Thanks for taking the time writing this review! I work at Bancor.
Regarding frontrunning on Bancor
Trader frontrunning attacks on Bancor have largely been solved thanks to developments in the underlying Ethereum blockchain, and mitigated successfully thanks to changes implemented earlier this year in the Bancor Protocol which make trader frontrunning unprofitable or prevent it all together.
Your claim that on Bancor “it is pretty much a guarantee that someone will force the price to drop to your suggested cap levels” and create “price unpredictability” may have been closer to the truth when trader frontrunning was possible, but that is no longer the case.
Today, while it is true that MINER frontrunning is still possible on Bancor, we believe it represents only a small threat to the network, and it is false to say these attacks “squeeze out $5-$10 dollars out of you on your every trade”. Miner frontrunning is not popular for two main reasons:
It’s actually very hard to tell who is going to be the next miner on the Ethereum blockchain to process a transaction. So the chances of you being the next miner and also having a lucrative transaction on Bancor that you can front-run is quite slim.
It is relatively easy to uncover frontrunning of any kind by Ethereum miners. We believe most miners — who invest significant resources to earn revenue from block subsidies on Ethereum — understand that if everyone views Ethereum miners as cheaters it would hurt Ethereum and effectively bite the hand that feeds them. Miners have an interest in maintaining the integrity of the network and perpetuating manipulative behavior will ultimately harm this integrity.
If you have any evidence that suggests trader or miner front-running remains a significant problem on Bancor (beyond the June 2017 and Oct 2017 articles you link to in your original article, which were published well before the developments referenced above), we would be happy to see it.
In general, we believe the blockchain world can create Dapps where anyone who wishes to transfer value can do so without having to master gas strategies and without being subject to the abuses that run rampant on today’s crypto exchanges.
As we look to the future, there is much more work to be done to build constraints into Dapps and exchanges that prevent manipulative behavior, while imposing the least collective costs on the community as possible. Bancor remains committed to continually enhancing our smart contracts to enable on-chain conversions that are secure, predictable and low-cost.
Regarding Bancor focus
Bancor’s liquidity network is designed to function cross chain. While we are contributing signficant resources to building infrastructure on EOS and overseeing LiquidEOS as an elected EOS Block Producer, Bancor is as focused as ever on building its decentralized liquidity network in ETH and across any blockchain where Dapp developers are building.