The success of the Bancor Protocol depends on users staking tokens in Bancor liquidity pools and generating fees from trade volume.

Liquidity pools perform autonomous, peer-to-contract token trades and generate fees from each trade. Anyone can provide liquidity to a pool and, in return, receive conversion fees from trades that pass through the pool.

Providing liquidity to a Bancor pool is permissionless (no central party can block or control the process) and easy for everyday users (add liquidity in a couple clicks). Liquidity providers receive pool tokens proportional to their share of assets in the pool.