The DeFi Download

Bancor: the original DeFi project on Ethereum

November 12, 2021 Radix DLT
The DeFi Download
Bancor: the original DeFi project on Ethereum
Show Notes

Bancor: the original DeFi project on Ethereum

With Mark Richardson, Head of Research 

Piers Ridyard talks with Mark Richardson, the Bancor Protocol's Head of Research, in this episode of the DeFi Download. They dip into Bancor's history and innovations, its past controversies, and the source of its high yields. 

Bancor is the world's first decentralized trading protocol, allowing traders, liquidity providers, and developers to participate in an open market with no entry barriers. The use of the open-source Bancor protocol is not restricted.

The Bancor protocol was created as a response to the low-interest rates offered by traditional bank products. Bancor users can invest their cryptocurrencies in this product and earn interest from market-making fees generated. Bancor is essentially a savings product that allows you to earn passive income from your capital. 

Due to the current state of DeFi, users can currently earn approximately 60% per year with the Bancor Network Token.

[0:44] ELI5: What exactly is Bancor, and why should I care about it?

[2:43] What kinds of assets can I invest in, and how much can I earn as a user on Bancor? 

[4:08] What is the source of the Bancor Network Token's (BNT) 60% interest rate?

[15:14] What sets Bancor apart from Uniswap and SushiSwap as an automated market maker, and what gives Bancor its unique ability to provide only one side of the market?

[19:39] How does Bancor protect against impermanent loss?

[26:28] Bancor's history as one of the first DeFi projects, long before the term "DeFi" was coined

[29:48] The definition of a ‘community currency’

[33:00] Bancor’s innovations and role as a pioneer in the crypto space

[42:01] The elegance of Uniswap V3

[44:57] The weak points of Uniswap V3 and how Bancor approaches them in a different way

[48:48] The upcoming release of Bancor V3

Further resources