What is Bancor? Bancor (BNT), the first DeFi protocol in history, is a Blockchain project that allows users to offer high earnings through staking. In this article, you can access answers to frequently asked questions such as what Bancor is, what it offers, what is BNT coin, how to buy it, and what it is used for. For our curious readers, we have prepared them as Kriptokoin.com. Let’s examine the project together.
What is Bancor?
Launched in 2017, Bancor is the first decentralized finance (DeFi) protocol in the cryptocurrency ecosystem. Built on the Ethereum Blockchain, the project allows users to avoid permanent losses and earn high stakes with a single type of token. Created by Swiss bankers, the project is managed as a decentralized autonomous organization (DAO). The protocol, which is decentralized by the community, was selected as one of the most secure protocols by DeFiSafety in 2021. The protocol has a native cryptocurrency named BNT coin. This cryptocurrency is used for various purposes within the network, such as paying for transactions.
Bancor project, with its own smart contracts and liquidity pool, makes it possible to perform DeFi transactions without the need for other projects. The protocol allows users to stake many popular cryptocurrencies such as ETH, WBTC, LINK, MATIC, AAVE. Users who lock their crypto into smart contracts of the protocol have the opportunity to earn up to 60% annual staking returns. In addition, users can convert their cryptocurrencies into an equivalent asset and perform trading transactions without the need for a seller, thanks to the liquidity pools of the protocol.
What is BNT coin? What is it used for?
BNT coin is a token that works as the native cryptocurrency of the Bancor project. The token, which has no maximum supply, was created with the ERC-20 smart contract on the Ethereum Blockchain. BNT ensures the decentralization of the network. Users holding the token can join the Bancor DAO and participate in the management of the protocol. Users participating in the DAO can vote on decisions made and submit proposals to the community. In addition, BNT coin is used for various purposes within the network.
Users use BNT to provide liquidity to the protocol’s asset pools. When a user adds assets to the liquidity pools, they are entitled to a share of the transaction fees that other users pay on the network. Liquidity providers earn a representative amount of tokens from their share of the liquidity, fees and mining rewards in the pool. Users who provide more liquidity to the pools receive more rewards. At the time of writing, BNT coin had a market cap of around $611 million and was the 118th largest cryptocurrency. In addition, 262.6 million BNTs were in circulation.
How to buy BNT coins?
BNT coin is traded on many cryptocurrency exchanges. Currently, crypto exchanges such as Binance, OKX, Bybit, Huobi Global are listing the token. Investors interested in the Bancor project must first become a member of one of these exchanges. Users who are fully registered and have a fiat currency such as dollars and liras in their wallets can purchase BNT.
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