AMON Bancor Announcement
Amon’s Integration With the Bancor Protocol To Provide Decentralized Liquidity For AMN Token Holders
We are pleased to announce that Amon will be adopting the Bancor Protocol. Using the Bancor Network, holders of the Amon token (AMN) will be able to convert AMN to any other token on the Bancor Network. Users who want to buy AMNs will be able to buy them directly through the Bancor Web App.
For example, if you have BNT tokens, you can directly buy AMN tokens, or if you have AMN tokens you can exchange them directly to any token listed on Bancor without needing to exchange it to ETH first.
Bancor is not like other exchanges where people trade tokens. The Bancor Protocol involves various Relay Tokens. A Relay Token is an ERC20 compliant token that is configured with two connectors, one that holds a balance of BNT and one that holds a balance of another ERC20 token. So, it can be AMNBNT (Amon Bancor Relay) or ETHBNT (Ether Bancor Relay). Converting one token for another is done through these relays on the Bancor Network.
Understanding the Amon token Relay:
The Relay Token will hold two token types. One is the AMN and the other is BNT. People who want to convert tokens using our Relay Token can send one type of token to our Relay Token (like BNT) and this will then buy an intermediate token called AMNBNT. This will then be exchanged for AMN.
Each step of the transaction will incur 0.1% transaction fee. There were two conversions in this case, so the fee would be 0.2%.
Therefore, using a transaction path we can convert AMN to any other token on the Bancor Network.
ETH > BNT > AMNBNT > AMN (this can also work in reverse)
Why BNT tokens?
Bancor network contains a collection of Relay Tokens, each of which has BNT and their own currency. So using the path explained above you can easily convert/trade between AMN and any other token. Even Ether.
When our Amon Relay launches, anyone will be able to buy AMN directly from the Bancor Web App and current holders of AMN will be able to hold their AMNs in the AMNBNT relay and serve as a liquidity provider to the Bancor Network.
Bancor Protocol is a standard for the creation of Smart Tokens™, cryptocurrencies with built-in convertibility directly through their smart contracts. Bancor utilizes an innovative token “connector” method to enable formulaic price calculation and continuous liquidity for all integrated tokens, without needing to match two parties in an exchange. Smart Tokens interconnect to form token liquidity networks, allowing user-generated cryptocurrencies to thrive. To convert tokens instantly, visit the Bancor Web App or join the Bancor Telegram group for more information.