/biz/ - Business & Finance

these fuckers could have played the LINK pump if they didn't put a stupidly low limit on the v2 liquidity pool

The BNT token is crucial to all the Bancor AMM's (automated market makers) as it by design makes up 50% of each liquidity pool on the network. Why is that important? Market participants will be incentivised to stake their long hold token of choice in Bancor V2 liquidity pools due to getting no impermanent losses from staking and having the advantage of single token exposure, while earning trading fees as liquidity providers at the expense of traders executing trades. So if the value of the other tokens in the liquidity pools increases, the BNT proportional value has to increase as well to balance the pool. How will this happen? From BNT stakers getting more favourable dynamic fees if the pool is unbalanced. This creates more market incentive for people to buy additional BNT to 'arbitrage' the fee imbalance from the pools - price of BNT goes up.

Another important factor: the BNT supply will be inflated as BNT staking rewards will be given from minting new supply, which amplifies the potential earnings from staking BNT in addition to making profit from trading fees. If you're not staking your BNT, you will be diluted out of your market share %, so there's a game theoretical design for every holder to stake their BNT, which creates the following loop: the more BNT staked > the better the liquidity for traders > less slippage for traders > more volume > more fee earnings for liquidity providers > more demand for BNT > price of BNT goes up > deeper liquidity pools > less slippage > more volume > more fees > more demand for BNT > BNT price goes up and the loop goes on and on until all digital assets are being traded on Bancor or outsourced from Bancor liquidity pools.

That's what's called the 'liquidity black hole'. If that loop gets successfully implemented, there's no ceiling to how much BNT could pump.

Shabbat shalom

I BOUGHT THE FUCKING TOP I WAS TOLD THIS WOULD GO TO $3

The BNT token is crucial to all the Bancor AMM's (automated market makers) as it by design makes up 50% of each liquidity pool on the network. Why is that important? Market participants will be incentivised to stake their long hold token of choice in Bancor V2 liquidity pools due to getting no impermanent losses from staking and having the advantage of single token exposure, while earning trading fees as liquidity providers at the expense of traders executing trades. So if the value of the other tokens in the liquidity pools increases, the BNT proportional value has to increase as well to balance the pool. How will this happen? From BNT stakers getting more favourable dynamic fees if the pool is unbalanced. This creates more market incentive for people to buy additional BNT to 'arbitrage' the fee imbalance from the pools - price of BNT goes up.

Another important factor: the BNT supply will be inflated as BNT staking rewards will be given from minting new supply, which amplifies the potential earnings from staking BNT in addition to making profit from trading fees. If you're not staking your BNT, you will be diluted out of your market share %, so there's a game theoretical design for every holder to stake their BNT, which creates the following loop: the more BNT staked > the better the liquidity for traders > less slippage for traders > more volume > more fee earnings for liquidity providers > more demand for BNT > price of BNT goes up > deeper liquidity pools > less slippage > more volume > more fees > more demand for BNT > BNT price goes up and the loop goes on and on until all digital assets are being traded on Bancor or outsourced from Bancor liquidity pools.

That's what's called the 'liquidity black hole'. If that loop gets successfully implemented, there's no ceiling to how much BNT could pump.

$3 BY END OF DAY

BNT to $10 EOM

I understand ETH is pumping so weak hands are dumping BNT to chase the pump. But every other alt is doing well. We are dumping HARD. Don't get me wrong, I just picked up a nice big bag at a very nice discount. But what's going on here, there must be more to the story than the ETH moon. I read here some clever FUD where some anon claimed YFI has made BNT redundant. I don't know enough about defi since it's a fad that will never be used by serious people that aren't already in this market, but is there some truth to that or what?

WHY DID I TRUST THE JEWS

Price crashing, was V2 delayed anon right?
Hold me bros.. I went way too heavy in BNT for this to be happening

>>20554155
>AMPL needs to have a shitton of liquidity which currently doesn't have
If only there was a project that was launching an upgrade that essentially solves the liquidity problem...

Why the fuck does this keep ranging in a 20 cent band? Price suppression before v2 launch?

How are fellow Bancor chads doing today?

>>20499626
heh...

When is this going to break $2?

>$1.56 stable coin

I'm so excited, this is one of the clearest 10x projects I've seen in a while

>V2 launches at the end of July
>Liquidity starts flooding in to Bancor from other DEXs due to reduced impermanent loss and single token exposure
>Coinbase listing is certain since they're looking to make money from DeFi hype

>>20410990
>if ampl moons your impermanent loss is huge
why invest in AMPL when you can buy a shovel that will power all defi and dexes

t. day 4 geyser holder

are we allowed to stop keeping this hush yet?

If Bancor v2 is successful what will be the price of BNT?

I am financially unstoppable.

If you know, you know.