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Bancor (BNT) is a smart contract-based liquidity protocol that aims to provide a seamless conversion experience between different tokens on the Bancor Network platform. It was introduced in 2017 by Eyal Hertzog, Galia Benartzi, and Guy Benartzi and raised around $144 million during its ICO launch.

The Bancor Network offers a collection of smart contracts that control the conversion flow between different tokens on the network. These smart contracts also control access to the network's liquidity pools, which connect different tokens. Users can use the Bancor Network smart contract's convert functionalities to initiate a conversion between any tokens on the network, including tokens on other blockchains.

At the center of the Bancor Network is the Bancor Network Token (BNT), which serves as a hub that connects all of the other tokens. USDB (USD Bancor) is a stable form of BNT that may be used as a substitute reserve currency for Bancor Network. Additionally, USDB is a token backed by BNT and used in Bancor Network relays.

Every liquidity pool on the Bancor Network collects liquidity for a specific set of tokens. Anyone can contribute liquidity to a pool in exchange for conversion fees on trades that pass through it. Pool tokens are then distributed to the contributors in proportion to their assets in the pool. A ConverterBase contract manages each liquidity pool, and the liquidity providers can construct new instances of the ConverterBase contract to generate new liquidity pools. To add or remove liquidity from a pool, anyone can use the fund or liquidate functions.

Bancor's newer version, Bancor v2.1, offers additional features to liquidity providers such as single-sided exposure and impermanent loss protection. These improvements have been incorporated with the aim to produce higher and more reliable yields from trading fees and liquidity mining rewards.

Bancor Network Tokens (BNT) can be created via staking. In order to stake tokens on the Bancor Network, the user needs to buy relay tokens and hold them in their wallet. The Bancor ecosystem works on a two-way token model, which includes liquid tokens and relay tokens. In staking, relay tokens are used to provide liquidity. Also, the fraction of the staked money to the pool's total value is indicated by relay tokens. Relays allow all Bancor tokens to be easily converted into other tokens in a single transaction. Users can sell the relay tokens at any moment.

Currently, the Bancor Network is based on the Ethereum blockchain, but the protocol is interoperable with other blockchains as well. This ability to check and obtain information across many blockchain systems is known as blockchain interoperability.

In conclusion, Bancor (BNT) is a smart contract-based liquidity protocol that aims to provide seamless conversion between different tokens on the Bancor Network platform. It offers a collection of smart contracts that control the conversion flow between different tokens on the network, and also control access to the network's liquidity pools, which connect different tokens. Bancor Network Tokens (BNT) can be created via staking, and the Bancor ecosystem works on a two-way token model that includes liquid tokens and relay tokens.