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BurgerSwap is a DeFi protocol for Binance Smart Chain (BSC) that allows you to swap tokens and earn rewards for providing liquidity to decentralized markets.
Unlike other similar DeFi projects such as Uniswap and SushiSwap, BurgerSwap does not have regular liquidity provider tokens. Instead, users who provide liquidity to available pairs receive BURGER tokens that represent their share of the pool.
What is BurgerSwap
BurgerSwap is a DeFi protocol running on the Binance Smart Chain (BSC). BurgerSwap operates as a decentralized exchange (DEX) using an automated market maker (AMM) model. It allows users to earn tokens by providing liquidity, in the same way as PancakeSwap, BakerySwap and other protocols.
How to connect MetaMask to BurgerSwap
Before connecting MetaMask to BurgerSwap, you need to connect your wallet to Binance Smart Chain. If you don't know how to do this, check out the guide on Connecting MetaMask to Binance Smart Chain.
Next, go to the BurgerSwap home page (https://burgerswap.org). Click Connect Wallet to connect your wallet. Make sure you have migrated from Ethereum mainnet to Binance Smart Chain.
Connecting a wallet provides access to BurgerSwap functions (swap, pool, management, Bridge, and so on).
How to use BurgerSwap
Various BEP-20 tokens (crypto-assets launched on BSC) can be traded on BurgerSwap. Here you can see a list of available pairs.
For example, to exchange BNB for BURGER, you need to go to the Swap section, enter the amount of BNB to exchange and click the Swap button.
Be sure to check the price impact, transaction fees and other details before exchanging tokens.
How to add liquidity to the BurgerSwap pool
Any user can provide liquidity (add tokens) to the BurgerSwap platform. They can be used to create a new liquidity pool or added to an existing one.
To provide liquidity, go to the Pool tab, click Add Liquidity and select a token pair. Please note that you must click the Approve button to confirm adding liquidity to the pool and completing a transaction on the blockchain to use the tokens in BurgerSwap contracts. After completing the operation, you can continue adding liquidity.
By adding liquidity, users receive BURGER tokens in proportion to their share in the pool. Check out BurgerSwap guides for details.
Manage BurgerSwap
In the BurgerSwap Governance tab, you can add BURGER tokens to staking. This is necessary to create new management proposals or vote on existing ones.
Cross-chain bridge BurgerSwap
Since BurgerSwap runs on BSC, trading or providing liquidity can only be done using BEP-20 tokens. However, BurgerSwap has a cross-chain bridge to convert any ERC-20 token into a wrapped version of BEP-20 (bToken). This is similar to creating tokenized Bitcoins on Ethereum, but the conversions are between ERC-20 and BEP-20 tokens.
There are many assets on the Burgerswap exchange that are not native BSC tokens, such as BTC, ETH, BCH or XRP. They can only be traded on the BSC network as they have been converted into BEP-20 tokens via Bridge (bTokens) or withdrawal from Binance.
Please be aware that the process may require the MetaMask network to switch between the Ethereum and BSC blockchains. Additionally, bToken can only be used for trading if there is sufficient liquidity in the corresponding BNB and BURGER pairs (bToken/BNB and bToken/BURGER). Therefore, it is important to check the price impact before confirming the transaction. Trading pairs with low liquidity are likely to experience high trade slippage.
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Farming profitability BURGER
BurgerSwap offers rewards in the form of BURGER, USDT and BNB. Users can farm tokens in two ways: by providing liquidity and by participating in governance.
Anyone who provides liquidity to BurgerSwap receives BURGER tokens in proportion to their stake in the pool. As long as users continue to provide liquidity, they are eligible to receive rewards.
As of November 2020, BurgerSwap charges 0.3% trading fee on all pairs, with a portion of this being shared among liquidity providers. They also receive a share of the BURGER generated in each new block.
Alternatively, users can earn rewards by participating in project management through a voting system.
Additionally, BurgerSwap has a burn mechanism that wipes out BURGER's percentage of fees.
Rewards are distributed as follows:
40% of rewards are distributed among liquidity providers on the platform.
30% of rewards are distributed among users for participating in management/voting.
30% of rewards are burned forever.
Rates may change as new users submit new suggestions and votes.
BurgerSwap Security
Blockchain security company Beosin audited the first version of the smart contract in September 2020. As of November 2020, there have been no reports of problems with BurgerSwap.
However, investing in a smart contract is always risky due to the possibility of errors that were not noticed during a code audit. Therefore, never deposit more funds than you are willing to lose.
Summary
BurgerSwap was one of the first DeFi projects to launch on Binance Smart Chain. Despite the similarities with other platforms, BurgerSwap offers unique features such as cross-chain bridge and governance system.