Bancor Protocol: Continuous Liquidity for Cryptographic Tokens through their Smart Contracts

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by Eyal Hertzog, Guy Benartzi, Galia Benartzi, and Omri Ross | Jan. 09, 2018


This paper introduces the Bancor Protocol, which leverages the capabilities of smart contracts to build liquidity directly into tokens themselves. These "Smart Tokens" are always available to be both bought and sold directly through their smart contracts. The papers covers these tokens in depth including pricing algorithm, possible use cases, and potential configurations. Finally, the paper discusses the Bancor Network Token, which will serve as a relay token making all tokens in the network interchangable with one another.



In this white paper, we have proposed the Bancor Protocol for decentralized liquidity networks, based on a protocol for a new class of tokens called Smart Tokens, which provide continuous liquidity by incorporating an autonomous and low-cost market making functionality directly into their smart contracts. Smart Tokens utilize connected token balances and an intelligent and open-source pricing algorithm to perpetually offer to buy or sell themselves at calculated and predictable prices, in return for any other token to which they are connected.


Date Published Title Page Count
2017-05-30 Bancor Protocol v0.99 Download 13