AMM DEX Pioneer Bancor

Recipe

Bancor is a pioneer of DEX AMM, but Bancor's market share has declined since the advent of AMMDEX like Uniswap and Sushiswap. ThenBancor chose "Fixed Falling Solutions" as a starting point to improve its contract. In version v2.1, LP providers are not permanently obsolete by default.

The basis of version 2.1 is the BNT exchange, which has two functions.

1) A benefit is promoted to increase efficiency and reduce risk.

2) Promote security protection. The contract uses two types of protection: on the one hand, the contract price is used to pay the service providers for the loss, and BNT is bogus to pay the loss in exchange rates. Liquidity protection requires a 100-day closing period to complete nearly 100% coverage, and has a cap on the value of the liquidity pool.

v 2.1When a version comes out, it has several features:

In order to establish a better base and extend its market share in the DEX field, Bancor switched to a v2.1 version and will release a v3 version which continuously improves the delay solution (increasing the height of the tank, etc.). , committed to improving its performance.The main improvements include:

1) Set the upper limit of the safety protection. In version 2.1, the contracted BNT value is capped and users must authorize BNT to extend the group.Once the liquidity protection cap is removed, the contract's liquidity will increase further, which will help create a positive cycle of high, lossless liquidity, increase the volume of transactions and increase the price to attract more liquidity. . Currently, investors are limited to fixed returns with limited capital and certain long term returns.After removing the protective cap from the cap, the value of the counterfeit BNT in the contract will increase further, but the benefits of the cap will be minimal.

2) Know the immediate safety protection, users can deposit and withdraw at any time, no need to wait 100 days to achieve 100% permanent fall protection and improve the ease of investment. Perpetual Loss Calculations v3 can use Oracle quotes, so there may be a gap in the gap resulting in permanent lower stress on the contract to increase the likelihood of using False BNT for payment.

3) By placing a BNT pool, the token exchange does not have to be delivered by BNT, which reduces costs and fuel costs.

4) Let BancorDAO take the initiative in distributing money. The contract will cover the terms of exchange and the superfinancial. The liquidity of transactions is used to create transactions. Super Liquidity can be used as trade liquidity and can also be used for other payment methods. The instrument is also determined by the DAO and tokens. Beyond industry performance, the super-liquid strategy can be used to further benefit protocol participants. In addition, by adding functions like automatic mixing for mining fund income, two payment methods, support for permanent sharing with another party and the use of LP token composition, we aim to increase user revenues and increase use value. the money below. . Currently, the DEX industry is very competitive, and the head effect is evident as the example of Curve illustrates.By taking a different approach to the product, you can compete for more market share.Thus, Bancor's deep commitment to sustainable solutions is achieved through features that enhance investment and customer experience, helping Bancor to further increase DEX trading. for

1. Key points

1.1 Presentation of the project

Bancor is a decentralized exchange based on Ethereum, the introduction of the solution is a permanent solution. The current process is v2.1 and the main process is the BNT exchange. Bancor will soon release a v3 version to continuously improve its solutions while increasing the use of low-end resources and balancing the benefits of traders, vendors and BNT's stranglehold.

2. Description of the project

2.1 Founders and contributors

2.2 Funding The Bancor ICO raised 390,000 ETH, for a total of $ 152.3 million in ETH at the time. The value of the ICO is 1 BNT = 0.01 ETH, with a total of 79,323,978 BNT created at the time, half of all tokens were sold to ICO participants, the remaining 20% were distributed to ecological gifts and 20% are distributed to ecological gifts. to the Bancor Foundation, 10% to Bancor. ETH expenses:

The team made no further adjustments to future budgets.

2.3 Articles

For a while, Bancor was the fastest DEX AMM on the market, currently v2.1 and will soon be upgraded to v3. Automated Market Makers (AMMs) use algorithms that transform information from traditional manufacturers and use the pool to market to customers. The token pool contains at least two trading tokens and is made up of processes that provide users with exchange rates at different times.

Manufacturers can still participate by adding more tokens to the token pool. AMMs are also called LiquidityPools (LP) because this pool collects runoff from commercial manufacturers. Most of the AMM DEX algorithms currently on the market are simple and are basic X * Y = V algorithms, and the design algorithm difference only slightly affects the exchange rate. . The most important price factor is liquidity.

Figure 2-1 Bancor trading interface

Figure 2-2 Interface of the liquidity pool

2.3.1 Lock Lock v2.1

v2.1 is the current version with two main features.

1) A profitable business designed to minimize risk.

2) Liquidity protection.

v2.1 adopts the process of the above two features visible by BNT elastic supply (BNT elastic supply).Bancor Solutions: ib. When the user adds TKN to the TKN token whitelist pool (example), the contract sets up the new BNT, and the value of the newly created BNT is equal to the value of TKN, which increases the total assets. by BNT.

b. When commercial users use this pool, part of the operating costs are paid by TNK and part of the operating costs are paid by BNT.

vs. Meanwhile, if another user contributes 100BNT to the pool, the original 100BNT in the pool is destroyed and the exchange rate for 100BNT is also damaged.

D. When the pool's whitelist expires and the user removes the fluid, the contract is considered permanent.

e. The contract uses exchange rates to cover losses and determines whether new counterfeit BNT should be used to cover losses.

F. Once the loss is billed, the remaining BNT tokens associated with the TKN pool will be destroyed.

To protect the entire network from serious interference from the new BNT, the following restrictions are applied:

1) The total amount of a token and the number of BNTs issued because the sum of a token is capped on the network. - There is one day to pay 100% deposit permanently.)Bancor's income from the lake is divided into two phases.

1) The value appears for the BNT protocol belonging to the protocol. The cost of BNT fraud in the contract is used to pay for the physical loss of the provider permanently, and to break the remaining balance after payment. If the contract price is not enough to cover the loss permanently, the contract will be subsidized using bogus BNT.

2) The value of the TKN token (example) is distributed to financial service providers. The liquid protection procedure means that the longer the user pool, the higher the protection, and after about 3 months (100 days), 100% of their loss is permanently reimbursed. Assuming there is no downside and no BNT service provider as Bancor is a profitable business venture, the exchange rate through the pool is paid partly by TKN and partly by BNT.

When the end user withdraws the full liquidity from the TKN, the value of the TKN is greater than the starting price, so the BNT deduction from the contract may also be greater than the previous income. As a result, the total absorption of BNT is reduced, resulting in insufficient BNT. However, the assumption of this decision is almost impossible, and the loss of impermanence can be reduced but not avoided. The permanent loss of Bancor Insurance will force the system to provide BNT tokens to pay service providers, which will increase the overall value of BNT products. Special increases / decreases depend on the volume and volatility of the Bancor market.

BNT exchange rates can only be effective in the long run when commodity prices and falling prices reach equilibrium levels.

Figure 2-3 shows a similar function to the above figure, after the token provider TKN delivers the tokens, generating a Pool Token (PT). , and users can access vBNT through the BNT service for free. pool., representing the BNT liquidity that they defend and vote in community.

Vortex de BancorBanco Vortex actually sells BNT cash to increase BNT's leverage by providing proof of vBNT functionality. The Bancor contract will charge 5% of the exchange rate for the redemption and elimination of vBNT, and the purpose of this decision is to allow vBNT to exist as a buyer. Votex is the ultimate solution for v2.1. vBNT represents income and exchange rates, mining income and vBNT separately. vBNT in v3 links liquidity, costs and mining revenue, so all revenue can be mixed.

Will improve:In Bancor 2.1, the market still needs BNT as an average token. For example, when ETH buys ENJ, it has to go beyond the ETH-BNT-ENJ exchange rates. Trade and slippage are tough contracts and oil prices are rising. ;

The basis of the 100% guarantee is the permanent loss if the goods are to be delivered for 100 days, and the user cannot deposit and withdraw money at any time, which reduces the cost. .

· There is an upper limit to the extension of certain benefits.

2.3.2 v3Version v3 is an improvement of the flaws of v2.1,divided byThreestage, that is to say dawn (hope2022year1published monthly), daytime functionality (basic functionality), daylight.

Figure 2-4 The v3 announcement contains five major updates at dawn.

1) Immediate protection against permanent crashes: No need to wait for the end of the 100 day cycle as in version v2.1. Providers can benefit from secure protection for deposits and withdrawals at any time. However, there may be a slight difference when preventing a permanent drop, causing the system to overheat to cover the permanent drop, and the system may advertise BNT tokens in addition to the rewards for the service providers. The new technology was used to better utilize existing contract products and simplify the use of cost pool services to cover losses permanently in the network pool.

2) Define the BNT content of the pool: In v3, the BNT pool is the intermediate pool. In Bancorv2.1, all pools must have BNT pools (eg ETH / BNT, DAI / BNT). Participants said that once the BNT is put into the pool, the token exchange does not need to be sent through the BNT, which reduces fuel consumption and downtime.

3) Auto-shuffle: When users generate income, it usually comes from exchange rates and mining rewards. Cash extraction and exchange rates can be mixed. In v2.1, exchange rates can be mixed, but users must manually provide their mining results. Also in v3, both parties and Bancor can exchange tokens as a reward (two interests made up of initial gifts).

4) Eliminate deposit restrictions. Keeping all liquids at DEX helps provide the water with better depth and value. As data protection performance increases, only an increase in the packaging industry and revenues (including exchange rates and other revenues) can affect the business model. The contract will describe the conditions for exchanging superliquid income and assets, the exchange rate used to start the business, and superliquidity is used for trading, liquidity, and other payment strategies. The size of the liquidity market is also determined by the DAO, and tokens exceeding the liquidity of the exchange can be used in a super liquid strategy to collect additional fees for the protocol from participants. Significantly, this is a matter of the importance of the allocation of bottom-up capital, which is used to get a better return on the trading strategy when the required action is taken.

5) BancorDAO will be able to decide by agreeing how the counterfeit BNT will receive additional fees per approval, including a vote to reduce the amount of counterfeit BNT on the white paper or replace BNT artifacts for. BNT and LP holders received commissions for outperforming other Bancor contracts.

Additional features:

1) Reduce fuel costs

2) L2 placement. Now DEXs are always more export oriented, and as Bancor contracts improve, migration becomes easier.

3) One-click stream conversion can convert liquid v2 to v3 or stream from DEX such as Uniswap and Sushiswap to Bancor v3.

4) Linkable Pool Tokens: Bancor v2.1 Pool Tokens are linked to a single slot and cannot be combined. Bancor v3 introduces a new standard LP token to increase user spending, or the Bancor protocol allows users to redeem LP tokens for mixed results. According to data from AMA team, in version v3, when LP tokens contain LP tokens (such as vBNT), users will not be able to enjoy Apple income. Currently, major lending equipment and DEX LP tokens in the market can be traded independently, but only a small fraction of the LP tokens have been used. Currently, the most common use of LP tokens is for Curve's LP tokens, and the system of ecosystems such as Curve has emerged, including contract income. Bancor LP tokens are combinable and have a significant impact on returns.

5) Third Party Protection: In v2.1 the constant loss was paid for by the exchange rate and the addition of BNT tokens, essentially keeping the BNT slightly higher (off). If the permanent loss is greater than the net loss of income, the BNT continues to increase. v3 Remove the pollution prevention cover and get protection immediately. The pressure to compensate for the permanent loss will increase further. The part of the token project will provide tokens to pay for the permanent loss and share the heart with Bancor.

6) Improved front-end.

Summary: A lot of content is still being discussed on v3. Now, on the cusp of v3, performance is all about the gift of permanent downfall and increased revenue. Improvements to fixed income securities include:

1) immediate donation;

2) Third party payment (part of the project)

3) Lift up the cash protection cap. Income improvements include:

1) Improve the use of the following assets by dividing the income of DAO

2) Support configuration of LP tokens.

3) Automatic dialing.If permanent fall prevention and recurrence can be achieved, it can increase supplier satisfaction and complete a good circle of commercial products. Raise, lower prices, increase the packaging industry and increase labor costs to attract more products. .

3. Development 3.1 History Table 3-1 Bancor events

The Bancor Group has been the Appcoin off-chain trading platform since 2012. The size of the ICO in 2017 was also the largest at the time, and even the largest of the group's financial plans. Bancor was the first DEX AMM. The first vision was to provide a market for long-range tokens, the key being to develop a standard BNT pool for long-term tokens and use algorithms to generate market quotes.

Bancor is committed to the Ethereum ecosystem. In 2018, cross-chain EOS developed an inter-chain exchange system, BancorX, but it did not work well, mainly due to the poor development of the EOS ecosystem. Since the Bancor 1.0 algorithm requires the use of BNT as a token exchange for token trading, it requires higher costs and larger losses. The guide is concentrated in Uniswap.

Bancor v1 has a small pool, small size, low packaging volume and low income, creating a vicious cycle in which participants refuse to provide income. At the same time, the market has also said that AMM DEX profit sharing providers are declining (and not always declining), and AMM DEX generally does not support a producer of monetary gain while giving income. The increased demand for liquidity market providers puts risk to the detriment of many tokens.

As a result, Bancor hopes to improve its AMM model to make token trading more efficient and increase market volume, while reducing the risk of multiple wins and losses. Bancor announced the release of v2.0 in April of the same year.

Bancor encountered some issues after the v2.0 beta was released, so they postponed the upgrade and reinstalled it directly to the v2.1 level. Version v2.1 provides liquidity by taking responsibility for regular unemployment and profit.

3.2 events

Bancor v2.1 has been running for a year. Below is information about the Bancor exchange and related information since Bancorv2 has been running. There is no perfect measure for the DEX measure on the market today, and volume is just one measure.

In AMM DEX the higher the income, the more you can profit from LP, the deeper the depth, the better the price and the more the market volume increases the contract income. However, a high market does not mean that the LP's return is the highest of all contracts. This is because factors like investment and constant downtime affect LP recovery.

Figure 3-1 Bancor's Transaction Volume (January 2019-2021.11) As shown in Figure 3-1, prior to May 2020, Bancor's monthly turnover exceeded $ 10 million. , Uniswap has a monthly volume of approximately $ 11 million. $ 1 million). With DeFi's boom in 2020, Bancor's packaging industry has grown further with the market, peaking in August 2020 with monthly revenue of $ 160 million.

Bancor v2.1 was announced in October 2020, but the Bancor packaging industry did not continue to grow as the market collapsed. The market will warm in 2021, with rapid growth in volume and the overall volume market of Bancor. The release of v2.1 may have little impact on Bancor's volume growth.

Figure 3-2 Market share of Bancor trade volume (January 2020-2021.11)

As shown in Figure 3-2, prior to the release of v2.1, Bancor shares typically peaked at 4%, and after the release of v2.1, depending on the increase in pool liquidity. Bancor, Bancor's market generally reached 5. high. April 2021.% to 2%. Although Bancor's capital increased, this had little impact on its activities in practice.

Perhaps the reason is that Bancor only has a few pools to have a stable market. When Hot Tokens appear in the market, Bancor is rarely better off, so their market share usually declines while Hot Tokens are in the market. For example, level games Q3 2021. and Q4 and meta-universe domain tokens.

Figure 3-3 Liquidity Protection Total et Token Type

As shown in Figure 3-3, Bancor currently supports around 80 types of tokens for water protection. As of November 2021, total protection performance was almost $ 1 billion, of which liquid tokens are typically BNT (blue), WBTC (orange (bottom)), MATIC (green), and LINK (pink). , according to ENJ (orange (above)), the total revenue for the five tokens is nearly $ 700 million.

Figure 3-4 Total amount of BNT tokens

As shown in Figure 3-4, the total amount of BNT forging increases as the reservoir opens. Once the liquidity is withdrawn, the additional fake BNT in the system is destroyed. Thus, if the income in addition to Bancor increases to a certain extent, the total amount of BNT in the system will reach a steady state.

Figure 3-5 Total vBNT name

vBNT is almost equal to the total amount of BNT tokens promised, and since June 2021 BNT deposits have entered a stable phase. As of November 26, 2021,About 2% of the total cost of vBNT is destroyed, because the vBNT / BNT swap volume is low, the income rate is low, and the extinction rate of vBNT is low. As shown in Figure 3-4, it can be determined that the total amount of BNT can increase rapidly in 100 minutes after removing the top security block after the announcement of Bancor v3 and performance protection by deposits and withdrawals. However, in Bancor, once all lake drainage has reached a stable level, the total amount of BNT also enters the stable period.

3.3 Future

According to the information released by the group, Bancor will focus on v3 development and market share in the coming months, the information release is now the first phase of Bancor v3, and the second phase of v3 will be released. in a close future. Bancor v3 phase 1 will be released in January 2022. The team will announce v3 phase 2 in February and complete the phase 2 updates in March or April.

Summary: As Bancor tried to solve the problem,Then I started doing quests. Current version v2.1liquidity will prevent.And although this specialty has grown considerably in the contract, it has not yet developed its activity. As a result, the team will increase their capital while continuing to focus on problem solving, improving the Bancor protocol on the basis of the DEX facility.v3Exports are an important step towards increasing business.

4. Economic structure

4.1 Equipment

At the time of ICO start-up, BNT's total equipment was 79,323,978 and it held dynamic equipment for two years.

Following the release of version v2 and the mining platform, BNT is a popular token.Yes No2021year11hli24tav su,Bntthe maximum given234,106,568, of which 83.11% is guaranteed in the contract, the actual circulation of tokens is approximately 40 million BNT..Mine de KuaThe team started trading in November 2020 for 72 weeks (no later than March 2022).

· Bancor offers BNT rewards to liquid providers in white ponds every week. The large lakes receive 100,000 to 200,000 BNT per share and the medium lakes receive 10,000 to 20,000 BNT per share.

· 2 new tokens can be added to the mining upgrade plan every 2 weeks. Once opened, the token pool will continue to receive BNT token rewards for 12 weeks.

· The token pool will continue to receive BNT token rewards for 12 weeks after opening.

· 70% of the BNT liquidity extraction rewards will be distributed to the BNT end of the liquidity pool and the remaining 30% will be distributed to the base ERC20 end (i.e. TKN).

· Start with 6 large ponds and 2 medium ponds.

4.2 Thoughts

Version v2.1 has the highest limit of free ads from Liquid Protection. This means that there is a maximum limit of two pools and bogus BNT systems on the entire network. If users wish to deposit other types of tokens, they should extend the BNT tokens they deposit. Users who deposit BNT will receive vBNT which can be used to manage and earn exchange rates. While Bancor v3 is still an easy BNT repository for LPs, v3 will be able to increase the demand for BNT as it will more or less be able to find a better solution for BNT income.

4.3 Analysis

As there is no new BNT token data from Liquid to date, the following is just a bad judgment based on the existing data. Inflation of BNT is generally divided into three phases.

1) mining;

2)This contract is a fraudulent BNT and was not disclosed in store.Some of this BNT is destroyed when users add BNT to the pond or remove water.

3) If the collection fee contract cannot be paid definitively, the contract will create a new BNT to pay the financial service provider when the user terminates the water.

Figure 4-1 Provision of BNT tokens

Turning to Figure 3-3, the Bancor Bond Profit Protection essentially holds around $ 1 billion as of May 2021. Therefore, when liquidity is added to the pool, the system. In Figure 4-1, total BNT token revenue increased from 30 million tokens, from around 200 million tokens to 230 million tokens in the six months of May 2021 to today. From May to present (24 months), that is 6 big lakes (main commodities like WBTC, ETH, LINK, DAI, USDT, etc.) and 2 The middle lake is reserved for mining industry, only about 14.88 million. to 2936 if BNT is provided. At the same time, combined with the v2.1 content announced by the team, the contract price created by the exchange can be profitable over time.

Therefore, it can be determined that the primary reason for the current appreciation of the BNT token is mining liquid, and not the process by which the BNT token is permanently cleared.After version v3, the total number of tokens will increase further, so that the number of BNT tokens in the process will increase further and therefore the total tokens will increase accordingly, but the accuracy of the tokens is often affected by mining activities. For the loss of me and BNT permanent forge (price holders cannot pay the permanent loss).

And in version v2.1, constant drop count is set after end time, and for longer periods constant drop count is possible. Version v3 adds immediate loss, requiring word of mouth, which can create a competitive environment for contracts and increase contracts to guarantee losses forever.

Résumé:

1) In version 2.1, the overall increase in BNT was mainly due to the increase in BNT for improving mining capabilities and forging processes, resulting in changes in the industry standard BNT. .

2) Unlimited liquidity leads to an increase in contract liquidity, which increases the total amount of BNT, but increases liquidity and fake contracts.BntUnlimited liquidity does not essentially affect the authenticity of the tokens in circulation, as liquidity decreases when liquidity is withdrawn.

3) There may be some arbitrage margin in the current liquidity defense, which will increase the pay rate in the permanence of the contract and increase the likelihood of additional BNT tokens for payment. The total number of tokens may increase.

5. Concurrence

5.1 Business process

Bancor belongs to the segmentation stream: DEX.

5.1.1

DEX statusYou can understand the current state of the DEX field in your trading data.

Figure 5-1 Monthly DEX Trading Volume (2019.01-2021.10)

In Figure 5-1, you can see that the DEX track remains intact until June 2020. As of June 2020, the DEX track was announced in January 2021 after entering the packaging industry. Mainly due to the growth of the business platform, the improvement of the DeFi ecosystem and the development of the whole chain ecosystem.

Figure 5-2 DEX Market Share (December 2020 ~ November 11, 2020)

As you can see, most of the market is focused on Uniswap (red flower), Sushiswap (green), and Curve (big red). The remaining DEXs, which hold the majority of the market, include 0x Native (rose red), Balancer (blue), and Bancor (turquoise). Bancor's volume ratio started to increase in March 2021 and peaked in May 2021. Since June, Bancor volume and market volume have decreased. You can zoom in on last year's volume data at the weekly level to see a clear and stable hierarchy.

First level:Uniswap. Typically, they have a share of more than half of their market share, up to 75%.

Second level:SushiSwap, parentheses and 0x. Sushi Swap's share is between 10-20%, but even more than 20% has fallen on Uniswap. Curve is owned by the real estate contracting firm and has a market cap of 6% to 10%. 0x is the leader of the command process, and most of the current DEX commands below use 0x.

Third:Bancor, balancer, sleep. Residents were checked at 1% and 5% for the long term.

Fourth year:The packaging industry's market share has long been less than 1%.

Figure 5-3 Top 10 DEX Cash

More fluids on AMM DEX usually mean better market value. As such, financial service providers (LPs) are key players in the DEX AMM. Besides issues such as security, DEX's preference for commercial resources is largely based on income, including exchange rates and mining subsidies. In Figure 5-3, we can see that Curve, Uniswap, and Sushiswap are in their early stages, with TVL over $ 4 billion. (Curve calculates data aggregation across multiple chains, while Uniswap and SushiSwap only count data from the Ethereum chain, which is a big difference.) Phase two is Bancor and Balancer, with turnover of about $ 2 billion.

5.1.2Separation

As the data in 5.1.1 show,Uniswap is the leader in DEX and the rest of DEX competes for the rest of the market.Competition in DEX is generally driven by sales and demand competition. The DEX process is extensive and involves a wide range of partnerships (Traders, Judges, LPs (separate for Traders and Manufacturers), Partnerships and more. DeFi Activities), each has their own rules.DEX leaves room for different product ideas.We generally call the DEX the AMM paradigm and the two outer distributions of the AMM paradigm.

①AMM Paradigm AMM is the main component of the current DEX, and the main characteristics of the current intensity are divided as follows. Table 5-1 PowerPoint AMM

Note: The above distribution is based on PowerPoint on Business Logic and the format is not perfect.

② From the point of view of going too far outside the AMM paradigm, the agenda is the best model on paper. The two parties to the order are free to express their commercial interests (price, lots), but AMM can only choose one. In financial terms, the order book is the most used. Currently, blockchain and Defi are still in their infancy and their performance is poor, resulting in expensive costs and inefficiencies, reducing the effectiveness of the sanction comparison. However, with the development of intermediate and primary technologies, the product market has become more diverse and there is potential that the DEX-wide exchange rate will support.

5.2 Competitive assessment

As the main role of Bancor is to compete with the best DEXs on market share, the following will focus on the development and improvement of Bancor v3 and compare to the DEX side above (Uniswap, Sushiswap, Curve ). It should be noted that at present it is difficult to find a guide that will measure the structure of the whole market, and volume and TVL are still important. Calculating the permanent loss is difficult and cumbersome, so the information below does not include the permanent loss of the contract.

5.2.1 Volume, users and revenuevolume of trade

The main purpose of the decentralized exchange is to facilitate the exchange of tokens between traders, and the packaging industry is an important indicator of the success of the decentralized exchange and will affect the actual price on the DEX. The increase in the packaging industry is also contributing to the contract's foreign exchange revenue, attracting more investors and improving the water quality of the DEX.

Figure 5-4 Comparison of market products

As shown in Figure 5-4, Bancor's packaging market lags behind the DEX leaders, with volume volatility being largely affected by the overall market.usersTable 5-2 Comparison of data changes over the past 7 days

Combined with Figure 5-4 and Table 5-2, it can be seen that Bancor product volume and trade volume are lower than Uniswap and Sushiswap, while trade volume per capita is higher. to Uniswap and Sushiswap, as shown in the curve. .

Here's why:

1) Uniswap and Sushiswap have a major impact making it the top choice for registering a project exchange business. Long tail tokens have less liquidity and higher slippage, resulting in lower trading volume, resulting in lower average trading volume. At the same time, long tail tokens can carry larger product to heat contracts, which is beneficial for larger contracts.

2) Curve is an industrial asset, and the main asset has good product quality, but the contract is difficult, the cost of fuel is high, and is not suitable for small businesses.

3) Bancor's WETH, wBTC, BNT, LINK, MATIC, which have the best throughput, will be better than Uniswap and Sushiswap at some point, and Bancor's business model is more difficult and will have to jump, so the costs of fuel will be more expensive. , not suitable for microtransactions. Things will improve when Bancor v3 is released.IncomeThe information below does not include permanent loss for commercial providers, user income should be the total income permanently deducted. DEX exchange rates typically pay 0.3% of the exchange rate, the higher the bond income, the higher the exchange rate. Profits higher than DEX are attractive to financial service providers, aware of the positive cycle. Bancor business partners typically pay a rate of 0.1% to 0.2%, and some competitive markets vote to change their rates as a percentage of their DAO.

Figure 5-5 Comparison of contract revenue (2021.06-2021.11)

As shown in Figure 5-5, Uniswap's revenue is far ahead of other DEXs with an average daily income of over US $ 4 million, while the average daily income for Bancor and Curve the contract is around 100,000 US.

5.2.2 Liquidity

The cost of closing can measure the growth of the DeFi contract and the potential of DEX. The higher the lock rate, the greater the potential available to DEX. More fluids reduce costs and improve market efficiency, allowing greater efficiency for the consumer. The aggregation protocol is also preferred over DEX which offers the best value for money compared to the competition. position.

Figure 5-6 10 Liquidity comparison (2021.11.30)

As shown in Figure 5-6, it can be seen that the major Uniswap token pools, such as ETH, WBTC, and Coin Stable, outperform Bancor. Bancor currently only has the first 9 tokens with over $ 10 million in cash, and most pools are also small, making it difficult to offer better prices. Table 5-3 Comparison of the liquidity of certain tokens (2021.11.30)

It can be seen from Table 5-2 that some of the Bancor pools are competitive, the lower BNT trading volume is also due to less "healthy" pools and fewer token types. may change normally. . Due to defensive performance, the biggest challenge is to limit the addition of a currency to a currency, so once the capital has been withdrawn, Bancor's profits can be lost, increase income and compete for a share. Steps.

5.2.3 Disability planning

Currently, Bancor and DoDo are the main DEX solutions aimed at the permanent decline of the market. Based on the practice of the last year, Bancor solutions can help providers who have been constantly plagued by exchange rates and, if necessary, BNT counterfeiting to complete the guarantee to 100%. Dodo Solutions introduces Oracle tokens, and there is a difference between Oracle tokens and real-time trading costs, which makes the business more stable with more losses. Currently, the largest volume of Dodo trading containers are Stabilitycoins. In other words, Bancor is currently the only DEX on the market to have successfully “solved” the problem of permanent decline, and its business model is stable.

Summary: Judging from the current data, the Bancor issue works better than version v1, but it still lags behind the top DEX and it is difficult to compete for much of the industry at the top.Bancor v3 version offers the ability to re-extend water in the contract and can also change the current state by improving income from fixed assets and altcoins (e.g. ENJ, LINK, EDEN and other tokens). Optimizing perpetual losses and increasing profits for liquidity providers is a relatively good direction for growth, and there is an opportunity to improve Bancor's competitive advantage.

6. DangerParadigm shift

The order book is the best business model, and this business model has been used for many years, if not hundreds of years, in the real estate and financial world. The process can take a long time to take control due to the lack of capacity and functionality in the process. In the long term, the market will be dominated in the future by high orders and MAs. It should therefore be monitored regularly.

market competition

Now DEX's head effect is evident, and Uniswap, Sushiswap and Curve have long been in the majority of the market and are developing their own ecosystem, project stakeholders and clients can be used to create head effect .

Applications

https://app.bancor.network/tokens, Bancor official website

https://www.tokenterminal.com/, Token Terminal Data Website

https://defipulse.com/, information site on Defipulse

https://dune.xyz/Bancor/bancor_1, DuneAnalytic data analysis website

https://asset.first.vip/uploads/20210817/_ 第 6 期 _Bancor-75319246.pdf, Bancor First Class Report

https://blog.bancor.network/, Blog Bancor