Bancor Network
About Bancor? Bancor is a decentralized, open-source protocol ecosystem dedicated to advancing on-chain trading and liquidity. Its primary protocol, Carbon, is a decentralized trading protocol that allows users to execute automated trading strategies using custom on-chain limit orders and range orders, with the option to combine orders to create automated buy-low, sell-high strategies. Fast Lane is an independent, open-source arbitrage protocol that allows any user to arbitrage between Bancor ecosystem protocols and external on-chain exchanges, redirecting arbitrage profits back to the Bancor ecosystem. All protocols in the Bancor ecosystem are governed by the Bancor governance organization through staked BNT governance. What makes Bancor unique? Bancor's flagship protocol, Carbon, allows users to execute automated trading strategies on-chain, providing greater control and higher efficiency than existing decentralized exchanges. Existing on-chain liquidity solutions have several major shortcomings, namely: 1) executed orders may be reversed when prices change, and 2) a single liquidity position must use the same pricing curve to execute both buys and sells. As a result, on-chain liquidity is costly and difficult to automate and update, while also leaving traders vulnerable to MEV sandwich attacks. Carbon introduces a novel form of on-chain liquidity called asymmetric liquidity, allowing users to create independent liquidity positions with different pricing curves: for buying and for selling. This enables users to set buy and sell orders that execute within specific price ranges, with the option to combine orders to create automated buy-low, sell-high strategies. Carbon's orders are designed to be irreversible once executed, can be easily adjusted directly on-chain, and are completely immune to MEV sandwich attacks. These features provide users with unprecedented control and automation capabilities for executing novel trading strategies on-chain. For example, if a user believes that ETH will trade between 1500 USD and 2000 USD in the near future, the user can set a Carbon strategy to automatically buy 1500 USD to 1600 USD of ETH and sell 1900 USD to 2000 USD of ETH. As the market price enters the selected ranges, orders are automatically executed by traders interacting directly with Carbon or through popular DEX aggregators. The entire process does not rely on external oracles or keepers. Strategy updates can be completed with extremely high gas efficiency through parameters in the strategy smart contract, without withdrawing and re-adding liquidity. Carbon also improves upon the trading model of centralized exchanges, allowing users to create multi-order strategies that use a single rotating source of liquidity to execute trades, eliminating the need to create multiple limit orders or separately pre-fund each order upon creation. By combining the feature-rich trading capabilities of centralized exchanges with the openness and transparency of automated market makers, Carbon opens the future of decentralized on-chain trading. History of Bancor In 2017, Bancor invented the first blockchain-based automated market maker (AMM). The first version of the protocol was launched in 2017 June, and subsequent versions of the protocol continued to iterate on the original AMM model. 2020, the Bancor governance organization was established to oversee and govern the development of Bancor ecosystem protocols. Since then, the Bancor governance organization has voted on more than 450 governance proposals; as of the time of writing, there are more than 9,700 governance token holders and more than 1,100 voters. What's next for Bancor According to the Bancor governance organization, the Bancor community is focused on developing its flagship protocols, Carbon and Fast Lane. The beta version of Fast Lane is currently live on the Ethereum mainnet and will continue to evolve; the beta version of Carbon is expected to launch on the Ethereum mainnet in the second quarter of 2023, subject to a vote by the Bancor governance organization. Thereafter, the community will explore deploying Carbon and Fast Lane on other Layer 1 and Layer 2 blockchains. The Bancor community will continue pursuing its mission, dedicated to
Overview
About Bancor? Bancor is a decentralized, open-source protocol ecosystem dedicated to advancing on-chain trading and liquidity. Its primary protocol, Carbon, is a decentralized trading protocol that allows users to execute automated trading strategies using custom on-chain limit orders and range orders, with the option to combine orders to create automated buy-low, sell-high strategies. Fast Lane is an independent, open-source arbitrage protocol that allows any user to arbitrage between Bancor ecosystem protocols and external on-chain exchanges, redirecting arbitrage profits back to the Bancor ecosystem. All protocols in the Bancor ecosystem are governed by the Bancor governance organization through staked BNT governance. What makes Bancor unique? Bancor's flagship protocol, Carbon, allows users to execute automated trading strategies on-chain, providing greater control and higher efficiency than existing decentralized exchanges. Existing on-chain liquidity solutions have several major shortcomings, namely: 1) executed orders may be reversed when prices change, and 2) a single liquidity position must use the same pricing curve to execute both buys and sells. As a result, on-chain liquidity is costly and difficult to automate and update, while also leaving traders vulnerable to MEV sandwich attacks. Carbon introduces a novel form of on-chain liquidity called asymmetric liquidity, allowing users to create independent liquidity positions with different pricing curves: for buying and for selling. This enables users to set buy and sell orders that execute within specific price ranges, with the option to combine orders to create automated buy-low, sell-high strategies. Carbon's orders are designed to be irreversible once executed, can be easily adjusted directly on-chain, and are completely immune to MEV sandwich attacks. These features provide users with unprecedented control and automation capabilities for executing novel trading strategies on-chain. For example, if a user believes that ETH will trade between 1500 USD and 2000 USD in the near future, the user can set a Carbon strategy to automatically buy 1500 USD to 1600 USD of ETH and sell 1900 USD to 2000 USD of ETH. As the market price enters the selected ranges, orders are automatically executed by traders interacting directly with Carbon or through popular DEX aggregators. The entire process does not rely on external oracles or keepers. Strategy updates can be completed with extremely high gas efficiency through parameters in the strategy smart contract, without withdrawing and re-adding liquidity. Carbon also improves upon the trading model of centralized exchanges, allowing users to create multi-order strategies that use a single rotating source of liquidity to execute trades, eliminating the need to create multiple limit orders or separately pre-fund each order upon creation. By combining the feature-rich trading capabilities of centralized exchanges with the openness and transparency of automated market makers, Carbon opens the future of decentralized on-chain trading. History of Bancor In 2017, Bancor invented the first blockchain-based automated market maker (AMM). The first version of the protocol was launched in 2017 June, and subsequent versions of the protocol continued to iterate on the original AMM model. 2020, the Bancor governance organization was established to oversee and govern the development of Bancor ecosystem protocols. Since then, the Bancor governance organization has voted on more than 450 governance proposals; as of the time of writing, there are more than 9,700 governance token holders and more than 1,100 voters. What's next for Bancor According to the Bancor governance organization, the Bancor community is focused on developing its flagship protocols, Carbon and Fast Lane. The beta version of Fast Lane is currently live on the Ethereum mainnet and will continue to evolve; the beta version of Carbon is expected to launch on the Ethereum mainnet in the second quarter of 2023, subject to a vote by the Bancor governance organization. Thereafter, the community will explore deploying Carbon and Fast Lane on other Layer 1 and Layer 2 blockchains. The Bancor community will continue pursuing its mission, dedicated to