themselves in order for me to buy/sell them. I'm having a problem identifying the difference unless I'm stuck with a token that has absolutely no liquidity itself in which case how does it help Bancor's token? I'm not seeing how this is any better than trading on an exchange and choosing any token/coin I want.

They will hold the reserve in ETH to make us able to buy or sell bancor. It does not need to be listed on any exchange for this.

I'm not sure I understand the difference between buying a token with another token and trading a token for another token. If you were to buy BANCOR from the smart contract, you would send your ETH to the smart contract (which would be added to its reserve) and the smart contract would mint new BANCOR tokens (at the price it calculated at time of trade) and send them to you.

Like I said, Bancor tokens are liquid the same way every other smart token is liquid. The smart tokens' contract is the thing you are trading with (as opposed to exchanges where you have to be matched with another party to make a trade). That is why it is always liquid.

The biggest reason that Bancor is better than exchanges is that EVERY conceivable currency in the world, even small ones like community currencies and loyalty points and in-game currencies, will be fully liquid. Exchanges only make currencies with high trading volumes liquid. With Bancor, the long-tail of currencies can be created (alike to how youtube enabled the long tail of videos, how Instagram enabled the long tail of photography, etc.).

There's also the fact that trading on Bancor will be cheaper than on exchanges (no/low fees), that you can create smart tokens that serve as token baskets (kind of like ETFs), and that it is decentralized and therefore cannot be DDoS'd or otherwise easily attacked.

I can see some advantages to that (which is why I'm interested in the first place). However, I don't see this as an alternative to exchanges. If I trade one token for another on an exchange I now have the new token. If I trade one token for Bancor I now have Bancor Tokens. I don't own the tokens inside Bancor outright. I have an ETF basically as you say. An ETF Token, which, is cool and maybe that's really all it is when all is said and done and all the fancy math is complete

if you trade for a token that is a smart token you will have the token not bancor, if token A is a smart token and token B is a smart token if you buy them you have them not bancor... Also if you trade any of them to a token in a reserve you will have the token. for example if you put GNT in a reserve and you buy GNT you will have it... the only case where you wouldnt have the real currency is when its a tokenized version of it like if somoene were to create a token for BTC you would have a BTC token..

the main key issue in the exchange will be the issue of pricing, if the smart contract will at any time make the tokens on the exchange for a client and have a question. what is the price of this exchange and is it profitable to change at the moment, liquidity in this case will be supported, but at what cost?