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/biz/ - Business & Finance

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21108653 No.21108653 [Reply] [Original]

got about 3K KNC
fucking slowmoving as hell
should i move it to BNT?
BNT V2 is in huge demand

>> No.21108675
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21108675

Someone redpill me on BNT

I want to buy a huge stack maybe.

>> No.21108752
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21108752

>>21108675

>> No.21108756

>>21108675
You want Bancor holders to do the emotional labour of explaining to a no-Bancie that he should buy bnt? Fuck you no way.

>> No.21108878

>>21108756
Bancor is the new market leader in LPs and yield farming. No impermanent loss, minimal slippage, 20x liquidity enhancement.

Very soon, all your LPs will belong to Bancor.

>> No.21109002
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21109002

>>21108675
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.

>> No.21109119

>>21108675

BNT go moon moon. Numbers go up big big. Buy BNT