Author: Andrey Sergeenkov
Summary
BakerySwap is a DeFi protocol built on Binance Smart Chain that provides users with “delicious” rewards. It is a decentralized exchange (DEX) using the Automated Market Maker (AMM) model.
Read this guide to stake and “bake” on BakerySwap, create unique NFT combinations, get exclusive NFT pets, and explore more highlights!
Introduction
I believe you have discovered many food-themed projects in the DeFi field. Such protocols all share a similar feature: users provide liquidity and earn tokens in return.
While most people may associate DeFi with the Ethereum blockchain, Binance Smart Chain (BSC) has cheaper fees and faster confirmation times, and more and more projects are preparing to launch on it.
In this article, we will introduce BakerySwap – a decentralized trading platform based on Binance Smart Chain.
What is BakerySwap?
BakerySwap is a decentralized trading platform that uses the automated market maker (AMM) model that most people know through Uniswap.
BakerySwap trading platform
BakerySwap is one of the first projects to use BSC to build an AMM decentralized trading platform, and it is also one of the few DeFi projects to provide altcoin liquidity pools in Binance Smart Chain.
Similar to other platforms using the AMM model, BakerySwap does not use an order book to match buyers and sellers, but instead allows users to trade with liquidity pools. All assets in the fund pool come from BakerySwap supporters and users.
Users receive corresponding liquidity provider (LP) tokens based on their share of the liquidity pool. They can then exchange these LP tokens back for the original tokens provided. The amount received also depends on their share of the pool. In return for providing liquidity to the pool, users earn trading fees.
BAKE’s Liquidity Mining
As you may have guessed, the native token of the BakerySwap platform is called BAKE. So, how to obtain BAKE? If you want to participate in BAKE's liquidity mining, you can pledge BAKE or provide liquidity to any liquidity pool, and then pledge liquidity pool tokens (BLP).
For example, if you provide liquidity to the DOT-BNB pool, you will receive DOT-BNB BLP tokens. You can then stake these BLP tokens and participate in BAKE liquidity mining. You can also purchase BAKE directly on the open market without participating in liquidity mining. Let’s take a closer look.
BakerySwap Liquidity Pool
In BakerySwap, BAKE token stakers can browse a bakery-themed menu. If you choose "Bread", you can earn more BAKE by staking BAKE. In addition, the corresponding BLP tokens can also be put into various liquidity pools, such as Donuts, Waffles, Rolls, Croissant, etc. Note that each option has a different potential return on investment (ROI).
Are you feeling hungry after seeing so many food names?
As of November 2020, supported BEP20 liquidity pools include:
Bread: stake BAKE and earn BAKE
Donut: stake BAKE-BNB BLP to earn BAKE
Waffle: Stake BAKE-BUSD BLP to earn BAKE
Roll: stake BUSD-BNB BLP and earn BAKE
Croissant: Stake BAKE-DOT BLP and earn BAKE
Latte: Stake USDT-BUSD BLP and earn BAKE
Toast: stake ETH-BNB BLP and earn BAKE
Cake: Stake BTC-BNB BLP and earn BAKE
Using BakerySwap
After visiting the BakerySwap website, you need to associate an eligible wallet to unlock all features. We recommend using MetaMask or WalletConnect. MetaMask is an Ethereum wallet, but can also easily support Binance Smart Chain and its DApps.
If you choose to use MetaMask, it is recommended that you read the relevant guide: "How to Use MetaMask" and follow the corresponding steps to connect to Binance Smart Chain.
Once everything is set up, you can unlock your wallet and view the details on the website.
BakerySwap operation panel.
Add liquidity
The process of adding liquidity to BakerySwap is basically the same as Uniswap or other similar platforms. First, you need to add liquidity to a decentralized exchange (DEX) and provide two tokens to participate in a specific liquidity pool. After providing liquidity, BAKE’s liquidity mining can begin.
To add liquidity, click "Trading Platform" on the top menu and select the "Liquidity Pools" tab. Next, click on the “Add Liquidity” button.
Add liquidity to BakerySwap.
Then, select the token pairs you need to provide liquidity for. In this example, we choose BNB and BAKE, so will receive BAKE-BNB BLP tokens in return.
Choose a token pair that provides liquidity.
Once you have received your BLP tokens, you should go to "Earnings" and select the option that matches your BLP tokens. In this example, we will select "Doughnut".
Stake BAKE-BNB BLP and earn BAKE.
Enter the amount of tokens to be staked and confirm the transaction. Once completed, you can safely exit the page. You can check back at any time to see how much BAKE you have earned. When staking or redeeming BLP tokens, the BAKE earned will be automatically credited to your account. You can also click the "Harvest" button to claim it manually.
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Other functions
We have discussed the core functionality provided by BakerySwap. But that's not all! You can also try other more distinctive features.
One of them is the NFT supermarket, where non-fungible tokens can be used. You can think of it as your own unique digital pet raised in the blockchain.
Another unique feature is the BakerySwap Launchpad. Here is a collection of new projects launched on Binance Smart Chain. However, compared to Binance Launchpad, these projects are not “regular” tokens, but NFTs!
The first Initial Decentralized Exchange Offering (IDO) project is "Battle Pets", a blockchain-based pet battle game. Players can breed, trade and battle other pets on Binance Smart Chain. Please stay tuned for more projects to be launched in the future!
BakerySwap NFT portfolio fund pool
BakerySwap also allows for the minting of a special package called "NFT Combo." This type of package requires BAKE to be locked and involves some random elements. The more BAKE invested, the higher the level of NFT combinations eligible for minting. Advanced NFT combinations can improve staking capabilities and obtain more BAKE when using BLP tokens for liquidity mining. You can learn about guidance on creating NFT portfolios here.
You can break it down at any time and earn back 90% of the BAKE you invested when you originally created the package. At the time of writing, all NFT combinations are sold out. They seem to have been quickly added to the oven by honest bakers.
Bakery combination operation panel.
There are four NFT combinations, each requiring a different amount of BAKE.
Standard version: 10,000-20,000 BAKE
Regular version: 20,000-50,000 BAKE
Deluxe version: 50,000-100,000 BAKE
Supreme Edition: 100,000 BAKE or more
Keep in mind that each combination brings different staking capabilities. It depends on the amount of BAKE invested and a random multiplier. Therefore, the more BAKE locked up, the stronger the potential staking capacity.
Is BakerySwap safe?
To date, BakerySwap has not reported any issues. The BakerySwap smart contract has passed the audit, please click here to view the report.
However, there is always a risk when depositing funds into a smart contract, as something might slip through the cracks during the vulnerability review process. Therefore, the amount deposited into the smart contract must not exceed the range that you can afford to lose.
Summarize
BakerySwap is a comprehensive DeFi ecosystem built on Binance Smart Chain. BakerySwap’s R&D team believes that their service is fast, cheap, and very “delicious”!
Whether it’s trading BEP-20 tokens, earning passive income by staking BAKE, or creating special NFT portfolios, BakerySwap offers users many options.
Do you have any other questions about BakerySwap and digital currencies? Please visit our Q&A platform Ask Academy, where members of the Binance community will patiently answer your questions.