Summary
BurgerSwap is a DeFi protocol running on Binance Smart Chain (BSC). It allows you to swap between tokens issued by BSC and earn rewards by providing liquidity to these decentralized markets.
Unlike other similar DeFi projects such as Uniswap and SushiSwap, you will not find the usual liquidity provider (LP) tokens on BurgerSwap. Instead, everyone who provides liquidity to eligible trading pairs will receive BURGER tokens representing their share in the pool.
What is SushiSwap?
BurgerSwap is a DeFi protocol built on Binance Smart Chain (BSC) as a decentralized exchange (DEX) that adopts the automated market maker (AMM) model. Similar to PancakeSwap, BakerySwap and other protocols, it allows users to earn tokens by providing liquidity.
Connect MetaMask to BurgerSwap
Before you link your MetaMask wallet to BurgerSwap, you need to first link your wallet to the Binance Smart Chain. If you don’t know how to do this, please refer to Linking MetaMask to Binance Smart Chain.
Next, go to the BurgerSwap homepage (https://burgerswap.org). Click the “Link Wallet” button. Make sure you switch from the Ethereum main network to the Binance Smart Chain.
After linking your wallet, you will be able to view and browse BurgerSwap products (exchanges, mining pools, governance, cross-chain bridges, etc.).
How to use BurgerSwap?
At BurgerSwap, you can exchange a variety of BEP-20 tokens (crypto assets running on BSC). You can find a list of available trading pairs here.
For example, if you want to trade BURGER for BNB, you would go to Swap, insert the amount of BNB you need to swap, and click the “Swap” button.
Before exchanging tokens, always check the price impact, transaction fees, and other details.
How to add liquidity to the BurgerSwap pool?
Any user can provide liquidity (add tokens) to the BurgerSwap platform. These tokens can be used to create new liquidity pools or add to existing liquidity pools.
To provide liquidity, navigate to the Pool tab, click "Add Liquidity", and select your token pair. Please note that you will need to click the "Approve" button before adding liquidity to the pool and making a blockchain transaction. This transaction will allow you to use the token in the BurgerSwap contract. Once the transaction is approved, you can proceed to add liquidity.
When you add liquidity to the pool, you will receive BURGER tokens proportional to your share of the pool. See the BurgerSwap guide for details.
BurgerSwap Governance
You can stake BURGER tokens through the “BurgerSwap Governance” tab. You will need BURGER to create new governance proposals or vote on existing ones.
BurgerSwap cross-chain bridge
Since BurgerSwap runs on BSC, you can only use BEP-20 tokens to trade or provide liquidity. However, BurgerSwap provides a cross-chain bridge service that allows you to convert any ERC-20 token into a wrapped BEP-20 version (bTokens). This is similar to how some tokenized Bitcoins on Ethereum are created, but in this case, the conversion occurs between ERC-20 and BEP-20 tokens.
You may have noticed that the Burgerswap trading platform offers many assets that are not native BSC tokens, such as BTC, ETH, BCH or XRP. These assets can only be traded on the BSC network because they are converted into BEP-20 tokens through cross-link (bTokens) or through Binance withdrawals.
Keep in mind that you may need to replace your MetaMask network with the Ethereum and BSC blockchains during this process. In addition, bTokens can only be traded when there is sufficient liquidity in their respective Binance Coin (BNB) and BURGER token pairs (bToken/BNB and bToken/BURGER). Therefore, it is important to pay attention to the price impact before approving a trade. Trading pairs with low liquidity will most likely result in larger slippage on your trades.
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BURGER Mining
BurgerSwap offers rewards in BURGER, USDT, and Binance Coin (BNB). Users can mine tokens in two different ways: providing liquidity and participating in governance.
Any user who provides liquidity to BurgerSwap will receive BURGER tokens proportional to their share of the pool. As long as they continue to provide liquidity, they will be eligible for rewards.
As of November 2020, BurgerSwap charges a 0.3% transaction fee for all trading pairs, a portion of which will be distributed to liquidity providers. They will also receive a certain share of BURGER from each new block.
Users can also participate in project governance through the voting system to receive rewards.
In addition, BurgerSwap has set up a mechanism to destroy a certain percentage of BURGER obtained from transaction fees.
In general, the rewards are distributed as follows:
40% of the rewards will be distributed to liquidity providers on the platform.
30% of the rewards will be distributed to governance/voting participants.
30% of the rewards will be permanently destroyed.
This ratio may change as new users propose new proposals and vote on them.
Is BurgerSwap Safe?
Blockchain security firm Beosin audited the first version of the smart contract in September 2020. As of November 2020, BakerySwap has not reported any issues.
However, there is always a risk in depositing funds into smart contracts, as there may be loopholes in the vulnerability audit process. You should not deposit more funds than you can afford to risk.
Summarize
BurgerSwap is one of the first DeFi projects launched on Binance Smart Chain. Although similar to other platforms, BurgerSwap offers unique features such as cross-chain bridges and governance systems.