Bancor’s BancorX cross-chain decentralized exchange (DEX), which serves as a token converter between Ethereum and EOS blockchain, is now live.
BancorX was developed in cooperation with one of the most prominent EOS block producers, LiquidEOS, who previously announced Bancor Protocol as an EOS block producer candidate.
BNT in the center of the system
The new DEX is relying on Bancor’s BNT token to work on both blockchains, bridge the gap between them, and enable cross-chain transactions of more than a hundred Ethereum and EOS-based cryptocurrencies.
Similarly to Ripple’s xRapid Protocol, where the XRP token is used for cross-border payments in different currencies, BancorX leverages its native BNT token. The system first converts the first currency, say an ETH token into BNT and then sends the BNT tokens to the EOS blockchain where they are converted into the EOS-based tokens.
ETH Token → BNT → EOS Token
Simply put, provided that user has an EOS account, he can freely trade tokens from the Ethereum to EOS blockchain, without transaction fees, deposits, or order matching.
Liquidity is the focal point of every exchange, and BNT token is going to provide what’s needed, as the foundation behind Bancor, Bprotocol, is going to lock up $10 million worth of BNT into a secure account on the EOS blockchain to bring in the initial liquidity and act as a market maker.
By putting their native token as a pivotal point of the exchange, Bancor could achieve high volume and liquidy for BNT should the platform gain traction and wider adoption.
Some of the projects listed are:
Big ICO – slow start
During the widespread ICO mania of 2017, Bancor was one of the most hyped up projects in the market. However, it’s record-breaking $153 million fundraising campaign may have lullabied the development team as the community grew thinner while waiting for the delayed release of the product.
However, now that BancorX has seen the light of day, the development team has announced a 500,000 BNT bounty program for developers to improve Bancor’s EOS contracts and user interface, which may attract lost community members back.
At $1.30, BNT is far from its all-time high of $10, currently 70th largest cryptocurrency on XBT.net by market capitalization. The recent price stagnation has seen its daily trading volume fluctuate between $1 million and $4 million for quite some time.
Until now, the main source of volume came from trading on the Bancor network instead of the expected major exchanges, such as Binance, where BNT is also listed. Looking beyond the speculation, this can be viewed as a positive trend one which Bancor is self sustained.
BancorX isn’t the first platform bridging the gap between two blockchain worlds we had the privilege to experience this year.
Last month, XBT.net reported that the EOS-focused development team under the name shEOS developed a cross-chain peg named EOS21 Protocol, which allowed a one-way migration of ERC-20 tokens to the EOS blockchain.
The two-directional trading solution provided by Bancor is another step forward in cross-chain interoperability between two smart contract platforms.
Obviously, the interoperability between Ethereum and EOS, as competing ecosystems, is catching the imagination of developers focused on EOS. By making these chains bridged, they are hoping to promote the EOS ecosystem, and finally push it towards its predetermined title of the Ethereum killer.