BNB

Project Insight: BurgerSwap

by BSC News

January 29, 2021

chain

BurgerSwap is the first decentralized Automated Market Maker to appear on the Binance Smart Chain and provides DeFi top services.

About BurgerSwap

BurgerSwap is a democratized, decentralized Automated Market Maker (AMM) on Binance Smart Chain (BSC). BurgerSwap was created to serve its community, and its growth is self-dependent on the community. 

Holders can easily change the structure of the BurgerSwap protocol through staking the community governance token, BURGER, allowing users to vote and initiate proposals. BurgerSwap happens to be the first AMM application on the BSC network, launched in September 2020. The protocol completed an update to V2 in December 2021 that integrated several new features. 

The platform aims to address issues faced by most Ethereum-based exchanges with gas fees, slippage, and slow transaction speeds. In essence, it does not stray far from the structure of comparative projects from the same space as PancakeSwap. Users are ultimately incentivized for providing liquidity to the exchange. 

The entire project is self-funded. Everyone involved in this project's development received no salary.  Also, the developers announced that they had no intention of conducting any ICOs for the project. The team of developers gets a compensation fee that is 10% of all transaction fees.


What is an AMM?

Automated Market Makers are a type of decentralized exchange (DEX) protocol that uses a mathematical formula and game theory to price assets. This is unlike traditional exchange methods that use an order book system to pair buyers and sellers. For those who wish to learn more about AMM’s, check out the following article: Cryptonomics: Automated Market Makers.

BurgerSwap's automated market maker (AMM) now uses an aggregator model that supports several key Binance Smart Chain DEXes, like PancakeSwap, MDEX, Biswap, Apeswap, BakerySwap, Babyswap, WOOFi Swap, and JulSwap. The BurgerSwap facilitates and validates all transactions through all the DEXes that offer the best transactios rates. 

Additionally, users who trade assets like BNB/WBNB, BUSD, USDT, DAI, ETH, BTCB, CAKE, BURGER are rewarded with as high as 50% of trading fees in $BURGER. This gives users the best rewards with the best transactions rate opportunities.

BurgerSwap Bridge

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BurgerSwap has enjoyed popularity due to its ability to swap coins from the Ethereum Network (ERC-20 Standard) to the BSC (BEP-20 Standard) and vice-versa, with significantly lower fees. This feature has enabled Ethereum users to seamlessly migrate to the BSC, where they get to make the most of low transaction fees and quick block speeds. 

Liquidity Incentives

All tokens available on the BurgerSwap will have a BNB and a BURGER pair. The BURGER pair is used to generate liquidity for the BURGER token, and BNB is the native token for the BSC, making it commonly used. Since BurgerSwap is built on the BSC, it is a no-brainer to include this liquidity for BNB, as all AMM's do. 

To further incentivize BURGER liquidity, the protocol requires the burger pair to account for  1% of the asset's liquidity to be eligible for mining rewards. Overall this system acts similarly to most liquidity mining structures used to bootstrap initial liquidity and users.

Governance

BurgerSwap was created to be a democratized decentralized exchange, which implies that governance is not optional but compulsory. The developers of BurgerSwap had touted community as the best means of adopting a democratic model in the DeFi space, and they have stayed true to this. Traditional models relied on coders to change contracts, but BurgerSwap makes decisions through communal votes. 

Token holders can vote to alter exchange parameters like trading fees, mining speed, staking rewards, and more. Participation is pushed through a clause that requires users to participate in governance voting to receive a specific allocation of voting incentives. 

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Switch Protocol Impact

Switch Protocol is described as a true cross-chain asset swap protocol designed to solve the issues hindering the proper circulation of assets among public chains. 

The V2 of BurgerSwap has a new menu for a Switch Protocol that enables users to swap crypto assets from one blockchain to another. Swaps are available between Ethereum, BSC, HECO, and Polygon networks.

Switch enables ‘LossLess’ asset movement and liquidity redistribution cross-chain with ZERO slippage. The current beta version supports major stable coins, including USDT, USDC, and DAI, between Ethereum, BSC, Heco, Polygon, and Arbitrum chains. 

Users are incentivized to provide liquidity for these supported assets as they are then able to earn transaction fees. BurgerSwap uses the term ‘true’ to underline that they allow the swap of original tokens instead of wrapped tokens.

Switch Protocol is committed to expansion and intends to support other mainstream assets like BTC and ETH while expanding new public chains and Layer 2, such as Solana, Polkadot, Avalanche, Terra, and Optimistic Rollup, ZK Rollup, among others. We will be following closely to see how far they get with this. 


Burger Metrics

BurgerSwap has a market cap going from just over $53 million, according to CoinMarketCap in December 2021. The price of $BURGER still sits around $3.20. The current price is a far cry from the all-time high of $28 back in May 2021. 

CoinMarketCap also lists the current total market supply over 17,48,000, which is just under 4,000,000 off the 21,000,000 max supply.

From introducing incentivized farming to celebrating its anniversary with a Decentralized Finance (DeFi) harvest festival, BurgerSwap has kept active and made solid ground since becoming the first DEX on Binance Smart Chain. Partnerships and developments have abounded as the months have gone on. 

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Initiatives like forming the Fast Food Alliance have opened doors to several strategic partnerships with esteemed projects like Fry.World, and set the tone for BurgerSwap’s appetite to expand and work with others. 

The partnerships have been broad and ambitious, taking in projects from a range of backgrounds. Liquidity, project awareness, and a general understanding of BurgerSwap’s capabilities have been on display.

For More Information about BurgerSwap, see the following links:

Website - Twitter - Medium - Telegram - GitHub

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