To add a new token to the Bancor Network, you simply need to create a "liquidity pool" for that token. Liquidity pools provide tokens with constant liquidity and allow anyone to "stake" in the pool in exchange for a share of the pool's trading fees and staking rewards.
Once live, any user can supply liquidity to a pool. The pool becomes more useful with each new user who adds liquidity, since more liquidity results in better prices on trades.
There are no minimums to create a pool (you can create a pool with as little as $1 USD) and there is no central party controlling the process.
Permissionless listing interfaces:
For experienced developers, you can create a liquidity pool on the blockchain by following this guide.
After you add your pool to Bancor's global contract registry, any interface integrating the Bancor Protocol can source liquidity from your pool for token trades. Smart order routers determine which liquidity pool(s) offer the best price for a given trade.
If you would like to apply to have your token listed on Bancor.Network front-end website, please fill out for Bancor's new token application form. Someone from Bancor's team will contact you (typically within 72 hours).
3) Embed the Bancor conversion widget on your site.
What does it cost?
Anyone can create a Bancor pool for less than $1 USD in its reserves.
Or you can create a pool on the blockchain by following this guide.
Your pool is then added to Bancor's global contract registry. Any third-party UI built atop Bancor Protocol can then pull live tokens from this registry.
Can I add the liquidity provider fee?
Yes, you can customize the liquidity provider fee on your pool to any amount. 100% of the liquidity provider fees generated by your pool are sent to the pool's creator and any users staking inside the pool. Bancor is a non-profit protocol and therefore does not take any platform fees.
The liquidity provider fee (which is typically 0.1-.3%) is taken out of each conversion and added to the pool’s liquidity.
Fees ensure that the total combined liquidity size increases with every conversion. Fees function as a payout to liquidity providers that can be collected when they withdraw liquidity from the pool.
What is BNT?
Creating or providing liquidity to a liquidity pool on Bancor requires holding BNT (Bancor's Network Token) or its stable derivate, USDB. This means that when you are creating or staking in a Bancor pool, users must do so in equal values of BNT + ERC20 token, or BNT + EOS token.
There are key advantages to using a protocol token like BNT, instead of a blockchain asset like ETH or EOS, in liquidity pools.
1) Cross-Chain Conversions:
Using BNT or USDB in Bancor pools allows Bancor to efficiently process token trades across blockchains. All ERC-20 (Ethereum) and EOS token on Bancor are convertible cross-chain, via BNT. BNT mints and destroys itself across chains to process these cross-chain trades.
2) Network Effects:
Bancor Protocol is designed to create a direct correlation between Bancor Protocol usage and demand for BNT. As new liquidity pools are added to the network and more users stake inside Bancor pools, it increases the demand for BNT.
While many factors influence the demand of ETH, staking on Bancor directly influences the demand of BNT. This means that as more liquidity is added to a pool, every pool on the Bancor network becomes more liquid.
3) BNT Staking Rewards (Coming soon, pending a community vote)
In Q2 2020, pending a community vote, Bancor will release BNT staking rewards. Users who are staking tokens in Bancor pools will receive BNT inflation reward via newly minted BNT. These rewards will increase the ROI of staking in Bancor pools, and create an incentive for users holding BNT to become stakers.
How is Bancor different than a DEX?
Compared to order book-driven DEXs, Bancor liquidity pools offer:
- Constant Liquidity - Pools remove counterparty risk from the equation and ensure always-available liquidity.
- Deterministic Pricing - By replacing order books with smart contract code, users can more accurately measure how much of an asset they’ll receive prior to submitting a conversion.
- Fully on-chain - Conversions via pools occur fully on-chain - from pricing through settlement - ensuring unmatched transparency.
- Incentivized Liquidity - Your token holders can add their idle assets to liquidity pools and earn fees off conversions (further decentralizing and incentivizing the creation of liquidity).
I opened a Bancor liquidity, now what can I do with it?
Once your liquidity pool is live, anyone can now stake inside your pool in exchange for a share of the trading fees. This increases the liquidity of your token, making it cheaper to convert. (Guide: How to Add Liquidity to a Bancor Pool).
Any token added to the Bancor Network becomes instantly convertible for more than 150 tokens on Ethereum and EOS, including ETH, EOS, DAI, OMG, PEOS & more.
Bancor’s conversion widget is embeddable within any website or app. This enables frictionless non-custodial conversions for your users, directly from your website or dApp. Supported third-party wallets include MetaMask, Scatter, Fortmatic, Ledger and Trezor.
In addition, any third-party UI built atop Bancor Protocol can then pull live tokens from this registry. This means your token is now discoverable on DeFi platforms like Zerion and DEX aggregators like 1inch.exchange , Paraswap and DEXAG.