Introduction

Welcome to another startup spotlight with Building Web3. Today, we learn about Bancor Network, a decentralized exchange (DEX) platform that facilitates seamless trading of various cryptocurrencies. Leveraging Automated Market Maker (AMM) protocols, Bancor provides continuous liquidity and efficient token exchanges without traditional order books. Recently, Bancor introduced Carbon DeFi, a decentralized trading mechanism designed to enhance user experience by offering features such as on-chain limit and range orders, providing resistance to Miner Extractable Value (MEV) sandwich attacks.

Mission and Technology

Bancor’s Mission

Since its inception in 2017, Bancor’s mission has been to innovate decentralized exchange technologies. Initially, Bancor aimed to improve upon EtherDelta, the first true decentralized exchange, by introducing the AMM model. This model eliminates the need for centralized order books and intermediaries, making trading more secure and efficient.

Key Features of Bancor and Carbon DeFi

1. Automated Market Maker (AMM): Bancor’s AMM facilitates token exchanges by providing liquidity and reducing slippage.
2. Carbon DeFi: A protocol enabling users to execute automated trading strategies with on-chain limit and range orders, eliminating sandwich attacks and providing zero slippage for makers.
3. Fast Lane: An open-source arbitrage protocol integrated into Carbon DeFi, allowing users to capitalize on price discrepancies and enhance liquidity.

Community Engagement and Feedback

Educational Marketing

Bancor emphasizes educational marketing and community engagement. Jen highlighted the importance of educating users on DeFi concepts and product features through various channels like Twitter, Telegram, and direct user interactions. This approach not only helps in user acquisition but also provides valuable feedback for product improvements.

Feedback Integration

1. Template Suggestions: Based on user feedback, Carbon DeFi’s interface now includes templates for different order types (limit, range, recurring orders) to enhance user intuitiveness. Jen mentioned, “This was a direct suggestion from a community member who said, this would be so much more intuitive if you just show me these templates.”
2. Backtesting Tool: A community-driven addition that allows users to backtest their trading strategies using historical data, providing a comprehensive view of potential outcomes. Jen explained, “Users can go in and they can choose their token pair, back test it up to 365 days using real historic data.”

Security and Governance

Decentralized Security

Bancor’s security framework is built around decentralization, reducing single points of failure common in centralized systems. Carbon DeFi’s resistance to sandwich attacks and robust order execution mechanisms further enhance security.

Community Governance

Governance is managed by the BancorDAO, where BNT token holders participate in decision-making processes, ensuring that the protocol evolves with community interests in mind. Mark noted, “It’s a way to make sure our development and operational decisions align with what the community wants.”

Future Developments

Upcoming Milestones

Looking forward, Bancor plans to continue expanding its features and user base. Key milestones include the native deployment on the Sei network and licensing Carbon DeFi technology to other projects. Jen shared, “The native deployment on Sei is a really big milestone. We’ve had licensees since then deploy the contracts on base Phantom and Mantle.”

Expanding Use Cases

These developments are expected to introduce new use cases and integrations, further advancing the DeFi ecosystem. Mark teased, “In my private GitHub, there are other elements to carbon that have yet to be realized, but for those who have been through my lecture material on YouTube, will I think be able to sort of read between the lines and understand what I would like to achieve at the fullest realization of what the system can become.”

Connect with Bancor and Carbon DeFi

If you want to hear directly from Bancor’s team about the latest developments of Bancor Network and their groundbreaking work, check out their interview with Building Web3 below:

As always, stay tuned to the Building Web3 podcast and follow Jax Dwyer for more insights and developments in the Web3 space.

Disclaimer: This post is for informational purposes only and does not constitute financial advice or a solicitation for the sale or purchase of securities.