What is BakerySwap?
BakerySwap is where decentralized finance merges with NFTs in the Binance Smart Chain. There are several blockchains in the crypto world, including Ethereum, Polkadot, Tezos, Tron, etc. Among these blockchains, the Binance Smart Chain stands tall with its fast and cheap services. Transactions on BSC cost as little as a few cents. BakerySwap is one of the notable projects in the BSC ecosystem.
At its core, BakerySwap is an AMM or Automated Market Maker protocol that comes with swap and yielding features. Its NFT marketplace brings out defi-based NFT solutions. BakerySwap was the first-ever AMM on the Binance Smart Chain to offer altcoin liquidity pools with currencies such as LINK, DOT, etc. While BakerySwap enables arbitrage opportunities for BEP2 and BEP20 tokens, it also leverages its native BAKE tokens to reward liquidity providers. With BAKE tokens, its holders can earn a share of the protocol’s trading fees and participate in BakerySwap’s voting.
What Problem Does BakerySwap Solve?
The features of BakerySwap include trading and earning options, including exchange and liquidity pools. It also has an NFT marketplace and Bakery Gallery, a curated NFT platform for top emerging artists. It also has a crypto launchpad and combines gamification with DeFi. In terms of the major fixes it wants to attempt:
#1 BakerySwap comes as the next iteration of Uniswap. It serves as an iteration of Uniswap that is faster and cheaper. Moreover, the liquidity providers receive rewards in the form of BAKE tokens.
#2 To ensure that communities get to create new liquidity pools in a hassle-free way, BakerySwap has the provision for two types of liquidity pools: one with BAKE rewards and the other without BAKE rewards.
#3. BakerySwap is also one of the very first protocols to leverage Binance Smart Chain for an AMM DEX. It utilizes the benefits of the Binance Community to its fullest to provide arbitrage opportunities amongst BEP2 and BEP20 tokens, hosted on Binance.com or Binance DEX.
The Product Development Process at Bakery Swap
BakerySwap developed as one of the topmost decentralized exchanges on the BSC network. While most of the decentralized finance apps choose the Ethereum Network to build upon, BakerySwap selected Binance Smart Chain to avoid the high gas fees and frequent network congestion on Ethereum.
On BSC, BakerySwap launched as the first-ever NFT-Fi platform. NFT-Fi implies the use of Non-Fungible Tokens financially. It offers a traditional NFT market for artists in its community to list their artwork.
The team that works at developing the protocol is an anonymous group of developers utilizing a fully decentralized autonomous organization. Following the principles of a DAO, there were no pre-reserved tokens or pre-sale tokens for the team. They share farmed BAKE tokens in a ratio of 100:1. For every 100 BAKE tokens farmed, the developer receives one bake. Apart from these very low developer fees, BakerySwap has a 0.30% transaction fee for its liquidity pools. Of this 0.30%, 0.25% goes to the liquidity provider, while the remaining 0.05% goes to bake holders.
Bakery Swap Exchange:
As we have already discussed, BakerySwap is one of the first projects to build an AMM DEX on BSC. Following the AMM model feature, the BakerySwap exchange has no order book to match buyers and sellers. The trade happens against a liquidity pool. Supporters and users of the protocol provide the assets in each pool. In exchange for providing liquidity, users receive LP tokens in proportion to their share in the pool. The providers can convert these LP tokens back to the original tokens supplied.
BakerySwap Liquidity Pools:
If you stake BAKE tokens in the protocol, you can explore bakery-themed menus. Some of the supported BEP20 liquidity pools are Bread, Doughnut, Waffle, Rolls, Croissant, Latte, Toast, Cake, etc. If you go for the Bread option, you can stake BAKE to earn BAKE. Selecting the Doughnut option implies…