BNT is a smart token, as conversions are made, BNT is sent from/to the contract and destroyed/issued! You can learn more about smart tokens here: https://support.bancor.network/hc/en-us/articles/360000472072-How-does-a-Smart-Token-work-And this relevant piece: Buyers can use any of the connected tokens to purchase a Smart Token by sending them to the Smart Token’s contract, which then adds them to its connector balance and in return issues new Smart Tokens, which are automatically sent back to the buyer. In this case, both the connector balance of the Smart Token has increased, as has the Smart Token’s supply, since new units were issued. Similarly, a seller may send back a Smart Token to its contract, which will then remove these Smart Tokens from circulation and withdraw a corresponding amount of connected tokens from the connector balance, which will be automatically sent to the seller. In this case, both the connector balance and the Smart Token’s supply have decreased.
hi, i exchanged one of the EOS tokens for relay roken BNT *, its value fluctuates, once I have more than I had and once less. Is it the case that the longer I keep the Relay Token the better or can it be that after a month I will pull less than I put.
"Relays generate fees with each conversion they process, and Relay Tokens can be sold at any time to withdraw a proportional share of the Relay’s liquidity."To expand on that:"Relays are designed to perform token conversions that also accrue value for liquidity providers. Each time a Relay processes a conversion, a small liquidity provider fee is taken out of each trade and deposited into the Relay's reserves. These fees function as an incentive for liquidity providers who can withdraw their proportional share of the reserves including the accumulated fees at any time."
Yes divergence in the prices of the pool’s underlying tokens can cause impermanent loss greater than generated conversion fees, so that the value of the Relay Tokens is less when you sell them (i.e., withdraw the liquidity). There are tools being built that will allow for greater optimization and tracking of pool liquidity, and ways to reduce exposure to market volatility for liquidity providers. One of those mechanisms - BUSD, a stable version of BNT - is already in the works and could reduce risk of loss: https://twitter.com/natehindman/status/1169715702573518850?s=21
Watch this great video from @ImaginingTech to learn about how to create stable assets out of any erc 20 token with the Peg Network!https://www.youtube.com/watch?v=ubzN10d1mjg&feature=youtu.behttps://twitter.com/techimagining/status/1169790217609461760?s=21
Hey Ficile! Maybe you haven't been around but there is a lot of big things going on with Bancor! It only gets better!! Have you seen the latest? Peg Network has released BUSD, a stable version of BNT that could be used in Bancor liquidity pools.Learn more: https://twitter.com/Bancor/status/1169628689816068096
@Ficlle Here is the news about Bancor staking: https://t.me/BancorNews/357and recently Bancor's Ethereum smart contract documentation was published enabling more devs to build on the Bancor protocol https://t.me/BancorNews/364
Just to be clear, BNT's dynamic supply doesn't mean that BNT can just be printed like the dollar. BNT is a smart token, this means that the token is issued when its connected token (in this case ETH) is sent into the smart contract. So, both the connector balance of the Smart Token has increased, as has the Smart Token’s supply. You should read https://support.bancor.network/hc/en-us/articles/360000472072-How-does-a-Smart-Token-work- for an in-depth explanation.
Ok at the end this means that staking the bnt also doesn't help in any cases with the price ,because the circulating supply doesn't really change and with every smart token connected , new bnt will be printed....like I said there is only one winner of this.....the printer himself ;)