In this white paper, we have proposed the Bancor Protocol for decentralized liquidity networks, based on a standard for a new class of tokens called Smart Tokens, which provide continuous liquidity by incorporating an autonomous and low-cost market making functionality directly into their smart contracts. Smart Tokens utilize connected token balances and an intelligent and open-source formula to perpetually offer to buy or sell themselves at calculated and predictable prices, in return for any other token to which they are connected【4】.