After considerable thought and discussions with other people, I affirm that there is no error in Rosenfeld's Bancor paper as Dan Larimer suggests.
Therefore, there seems to be no theoretical explanation (so far) for the individual formulas implemented in convert_to_exchange and convert_from_exchange at exchange_state.cpp (EOSIO Dawn 4.0).
True. no need to go through the relay if you don't sell or buy the relay token (RAMEOS) directly.
The formula can be changed to:
amount_from / (balance_from + amount_from) * balance_to
see this patch: https://github.com/bancorprotocol/eos/commit/de4cae5ebc2a0ee5b40f81241bf5842519cd0e9c
(it also includes a fix for buyrambytes inaccuracies - see ...
There was no need for any initial eos token balance for the bancor algorithm to work properly.
The bancor algorithm calculates the price based on initial parameters set in the code and the current balance of both sides of the deal. In this case, the amount of RAM and amount of EOS in its bags and the amount in the buy or sell order requested.
In the early ...