We are working on a new smart contract (the announcement of the new about the smart contract improvement https://steemit.com/fintab/@fintab/we-are-improving-the-smart-contract-fintab) and we plan to implement the Bancor Protocol.
Bancor Protocol is a promising technology that turns any token into a “smart-token” that will automatically without any additional actions from the author traded or exchanged for any smart-token.
How is works
A smart token contains one or more other tokens that form a “reserve”, which allows anyone in real time to buy a smart token in exchange for any of their backup tokens, according to a special formula that balances the volumes. The percentage of reserve that the author chooses is called Constant Reserve Ratio (CRR). The reserve currency can be any ERC-20 token.
In our case, we plan to use the Bancor token as a backup token and set the CRR initially at 1% (for greater volatility) and increase (over a year) to 10% to reduce volatility, which is important for FNTB tokens, as means of payment in the FinTab system.
What it gives to users
- Token’s liquidity. Regardless of the volume of trading on the exchanges, there is always a possibility in the Bancor Network to exchange one smart-token for another, including a Bancor token.
- There is no additional commission in the Bancor Network, only the gas price (Gas).
- Additional financial security of the token. The backup token additionally supports the primary token (FNTB).