BakerySwap is a DeFi protocol that allows transactions to occur without the need for an order book. It is a decentralized crypto exchange (DEX) that makes use of the Automatic Market Maker (AMM).
It operates on the Binance Smart Chain, making it of great functionality to Binance. The Exchange facilitates transactions through the BEP2 and BEP20 tokens. These tokens support Ethereum’s ERC-20 token standards.
The Binance Smart Chain provides a solution to two major problems that have arisen with Ethereum’s blockchain. The first problem is that of very high transaction charges upon activities reaching an all-time high fee of $15.9.
The second is the delay in the confirmation of transactions carried out in the blockchain. All these issues discouraged users from transacting on the blockchain. However, in BSC, it isn’t so.
If you are ready to know all about this unique token, its merits and challenges, its functionalities, and all, then read on!
The BakerySwap protocol is a decentralized crypto exchange, similar to Exodus, Coinbase, Coinmama, and its major competition, Binance exchange. It utilizes Automated Market Maker (AMM) services, Initial DEX offerings, Non-fungible tokens (NFT), and a very recent feature, Gamification.
The protocol is the first protocol on the Binance Smart Chain to utilize both AMM and NFT services.
BakerySwap was created by an anonymous team of developers. Their intention for creating the protocol was to ensure a fair distribution of the token circulation.
Hence, the ratio of 100:1, which is to say, for every 1000 BAKE tokens the users get, the developers get 10. The native token BAKE was created in the month of October 2020 to improve interoperability within the exchange.
The protocol clones majority of Ethereum’s decentralized Apps (dApps) while providing them with much faster transaction time and cheaper gas fees. The Basic Smart Chain makes this possible since it is compatible with the Ethereum Virtual Machine (EVM) and is equipped with the Proof-of-Staked-Authority (PoSA).
As BakerySwap utilizes the AMM model of swapping, it eliminates the use of centralized “order-books” and replaces them with decentralized liquidity pools.
An exchange like BakerSwap makes it easier for users to profit financially by providing liquidity into any desired pool. In return, they will be rewarded some Liquidity Pool tokens, which they can stake back into the pool and will be incentivized with some NFT tokens.
Since the exchange has tokens that are in the form of real-world baked foods, users can mint any desired “combo meal,” which they can use to earn more BAKE tokens.
The BakerySwap protocol provides users with very cheap transaction charges on the network. Users are being charged with 0.30% fees per— 0.25% sent to the providers of liquidity, while 0.05% is used to purchase the BAKE token from the market and redistributed to the token holders.
The BakerySwap protocol provides users the following accessibilities:
The liquidity pools in the BakerySwap platform allow users the ability to provide liquidity for any random liquidity pool. On doing that, they are rewarded with Bakery Liquidity Pools tokens (BLP tokens).
The various pools have different rewarding utilities. One can get paid based on his/her percentage of invested liquidity or from their proportion in the given pool.
Trading fees are gotten when any crypto pair is traded in the exchange
Non-fungible tokens are cryptographic tokens stored in a blockchain that identifies any given digitalized asset to be unique. It can include any digital asset, including media like pictures, songs, and videos.
These assets can be downloaded by anyone in copies, with the original copy being traced back to the buyer of the NFT. Unlike cryptocurrencies, NFTs cannot be swapped interchangeably but are encoded with a unique set of characters, hashes, and metadata.
In BakerySwap, there is a native market for Artists to transform their art pieces into NFTs and make a profit by selling them. This process is done through minting, and others can purchase these artworks using the BAKE tokens.
BakerySwap allows users to play games and earn NFTs.
There are over 4 games in the gaming collection, and they include:
This crypto platform more than evolves into being a successful exchange; it also has more under its sleeves.
The BakerySwap protocol has a Launchpad that displays the list of more projects in preparation. These projects include the integration of both BEP20 and ERC20 tokens into the platform.
The Launchpad tokens can be obtained in two ways: either through purchasing with the BAKE token or using the BUSD stablecoins.
There are unique features that differentiate the BakerySwap token from other Defi projects. These unique features include;
The BakerySwap exchange an AMM does not use an order book. It cannot match sellers and buyers. The trading is within an (LP) liquidity pool. The assets contained in each pool are provided by users and supporters. The projects comprise of the following products;
BakerySwap has a native token known as BAKE found in Sept. 2020. It is a unique token attached to the platform that serves as the governance token.
BAKE is a BEP-20 token that enables holders to participate during the voting process in the BakerySwap platform. Users of the BakerySwap Platform earn BAKE by staking liquidity pool tokens and qualify for dividends.
The BakerySwap team takes 1 BAKE token per 100 BAKE tokens farmed in the platform. This is why the platform pays some of the highest yields seen in DEX or AMM to its liquidity providers. The BAKE tokens are not pre-sold or pre-mined. The team is focused on distributing all BAKE tokens in a fair and equal manner.
BAKE token would have been released fully within 11months, but some adjustments were made in March 2021 based on feedback from the community. This lowered significantly, the quantity of BAKE rewards being issued out to 250,000 for the next 9 months.
Afterward, the pool ‘reward multipliers’ will be adjusted to reduce rewards to half of their original value at 9 months. This helps to reserve pools that will be used later for farming after BAKE emission ceased in the ‘initial contract.’ This whole process is aimed at maintaining a maximum of 270M token supply in circulation after 24years of emission.
The price of the BAKE token traded between $0.01 & $0.02 throughout 2020. It started witnessing an increase in 2012 alongside the ‘broader’ market. The February rally raised the value to USD 2.69 before the pullback that wiped out half of the acquired gains.
They had another rally in April, raising the price to a high value of USD 8.48 as recorded on 2nd May 2021. The BAKE token gave back almost 50% of its gain and resumed trade at USD 4.82 on 13th May due to another pullback.
However, Bake tokens can be bought from various crypto exchanges like CoinBene, JulSwap, Gate.io, PancakeSwap, Binance, CoinTiger, Hoo, and open ocean. As of 19th May 2021, Bake token price is USD 5.49 with 305,221,180 dollars as its daily trading volume.
The quantity of coins in circulation (circulation su[pply) is 188,717,930 with a maximum token supply of 277,237,400 Bake. The most recommended exchange for buying and selling Bake is the Binance exchange.
BakerySwap has unique features that address the frequent inflation challenge faced by AMMs emanating from motivating liquidity providers. The developers are managing this inflation, increasing the demand for Bakery tokens by decreasing the Token supply.
BakerySwap developers believe in the future of the (DAO) decentralized autonomous organizations. The DAO as a general body has the following goal towards the development of BAkerySwap.
Notably, the BakerySwap development team has discovered the problems facing the project and has already laid down plans to either address or remove them entirely.
The BakerySwap rewards are earned in various liquidity pools like BUSD, Chainlink, ETH, DOT, BTC, and ‘BAKE’ vs. ‘BNB.’ There are 3 primary means of earning profit with BakerySwap tokens. The level of risk one is willing to take, and the capital available for investment affects the choice of means.
Note; the process of earning through staking of Bake tokens is currently enabled by SOCCER, POKER, or CAR. Bake tokens can be staked to get other tokens as TSA, TKO, SACT, and NFTs. The latter can be exchanged (sold) in NFT marketplaces such as Rarible and OperaSea or even in the BakerySwap marketplace.
The supported liquidity pools for BEP20 in November 2020 are;
The BakerySwap presents a 0.3 percent fee to every trade on the platform. 0.25% goes to the Liquidity providers (LPs), and the rest (0.05%) is converted to BakeSwap tokens.
These tokens are then given as rewards to Bake token holders. The potential return on investment (ROI) for the different Pools vary.
This section will assist beginners who wish to use the BakerySwap platform for any purpose. The steps are outlined below.
Note, there will always be a redirection to the connected wallet (e.g., MetaMask) for confirmation of transactions.
BakerySwap provides relevant services in the DeFi ecosystem, which is ‘hot’ presently. With this, one can say that there is a brighter future for the exchange. It is built on the ‘smart chain’ of the popular Binance exchange. This is an advantage as it will have a minimal challenge in gaining public trust.
This smart chain adoption gives it an edge over other projects from unknown founders. The BakerySwap platform rewards are not limited to only BAKE tokens. This is another good feature.
In addition, the BAKE token has not recorded a zero-level value. This shows that the token is relatively doing well in the market. It is a sign of hope.
The Bakery platform is compatible with NFT trading. This will aid in generating revenue and sustaining the platform. However, intending investors should do thorough research (DYOR) before investing.
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