[BNT] MIP6 Collateral Onboarding Application

[BNT] MIP6 Collateral Onboarding Application for Bancor Network Token

  1. Who is the interested party for this collateral application?

@monet-supply

  1. Provide a brief high-level overview of the project, with a focus on the applying collateral token.

Bancor operates as a decentralized exchange and market making platform, allowing users to seamlessly exchange and provide liquidity for blockchain assets. BNT acts as the “bridge” asset (similar to ETH on Uniswap v1), enabling any two tokens to be traded against each other.

  1. Provide a brief history of the project.

Bancor is named after the theoretical trade balancing international currency proposed by John Maynard Keynes. Bancor conducted an ICO in 2017, raising roughly $150M, and released the first operational constant function market maker.

Bancor v2 introduces several potential improvements, including the ability to provide liquidity without needing to stake BNT, as well as integration with Chainlink price oracles to mitigate impermanent loss and enable single asset liquidity provision.

  1. Link the whitepaper, documentation portals, and source code for the system(s) that interact with the proposed collateral, and all relevant Ethereum addresses. If the system is complex, schematic(s) are especially appreciated.

Whitepaper: https://drive.google.com/file/d/0B3HPNP-GDn7aLXFWOFpTZEgyaEk/view

Documentation: https://docs.bancor.network/

Website: https://www.bancor.network/

Source Code: https://github.com/bancorprotocol/

BNT token contract: https://etherscan.io/token/0x1f573d6fb3f13d689ff844b4ce37794d79a7ff1c

  1. Link any available audits of the project. Both procedural and smart contract focused audits.

Bancor v1

Note: Bancor had a recent security incident shortly after the release of the Bancor v2 contracts. The team’s post-mortem can be found here.

Bancor v2 audits are forthcoming, I have not been able to find when exactly they’ll be available.

  1. Link to any active communities relating to your project.

Twitter: https://twitter.com/Bancor

Reddit: https://www.reddit.com/r/Bancor/

Telegram: https://t.me/bancor

Dev Telegram: https://t.me/BancorDevelopers

  1. How is the applying collateral type currently used?

Bancor Protocol comprises a system of constant function market makers (similar to Uniswap) that allow for the exchange of Ethereum and EOS assets (info about the ETH/EOS chain swap mechanism can be found here). Bancor uses BNT as the bridge asset (like ETH in Uniswap v1) that allows for trading between non-BNT assets.

  1. Does one organization bear legal responsibility for the collateral? What jurisdiction does that organization reside in?

BNT is a decentralized asset.

  1. Where does exchange for the asset occur?

BNT is traded on centralized exchanges such as Binance, Bittrex, and OKEx, as well as decentralized platforms such as Kyber, Uniswap, and Bancor itself.

  1. (Optional) Has your project obtained any legal opinions or memoranda regarding the regulatory standing of the token or an explanation of the same from the perspective of any jurisdiction? If so, those materials should be provided for community review.

I am not aware of any publicly available legal opinions addressing the project or token’s regulatory standing.

  1. (Optional) Describe whether there are any regulatory registrations for the token and provide related documentation (including an explanation of any past or existing interactions with any regulatory authorities, regardless of jurisdiction), if applicable.

As far as I know, BNT is not registered with regulatory authorities in any jurisdiction.

  1. (Optional) List any possible oracle data sources for the proposed Collateral type.

Centralized exchanges from (9) may offer price feeds for BNT.

  1. (Optional) List any parties interested in taking part in liquidations for the proposed Collateral type.

n/a

Disclosure: I hold BNT

13 Likes

Keep them coming Monet! Damn you hold a lot lol.

A little of a lot. Fomo insurance.

My opinion is that BNT is not so good project.

  1. I never used Bancor exchange because I rather use Uniswap, 1inch, Kyber, Curve … it is easier and without needing any token, any phone or kyc registration
  2. I am not sure If Bancor team is concentrating on Layer-2 solutions like Loopring or Deverify, but I am sure it should be now top priority
  3. Bancor should be checked by some security research company like Trail of Bits before etc, because this kind of vulnerability can repeat: https://www.theblockcrypto.com/post/68791/dex-protocol-bancor-suffered-security-vulnerability-migrated-455k-worth-of-user-funds

Sorry to hear you feel that way. I work on the Bancor project and would like to address your points as you’ve shared some incorrect information.

  1. Bancor does NOT require a token, phone number or KYC registration. On bancor.network (the front-end built by the Bancor core team) you can use MetaMask, Fortmatic and other non-custodial wallets to trade tokens. Furthermore, Bancor’s permissionless contracts are also integrated with numerous trading and staking front-ends, including both 1inch.exchange and Kyber, so you may be using Bancor without even knowing it.

  2. We’re definitely focused on Layer-2 solutions. We haven’t publicly released a demo yet. Stay tuned.

  3. Lastly we handled this vulnerability immediately & no user funds were lost. Indeed V2 contracts are being stress-tested & audited by Consensys Due Diligence, 1inch & others.

8 Likes

Where can I found more info to these points? I checked www.bancor.network, but there is no link to blog, articles, L2, audit …

Check blog.bancor.network

2 Likes

I checked this article https://blog.bancor.network/announcing-bancor-v2-2f56b515e9d8 and there is written: “The full technical details of Bancor V2 will be shared leading up to its planned release in July” … that means you are going to big upgrade, but “nobody” know if it will really work. I tried to check how you can erase Impermanent Loss, but it is your secret now, that means I cant say if it is good or not. Ergo my personal opinion is not with favor before Bancor V2 will run at least several months without problems, with higher volumes and more users.

We’ve already started explaining the mechanics and math behind Bancor V2 on the recent Community Call and in this article: https://blog.bancor.network/calculating-dynamic-reserve-weights-in-bancorv2-538b901bcac4

Following the completion of V2 code security audits by Consensys Dilligence, 1inch.exchange and other teams, we’ll be open sourcing the code to the community with a bug bounty ahead of the main net release.

7 Likes

Bancor has already started explaining the mechanics and math behind Bancor V2 in the following forums:

Following the completion of V2 code security audits by Consensys Dilligence, 1inch.exchange and other teams, Bancor will open source V2 code to the community with a bug bounty ahead of the main net release.

6 Likes

I’ve been working with Bancor from the ICO. They are very innovative and token volume/utility has gone up over the last several months. They are designed to be a liquidity reserve token so this looks like a great fit.

Where can I see the status of [BNT]MIP6?

It’s passed the community greenlight poll. Now it’s up to the Maker domain teams to prioritize it among other active collateral applications. Once it is being worked on, it will be listed in the “Planned” section at the top of the collateral status thread.

1 Like