The difference between Relay Token and Smart Token in Bancor protocol
Bancor Protocol is a liquidity provider for the crypto-currency community in its first step this protocol will focus in ERC20 token of the Ethereum network.
The mechanism of Bancor consists in using BNT (Bancor Network Token) as a connector for token to ensure the liquidity that’s mean that at any time any token in the network can be converted to BNT, ETH or any other token on the network without the need of a middleman or a seller just with the use of the Bancor Protocol.
You can read more about this in the Bancor Whitepaper from here.
Bancor can provide liquidity with two different types:
Smart Token (Dynamic supply)
A Smart Token, like BNT has an adaptive supply. The price and supply of the Smart token increases when it is acquired and decreases as the Smart Token is sold, by means of the smart contract.
We can apply this for all Smart Tokens with a bancor connector just with changing ETH with BNT and BNT with the smart token and the token CW (Connector Weight) in the example above 10%.
You can try the first Smart Token under the bancor Network STX from here.
Relay Token(Fixed supply)
*This is only an example, it’s not the official GNOBNT Relay Token
Relay Token holds BNT (Bancor Network Token) and ERC20 Token (or others cryptocurrency) using this anybody can buy or offer The Token (or The cryptocurrency) for BNT and some other token in the Bancor Network like ETH which algorithmically calculated by the bancor smart contract.
You can try the first Relay Token under the bancor Network GNO from here.
Examples from here.