/biz/ - Business & Finance

>>20120240
> inb4 token not needed
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 succesfully implemented, there's no ceiling to how much BNT could pump.

>>20120247
What does V2 mean? It's a protocol update that brings the following new features:

1) new version of Automated Market Making (AMM) that eliminates the risk from impermanent loss (HUGE problem with all AMMs that has previously stopped market participants from providing liquidity into the pools)
2) EVERYONE can provide liquidity to Bancor pools with just their token of choice, which hasn't been possible before. That means you can earn trading fees from staking LINK or RSR, while not having to have exposure to any other tokens in the liquidity pool. That means all the digital assets that don't have staking will move to Bancor to earn trading fees
3) amplified bonding curve that reduces price slippage now also available for volatile assets (example: AMM with $100k in its reserves has 10% slippage on a $10k trade; but if you introduce 20X amplification, the slippage on the same trade will be reduced to 1%). That means buying/selling will have less slippage than on centralized exchanges. All trading will be done in Bancor
4) as a liquidity protocol they provide liquidity to lending protocols and this means that all decentralized exchanges will outsource liquidity from Bancor, which means Bancor liquidity pools become even larger and more profitable; this creates additional demand for BNT (liquidity loop)

>>20120240
How much BNT do I need to make it?

>>20120247
This pasta needs to be edited to be less wall of text.
>>20120527
As much as you can get under $5.

I bought a suibag of 1,200 tokens. Should I get more lads?

>>20120696
>>20120527
just try to get minimum 10k before it goes on a run

>>20120841
Price target?

>>20120841
Will it pump though, anon?

>>20121152
Listen anon. It's the lowest marketcap and PE in Defi. It will be the only Defi AMM that has single asset staking(most people don't wanna split their assets 50/50). No impermanent loss (most uniswap pools lose money). Unironically they are going to gain the most liquidity in Defi and thus volume if their V2 works as intended.
Oh and we've got a potential coinbase listing and we all know what that means...
If V2 works, $10 is quite easy(it already was at $10 at ATH btw). If the Defi craze keeps going, skys the limit, $60 is probably about right.

>>20121152
did you even read the second post?

it's inherently designed to pumo

So what’s our timeline look like? When are we $5? When are we $10? What’s the ceiling? When? I bought 800. I could maybe hit 1k.

>>20122173
$5 after a few months into V2 update
$10 after first tradfinance capital starts coming in within this year

>>20122391
Alright, I'm up to 1k.

>>20122391
This is fud

>>20120257
Will Burgers be able to stake $BNT?

>>20123233
yes

This "defi gem" has been hacked(funds stolen and donated to Israeli intelligence agencies) several times. Nice try.

>>20124202
serious brainlet detected