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What happened to the crypto project Bancor?

Bancor is a crypto project born in mid-2017.

Its name echoes that of the famous “international monetary unit” proposed by John Maynard Keynes during the Bretton Woods conference.

The Bancor proposed by Keynes was supposed to be an exclusively interbank currency, which served solely as a unit of account to calculate the net position of trade between nations. Keynes’ idea was to create some sort of clearing system for world trade after the end of World War II.

Keynes’ Bancor never became a reality, although the International Monetary Fund later took up the basic idea after the Great Financial Crisis of 2007/2008, although he imagined using its Special Drawing Rights (SDRs).

The crypto of Bancor Network (BNT)

The Bancor Network project was launched in 2017 with its BNT token.

BNT is not a cryptocurrency in the strict sense because it does not have its own blockchain. In fact, it is an ERC-20 token on Ethereum.

Bancor was born in 2017 with an ICO aimed at creating a decentralized liquidity network to allow any Ethereum token to be held and converted to any other token in the same network in P2P mode, i.e. without relying on a third party, and using automatically calculated prices and a simple wallet.

Instead, this was not the case, as the project already began to take a different direction between 2018 and 2019.

In fact, over time it turned into a DeFi trade and strike protocol with unilateral liquidity.

The basis of the project is the Bancor DAO, whose mission is to bring DeFi mainstream by providing the easiest and safest way to trade and earn passive income.

In fact, in 2017 one of the first Automated Market Maker (AMM) liquidity pools was the one developed by Bancor, so many of DeFi’s protocols are still inspired by that work to this day.

Currently, the Bancor protocol generates profits for depositors, promises up to 30% APRon more than 70 tokens including ETH, WBTC, LINK, MATIC, AAVE and others.

In addition, Bancor is the treasury and liquidity management solution used by dozens of DAOs, including Polygon, Synthetix, UMA, Paraswap, Nexus Mutual, KeeperDAO, BarnBridge and WOO Network DAO.

The BNT token

The BNT sign had two big bull runs, and two heavy bear markets.

It hit the markets in mid-2017 at a price of just under $3, and although it had already fallen below $2 by November of that year, it peaked at over $10 in January of the following year .

Then again, in late 2017 and early 2018 there was a huge speculative bubble that formed on several altcoins, including ETH, with truly remarkable gains.

But that bubble then burst, so much so that by April 2018 the price of BNT had already fallen to $2.2.

The decline continued until December, when it even fell below $0.5, and then after a small recovery in early 2019, it finally fell to $0.2 in January 2020.

By that time, the cumulative loss was 93% of the initial placement price, and even 98% of the all-time high.

In 2021 there was the second big bull run.

By November 2020 it had already risen to about $0.6, but in March 2021 it went as low as $9, which was just below the record high of three years earlier.

Already in May of that year, the price started to fall again and reached $2.6 in July 2021. The price of BNT did not rise at the end of 2021, and indeed by January 2022 had already fallen to $2.3, which became $2.1 in March.

However, the real crash came after the collapse of the Terra/Luna ecosystem in May of this year, when it first fell to $1.4, and then to $0.5 in June.

The current price below $0.4 is in line with that of 2019, but higher than the 2020 lows. Specifically, it is down 96% from the January 2018 high, but up 216% from the March 2020 low.

So it is a decidedly volatile sign in the medium to long term, while not particularly volatile in the short term.

The roadmap of the Bancor crypto project

In theory, the development of the project is not complete, especially since version 2.0 is dedicated to DeFi is currently in progress and development.

Version 2.1 was launched in October 2020, which was after the first one hit bottom, and it was a radical change in providing liquidity to AMMs with “volatile loss protection.”

They are currently working on Bancor 3, the third version of the protocol, which will also be the biggest proposed update to Bancor to date. It will be a new architecture that reduces gas costs and increases the efficiency of the protocol.

Bancor 3 will be implemented in three different phases called Dawn, Sunrise and Daylight. Dawn will already address the main friction points of the protocol, but this will only be the beginning of what is to come in the later Sunrise and Daylight Phases.

The DAO

Behind this project is the DAO of Bancor Network.

In fact, the Bancor protocol is governed by a democratic and transparent voting system that allows all stakeholders to be involved.

The control token is vBNT, which is the token obtained by staking BNT tokens.

In the future

The Bancor project already seems to have had two lives, the first of which has ended and the second may be nearing completion, but with the third version of the protocol, it could possibly have a third.

If nothing else, the project has shown itself to be able to adapt to changing times, and especially to take advantage of trends not to die.

Its future is uncertain, as is the future of many DeFi projects after last year’s boom and this year’s crash. But the technology they’re based on seems destined to stay.

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