What Is Bancor (BNT) and How Does It Work?
Bancor (BNT) is a decentralized finance (DeFi) protocol designed to enable on-chain token swaps and automated liquidity provision without relying on traditional order books. Launched as one of the earliest
automated market makers (AMMs), Bancor focuses on improving capital efficiency and reducing friction for liquidity providers. Its native token, BNT, plays a central role in maintaining liquidity, governance, and protocol incentives across the ecosystem.
Bancor works through smart contracts deployed primarily on the
Ethereum blockchain, using liquidity pools instead of buyers and sellers matching trades directly. Unlike many AMMs, Bancor introduced single-sided liquidity provision, allowing users to deposit just one token into a pool rather than a trading pair. The protocol uses BNT as a routing and settlement asset, enabling swaps between different tokens while helping balance pool liquidity.
Over time, Bancor has evolved beyond its original AMM design with the launch of Carbon DeFi, a complementary protocol focused on automated, on-chain trading strategies. Together, Bancor and Carbon aim to serve both passive liquidity providers and more active traders, positioning Bancor as a flexible DeFi infrastructure layer for decentralized trading and liquidity management as of February 2026.
When Did Bancor Network Launch?
Bancor launched in 2017, making it one of the earliest decentralized finance (DeFi) protocols and a pioneer of the AMM model. The project was founded by Guy Benartzi, Galia Benartzi, Eyal Hertzog, and Yudi Levi. Bancor gained early attention after raising significant funding through one of the first major ICOs and introduced a new approach to on-chain liquidity using smart contracts on Ethereum. Over the years, the protocol has evolved from a simple token swap mechanism into a broader DeFi liquidity and trading infrastructure governed by a DAO.
Bancor Roadmap Highlights
- Launch of AMM protocol and BNT token in 2017
- Introduction of single-sided liquidity provision and protocol-managed liquidity
- Deployment of impermanent loss protection mechanisms for liquidity providers
- Transition to DAO-based governance and community-led upgrades
- Expansion of protocol tooling and analytics for liquidity management
- Launch of Carbon DeFi to support advanced, on-chain automated trading strategies
What Is the BNT Token Utility?
BNT is the native utility and governance token of Bancor, designed to support liquidity, protocol stability, and decentralized governance. It is used as a core liquidity asset within Bancor pools, helps facilitate token swaps, and enables BNT holders to participate in DAO governance by voting on protocol upgrades, incentives, and risk parameters. BNT also plays a role in balancing liquidity across pools and aligning incentives between liquidity providers and the protocol.
You can trade BNT tokens on the
BingX spot market by creating a BingX account, funding it with supported assets such as
USDT, and selecting an available
BNT/USDT trading pair. BingX offers a user-friendly interface with real-time charts, multiple order types, and deep liquidity, allowing you to buy or sell BNT efficiently based on your trading strategy.
What Is Bancor Network Tokenomics?
The Bancor Network uses BNT as its native token with a dynamic supply model designed to support protocol liquidity and long-term sustainability. Unlike fixed-supply tokens, BNT can be minted or burned by the protocol in response to liquidity conditions, allowing Bancor to maintain balanced pools and facilitate efficient token swaps across the network. As of February 2026, this adaptive tokenomics model remains a defining feature of Bancor, differentiating it from traditional AMMs with rigid supply structures.