- Overview of EOS Exchanges – trading EOS airdrop tokens on the EOS network (updated!)
- Overview of EOS Exchanges – trading EOS airdrop tokens on the EOS network (Part 2)
- NewDex, not a DEX? Trade issues, token issues and massive transfer times
- Overview of EOS Exchanges, updates and new arrivals
- EOS Exchanges, Update on SouthEX, FINDEX and BTEX
- EOS Exchanges – EOSDAQ, the newcomer
- EOS Exchanges – Findex Update and first Test of Desktop version
- EOS Exchanges – New Arrival WhaleEX
- EOS Exchanges – Bancor the Liquidity “Token-Swap-Station”
Within my series of exchange analysis and reviews, there has rarely been an exchange that was hyped as much as Bancor for EOS. Of course, Bancor has been well known for their protocol/algorithm which is widely used for automated price calculations. The most prominent within EOS world might be RAM trading.
The most stunning development of Bancor has been one of the first cross chain transaction between Ethereum and EOS. This opens the door for the listed tokens into Ethereum world, which is a great achievement.
Reasons enough to take a closer look at this new option for trading your beloved EOS tokens.
While this is not especially user-friendly for now, it allows you to stay away from Binance to exchange your ETH to our favorite EOS. It is still required to use the Bancor BNT token as a catalysator, but it is a big step to switch your ETH to Meet.One or Dice in a view steps. Next to Scatter, you will also need MetaMask to do so. It is also a little tricky since you will have to use up to THREE Bancor websites to perform the entire task.
There is definitely room for improvement here. For now, I would like to cover the last part which is transforming any listed EOS blockchain token to EOS and back.
The EOS Bancor Network
In fact, Bancor is not a typical exchange as you would expect. It is defined as a liquidity network that aims to assure the availability of listed tokens to the markets. From this perspective, the available volume is not directly related to traders only. A large proportion of the tokens are provided by the projects themselves.
What makes Bancor so different, is that no bids and asks are available. In general, there will only be one price offered for buy and sell, you either take it or leave it.
Here are the key facts you are used to:
Exchange Type: Centralized Exchange / Liquidity network
Login: Scatter (EOS), Metamask (ETH)
Min. Order: No
The website is designed is very simple and focused on key functionality. As opposed to most other exchanges, no charts are displayed for the exchange pairs, no arrows to decrease or increase volumes, this is also a consequence of the different nature of Bancor.
Trading on Bancor
To trade, select the pairing you would like to use. Once you hit the “Buy/Sell” button, a new window will open.
The simple Buy or Sell window is easy to understand, you will quickly find your way here.
I do recommend though, to always us the advanced settings as the spread between displayed price and received price can sometimes be significant.
There are two key figures you have to care for.
The concept is explained by Bancor as following:
Always check this value! If the slippage is too high, walk away and come back later! I have seen instances where there were slippage values of 20% sometimes even 90%, especially when buying tokens more often in a short time-frame.
This is your security net! You will have to experiment a little to find out at which price change the orders are usually still executed. Please enter a value in here that you are willing to pay as the maximum price.
There is an additional advantage of using the advanced settings and price change: You will be able to see the price with all decimals. The standard view will round to four decimals! You can only compare prices in advanced mode exactly, which is beneficial when you compare with exchanges for arbitrage trades.
When selling tokens, please be sure to keep the “-” for the price change, otherwise, the result might be a bad surprise.
Once you balanced you trade you will be brought to transaction confirmation, which will open the known Scatter approval window, too. Scatter is indeed the quasi standard for many desktop applications, same here.
In case the defined price change does not match the current market condition, the transaction will be aborted. This is only a sign that the order could not be matched to your minimum/maximum price.
In this case, return to the trade window and adjust the price change until the order can be completed.
I personally found that a number close to the displayed slippage percentage will mostly execute. I also investigated though, that in some cases a lower percentage will still execute.
Bancor offers a nice and easy way to buy and sell tokens at a nearly fixed price. The function to offer liquidity for tokens can surely be reached, as required quantities are supported by the projects themselves.
While Cross-Chain transactions will be a killer application, the usability has yet to be improved significantly to allow mass adoption. I would clearly also recommend combining the websites to perform all jobs on one.
While doing my research, I also found a website called “EOS Bancor” which can be found on eosbancor.top this is NOT in any way related to the real Bancor. Be extremely cautious using that site since it is not SSL encrypted and the price calculations are showing a massive spread. It is virtually unpredictable how much you pay for your transactions.
There is also a warning within the Bancor Telegram group.
Please also visit my new “EOS-Exchange-News” channel on Telegram https://t.me/EOS_Exchange_News for regular updates.