Continuous Liquidity and Asynchronous Price
Discovery for Tokens through their Smart Contracts;
aka “Smart Tokens”
Abstract: The Bancor protocol enables built-in price discovery and a liquidity mechanism for
1) Tokens on smart contract blockchains. These “smart tokens” hold one or more other tokens inreserve, and enable any party to instantly purchase or liquidate the smart token in exchange forone of its reserve tokens, directly through the smart token’s contract, at a continuouslycalculated price, according to a formula which balances buy and sell volumes.The Bancor protocol is named in honor of the Keynesian proposal to introduce a supranational
2) Reserve currency called Bancor to systematize international currency conversion after WWII.