ALL THERE IS TO KNOW ABOUT BURGERSWAP: A COMPREHENSIVE GUIDE
BurgerSwap is decentralized finance (DeFi) protocol that operates based on the Binance Smart Chain (BSC). It comes with an ecosystem that promotes swapping tokens generated via farming and other transactions. Liquidity Providers (LPs) on this platform can earn rewards by adding liquidity to the BurgerSwap pool. However, the protocol does not provide the traditional LP token, compared to the likes of SushiSwap and UniSwap.
In contrast, LPs who offer liquidity to matching pairs earn BURGER tokens as their share in the liquidity pool. It is worth noting that the decentralized exchange (DEX) implements the automated market-making (AMM) model. This DeFi project is similar to the likes of BakerySwap, MoonSwap, and UniSwap by providing users in the ecosystem with liquidity, which enables them to earn tokens.
Background of BurgerSwap Project
BurgerSwap exists based on the DEMAX DeFi platform, which runs on the BSC. As a result, holders can swap their tokens easily, thanks to the democratic decentralized mechanics. Such mechanisms create room for the community to alter parameters via transparent voting. Users in the ecosystem can develop proposals requesting transaction fee modification, bar incentives, pass or reject proposals through a voting system, among other capabilities.
This decentralized DeFi project functions optimally via smart contracts. As such, no centralized entity controls or dictates whatever happens within the ecosystem. Users can earn BURGER tokens by creating liquidity, voting, and staking tokens.
How to Use BurgerSwap
To use BurgerSwap, you need a Web3 wallet, such as MetaMask. Create a wallet on this platform and link to the Binance Smart Chain (BSC). Check out the BurgerSwap address: https://burgerswap.org. On the homepage, connect the MetaMask wallet to the protocol by clicking the “Connect Wallet” tab. Ensure that your wallet is on the Binance Smart Chain and not the Mainnet Ethereum network. After establishing the connection, navigate to BurgerSwap products. Here, you will see the following:
On the BurgerSwap protocol, select any crypto asset of choice. These assets operate on the Binance Smart Chain. Swap your BEP-20 tokens for BURGER tokens. For example, you can swap BNB for BURGER. However, before doing that, ensure that you go through the transaction fee, price impact, and other related information on the page and you are satisfied with them.
BurgerSwap Liquidity Pools
You can add liquidity to a newly created BurgerSwap pool or an existing one. To do this, visit the Pool tab and click the “Add Liquidity” button. Once done, select your pair, of which you will need tokens to match. Select the “Approve” button to add liquidity to the pool. Once the transaction is completed, you are now an approved LP. You will get BURGER tokens relative to our share in the liquidity pool. Stake your tokens using the BurgerSwap Governance button. This process allows you to create proposals or vote on existing ones.
What You Should Know About Farming BURGER Tokens
Being in the ecosystem gives you a platform to earn rewards by swapping tokens. You can earn BURGER, BNB, and USDT rewards. Farming BURGER tokens come in two forms:
Your share of the pool in terms of LP tokens depends on the amount of liquidity you provide. As long as you are a consistent LP in the BurgerSwap ecosystem, you will receive rewards. Trading on the BurgerSwap platform comes with 0.3% fees ( a charge which was in place as of November 2020). Part of the fees goes to the LPs. As each BURGER tokens are mined in each new blocks, these individuals have a share in the token allocations. Furthermore, a portion of the token generated from trading fees is destroyed, based on the DeFi protocol’s burning mechanism. The list below describes the reward allocation process.
However, it is worth noting that the allocation amounts are temporary and may be changed anytime, depending on users’ votes in the ecosystem.
Other Projects Associated with BurgerSwap Protocol
Perhaps, you have heard of the BurgerSwap cross-chain bridge. What does this mean? Being in the BurgerSwap ecosystem means that you can only trade and provide liquidity with BEP-20 tokens. But not anymore. The cross-chain platform bridges that gap. If you have an ERC-20 token, you can now convert them into wrapped BEP-20 tokens, also known as bTokens. This process shares similarities with tokenized cryptos like ETH and BTC.
Most of the assets on the BurgerSwap exchange are not native Binance Smart Chain tokens. These include the likes of Bitcoin, Ethereum, Ripple, and Bitcoin Cash. However, by converting them to BEP-20 tokens through Binance withdrawals or BurgerSwap cross-chain bridge in the form of bTokens, you can trade them on the BSC platform. However, this is not s straightforward process as you have to change your Web3 wallet network between the Ethereum blockchain and Binance Smart Chain during conversion.
You can trade the bTokens as well, provided that you add enough liquidity to the specific pair. For example, you will be dealing with bToken/BURGER and bToken/BNB pairs. For this reason, you have to monitor specific parameters, such as the Price Impact before the transaction. If the liquidity is low while trading, there is a high chance of you witnessing immense slippage.
BurgerSmart is highly secure as there has been no report about the protocol. In September 2020, Beosin, a notable Blockchain security firm, conducted an audit on the first network version. Nevertheless, understand that certain risks come with depositing money into a smart contract. There may be a possibility of security experts not noticing inconspicuous bugs in the framework during an audit. As such, only deposit money you can risk.
As stated before, there have been no complaints in the BurgerSwap ecosystem. Similar to other DeFi projects, this protocol stands out from the rest by offering holders and LPs exquisite features, such as the governance/voting system and the BurgerSwap cross-chain bridge.