BANCOR-An awesome liquidity pool Provider
What is a liquidity pool??
simple answer....
A liquidity pool can simply be referred to as a basic collection of various tokens which are actually locked into a smart contract....what this does is that it will actually help the traders and also the decentralized exchanges by been able to provide liquidity.... when this liquidity is provided, they actually do help the decentralized exchanges (DEXs) to be able to actually avoid any kind of major price changes when the large trades is been able to go through....
What is bancor??
Bancor is an awesome platform which is a great liquidity pool provider,it is a platform which is a Ethereum based Blockchain protocol that do make use of what can be termed as "pooled liquidity". it is similar to another wonderful liquidity pool platforms which are named "Curve", "Uniswap",etc.....
Bancor is an effective platform which do make use of an algorithmic market-making mechanisms which is actually done via the use of “Smart Tokens,” to be able to ensure a proper kind of liquidity and also give a cool and an accurate prices by maintaining a cool and balanced fixed ratio vis-à-vis connected tokens (e.g., the ETH) and also been able to actually adjust their supply.........
"Bancor relay" is the term which is used to refer to its liquidity pool,the platform also decided to create a kind of stablecoin and the reason it was created was because they wanted to use it to solve liquidity volatility due to the basic dependence on the BNT which is actually their native token....... Consequently, it enables the possibility of a liquidity pooling which occurs between the BNT token,the Ethereum or also the EOS tokens, and its stable coin which is the USDB......
SO in other words,bancor uses its native token ( BNT) to actually facilitate the various swapping which exist between other blockchains, bancor currently supports the EOS CHAINS and also the Ethereum too...
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