Awesome piece, and super helpful for our team! As Tash noted, users can in fact access Bancor WITHOUT an account connected to SMS or a centralized server. Bancor integrates with Web3 and third-party supported wallets, such as MetaMask, Trezor, Toshi, Cipher or Trust Wallet. Here you can see a 2-min video showing Bancor onboarding with MetaMask: https://www.youtube.com/watch?v=VVX9BhFFvtI&list=PLjPjn_eeEzWtH4fMYTy82-YeH108Vsm1R
However, within Status, users cannot currently use Bancor without Bancor’s hosted wallet. This is because Status does not currently support batch transaction processing. Bancor relies on batch transaction processing as it allows users to sign transactions only once when performing token conversions. We believe this is a better user experience than requiring users to sign transactions twice, as several DEXs require users to do.
In general, we fully agree with you that Dapps should always give users the option to access the app using any wallet. Currently outside of the Status client, in Cipher’s Dapp browser or any Web3-enabled browser for instance, Bancor does not require use of its hosted wallet. We are actively working with Status and other Ethereum clients to support batch transaction processing — which we currently believe provides the best overall UX for token conversions in such platforms.