About ETHBNT Relay
ETHBNT is a Bancor pool token representing shares in the ETH:BNT liquidity pool. ETHBNT collects fees from ETH-based conversions on Bancor.
The ETH:BNT liquidity pool is no different than other liquidity pools on the Bancor Network, such as DAI:BNT or BAT:BNT, which process conversions and collect fees from DAI-based and BAT-based conversions on the network.
The ETH:BNT pool will be configured with a liquidity provider fee of 0.1% -- meaning an ETH <> BNT conversion will generate a 0.2% fee for liquidity providers, since it requires two hops, ETH <> ETHBNT <> BNT. The liquidity provider fee is distributed to ETHBNT token holders in proportion to their holdings.
The initial supply of ETHBNT pool tokens will be equal to 20% of the total BNT supply at the time of BNT holder snapshot. Like every pool token in the Bancor Protocol, ETHBNT pool tokens will have a dynamic supply: When a user adds liquidity to the ETHBNT pool, new ETHBNT pool tokens are minted; when a user withdraws liquidity from the ETHBNT pool, ETHBNT pool tokens are destroyed.
