[BNT] MIP6 Collateral Onboarding Application for Bancor Network Token
- Who is the interested party for this collateral application?
- 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.
- 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.
- 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.
Source Code: https://github.com/bancorprotocol/
BNT token contract: https://etherscan.io/token/0x1f573d6fb3f13d689ff844b4ce37794d79a7ff1c
- Link any available audits of the project. Both procedural and smart contract focused audits.
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.
- Link to any active communities relating to your project.
Dev Telegram: https://t.me/BancorDevelopers
- 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.
- Does one organization bear legal responsibility for the collateral? What jurisdiction does that organization reside in?
BNT is a decentralized asset.
- 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.
- (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.
- (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.
- (Optional) List any possible oracle data sources for the proposed Collateral type.
Centralized exchanges from (9) may offer price feeds for BNT.
- (Optional) List any parties interested in taking part in liquidations for the proposed Collateral type.
Disclosure: I hold BNT