BakerySwap is a decentralized finance (DeFi) protocol that allows users to trade without an order book. This protocol runs on Binance Smart Chain (BSC) and provides Binance with powerful functionality. With BEP2 and BEP20 tokens, BakerySwap supports Ethereum’s ERC-20 token standard, solving two major issues on the Ethereum blockchain: high transaction fees and transaction confirmation delays.
The Origin and Function of BakerySwap
What is BakerySwap? BakerySwap is a decentralized cryptocurrency exchange created by an anonymous development team. It leverages automated market maker (AMM) services, initial DEX offerings, non-fungible tokens (NFTs), and most recently, gamification of functionality. This protocol is the first on Binance Smart Chain to use both AMM and NFT services.
The purpose of BakerySwap is to ensure a fair distribution of token circulation, with a ratio of 100:1, that is, for every 1,000 BAKE tokens obtained by users, developers will receive 10. The native token BAKE was created in September 2020 to increase interoperability within the exchange. The protocol clones most of Ethereum’s decentralized applications (dApps) while offering faster transaction times and cheaper gas fees.
How BakerySwap works
Since BakerySwap uses an AMM exchange model, it eliminates the use of a centralized “order book” and replaces it with a decentralized liquidity pool. The exchange makes it easier for users to profit financially by providing liquidity to any desired pool. In return, they will be rewarded with some liquidity pool tokens that can be put back into the pool, and receive incentives with some NFT tokens.
BakerySwap Gas Fees: The BakerySwap protocol provides users with very cheap network transaction fees. Users are charged a fee of 0.30% per liquidity provider, with 0.25% going to the liquidity provider and 0.05% used to purchase BAKE tokens from the market and redistributed to token holders.
Key Features of BakerySwap
Crypto Yield Farming: Liquidity pools in the BakerySwap platform allow users to provide liquidity to any random liquidity pool. When doing so, they will be rewarded with Bakery Liquidity Pools tokens (BLP tokens). Different pools have different reward utility, with rewards being paid based on a percentage of investment liquidity or proportion in a given pool.
Non-fungible token trading market: Non-fungible tokens (NFTs) are cryptographic tokens stored on the blockchain that uniquely identify any given digital asset. It can include any digital asset, including media such as pictures, songs, and videos. In BakerySwap, artists have a local marketplace to convert their artwork into NFTs and sell them for profit.
Gamification: BakerySwap allows users to play games and earn NFTs. There are over 4 games in the game collection including Poker Blind Box, Football, Combo Meal and BSC Game Box.
launchpad
The BakerySwap protocol has a Launchpad that displays a list of more projects in preparation. These projects include integrating BEP20 and ERC20 tokens into the platform. Launchpad tokens can be obtained in two ways: purchased using BAKE tokens or using the BUSD stablecoin.
Uniqueness of BakerySwap Token: BakerySwap Token has some unique features that set it apart from other DeFi projects:
Built on Binance Smart Chain: The BAKE-BNB pool with this feature should offer 10x more rewards than other pools.
BAKE rewards for a given pool: Each “reward multiplier” is different for different pools, depending on the amount they offer to BAKE holders.
Transaction and Swap Fees: BakerySwap charges a 0.3% fee on all transactions and swaps, with liquidity providers sharing 0.25% of this fee.
AMM project: The BakerySwap project is an AMM project based on BSC that provides LP (liquidity pool) for altcoins such as DOT.
BakerySwap Products
The BakerySwap exchange AMM does not use an order book, it cannot match sellers and buyers, and transactions are within a liquidity pool. The assets included in each pool are provided by users and supporters. These products include the following:
NFT Marketplace: BakerySwap is one of the major NFT marketplaces on BSC, and minting NFTs on the platform requires 0.01 BNB.
BakerySwap liquidity pool: such as cakes, donuts, waffles and bread.
Bakery Gallery: This is a handpicked NFT platform for top artists.
Gamification: Includes Poker Blind Box, Football, Combo Meal and BSC Game Box.
Launchpad: This is the platform where IDOs are hosted within BakerySwap.
BakerySwap (BAKE) Token
BakerySwap has a native token called BAKE, discovered in September 2020. It is the only token attached to the platform and serves as the governance token. BAKE is a BEP-20 token that enables holders to participate in the BakerySwap platform’s voting process. Users earn BAKE by staking liquidity pool tokens and are eligible for dividends.
In summary: BakerySwap, as a decentralized exchange, provides users with a wealth of trading and investment opportunities through its unique features and low transaction fees. Whether it’s crypto yield farming, NFT marketplaces, or gamification features, BakerySwap has its place in the DeFi space.