YouHodler Now Supports Bancor (BNT)
We are beyond pleased to announce the arrival of Bancor (BNT) to the YouHodler platform. Clients can now use BNT for the following:
- Crypto backed loans (with LTV up to 90%)
- Savings accounts (3% APR + compounding interest)
- Multi HODL
- Universal crypto/fiat/stablecoin conversion.
What is Bancor?
Bancor offers crypto traders automated market maker functionality. It’s a well-established mechanism to guarantee liquidity at every price level for users who want to exchange tokens without having to rely on centralized exchanges.
However, decentralized exchanges suffer from issues like high price slippage due to low volume. This is especially true for infrequently traded trading pairs. To solve this problem, Bancor uses the popular x * y = k pricing algorithm.
The Bancor project incentivizes users to lock their tokens into liquidity pools by offering them a share of the fees paid by users interacting with Bancor’s automated market maker. Their goal is to make niche crypto assets more liquid and help the project reach higher adoption.
What is Bancor Network token BNT?
Bancor uses their native Bancor Network Token (BNT) as the base currency for creating new trading pairs. Therefore, it acts as the reserve currency for all smart tokens created on the Bancor network. You can use Bancor to convert between Ethereum-based ERC20 tokens and EOS tokens. This is possible because the Bancor Network Token is both an ERC20 token and an EOS token. It’s a great move because it helps keep exchange costs down for traders who want to invest in EOS and Ethereum-based projects. It’s a significant advantage over competitive projects like 0x because they require an intermediary tool or exchange to exchange your tokens for a different protocol.
The Bancor project is one of the first projects to introduce automated market makers. The project was launched in 2017 in Israel with a mission to provide liquidity for small and mid-cap projects on the Ethereum blockchain and other blockchains like EOS.
If you like the Bancor, you can use your BNT tokens with YouHodler’s savings accounts to earn a 3.0% APR. On top of that, BNT is available for classic loans, Turbo Loans, and Multi HODL.
DEPOSIT BNT NOW