BurgerSwap is a decentralized exchange built on top of the Binance Smart Chain (BSC) that allows users to conduct cryptocurrency swaps facilitated by its automated market maker (AMM).
Decentralized finance (DeFi) growth has sustained its momentum over recent months. With it came different projects that offer token exchange services. However, most of them suffer from liquidity and slippage issues, making trading expensive for their users. BurgerSwap offers a comprehensive set of tools that can solve these concerns.
BurgerSwap features multiple incentive systems to encourage more users to supply liquidity to the protocol. And with an increase in its liquidity, users can expect more efficient trades than before without incurring huge gas fees.
BurgerSwap is among the first DeFi platforms deployed on the BSC. It is a project that aims to make the products and services available in DeFi much cheaper and reliable. Ever since the platform was launched, there have been no reports of any issues coming from users as of yet, which is a testament to its reliability.
Learning from the bad experiences of other platforms and their users, BurgerSwap’s smart contracts were audited by a reputable blockchain company named Beosin. This lessens the likelihood of rug pulls or buggy smart contracts that had been the bane of most DeFi protocols until today. It still has to be noted, however, that depositing assets into smart contracts isn’t risk-free. Caution is still necessary whenever you choose to transact using DeFi platforms.
What is BurgerSwap?
BurgerSwap is a decentralized exchange built on top of the BSC. It allows users to conduct cryptocurrency swaps which are facilitated by its AMM. The AMM is supported by its liquidity pool where users can supply tokens in exchange for platform rewards.
The main goal of the platform is to address the problem of most Ethereum-based exchanges with gas fees, price slippage, and slow transaction speeds. Through its ETH-BSC bridge, users can also easily swap their ERC-20 tokens on BurgerSwap.
Ultimately, the architecture of the platform is closely similar with projects from the same space, such as PancakeSwap, BakerySwap, and many others. BurgerSwap’s AMM model provides its users with incentives if they supply liquidity to the exchange.
Setting Up BurgerSwap
It is fairly easy to set-up BurgerSwap. All you’ll need is an online wallet such as MetaMask, TrustWallet, MathWallet, TokenPocket, and Binance Chain Wallet. Once you already have one, you can just go to the website and link your wallet to begin trading.
You will need BURGER tokens on the platform in order to facilitate your transactions. To acquire them, you can purchase them straight away from cryptocurrency exchanges that list the token or by purchasing Binance Coin (BNB). If you already have BNB, you can transfer them to the wallet you linked on the platform and swap them with BURGER.
When trading on the platform, you will be given the option to adjust the slippage tolerance for your swap. This refers to the level of change in price you’re willing to tolerate as you conduct your swap. You can freely set it around 0.1%, 0.5%, or 1%. If you’ll be swapping other tokens too, you can follow these same considerations as well.
As already mentioned, the BurgerSwap AMM is powered by a liquidity pool. This is a pool of cryptocurrency tokens from users of the exchange and is used in order to facilitate the trading and swapping of tokens on the platform. Users who supply assets on the pool are called liquidity providers (LP).
LPs are given rewards in proportion to the amount of assets they locked in the liquidity pools in the form of $BURGER tokens. In order to provide liquidity to the platform, a user needs $BNB since the blockchain requires it for the gas fees.
Furthermore, make sure that the tokens you want to supply to the pool are on the BEP-20 blockchain, which is Binance Smart Chain’s standard. You can swap your ERC-20 based assets into BEP-20 supported tokens using the platform’s cross-chain bridge.
There are already a lot of liquidity pools to choose from, but if you want to open a new liquidity pool, you can start a new one for a token pair of your choice. Remember, however, that you have to deposit both trading pairs on the pool. There is also a minimum percentage of token deposits you’ll need to consider in order to provide liquidity to a token and $BNB pair.
Remember, however, that only BNB and BURGER pairs can be used to mine BURGER tokens. Providing liquidity to other token pairs does not earn BURGER rewards.
$BURGER is the native, utility token of the platform. It can be used for transaction fees, trading, staking, and voting functions. There are many ways to earn BURGER tokens. Apart from supplying liquidity to the AMM’s pools, users can also decide to stake some supported tokens through Burger Shack.
Staking through Burger Shack
There are assets, apart from BURGER, that can be staked on the protocol’s smart contracts, such as BNB, BUSD, USDT, BTCB, MDX, HMDX, and ETH. In return, users earn both USDT and xBURGER.
All the assets deposited in the Burger Shack smart contract are distributed to yield pools that offer the best returns in order to ensure the highest rewards for stakers. The reward for their stake is also proportional to the amount of tokens they deposit. This is a preferable choice for those who do not want to carry the risk of impermanent loss.
Staking through xBurger Pool
There is also an option to deposit assets on the xBurger pool. This provides stakers with BURGER and xBURGER simultaneously. Here are the trading pairs which can be staked on the xBurger pool: xBURGER/BURGER, xBURGER/USDT, xBURGER/BNB.
Liquidity providers get BLP tokens when they deposit assets to liquidity pools. The BLP tokens, in turn, can also be staked in Burger Farms. They can be unstaked anytime the user chooses to.
BurgerSwap allows users to lend their assets to other interested takers. What the protocol does is aggregates all the assets that are designated for lending, which other platform users can avail for a specific amount of interest. Then, all the interest collected from the loans given out through the pool is distributed to the contributors in proportion to the amount of their deposit.
Stakers of BURGER tokens compose the community that govern the direction of the protocol. This means that they have the ability to make and approve proposals related to the parameters of the platform, such as transaction fees and block rewards, among others. If the proposal a staker voted for gets passed, they will also receive incentives in return.
With the rise of many decentralized exchanges (DEXs) in the space, it is worth looking into their incentive structure to determine how they aim to get people to support their platform. It is not enough that they put in place liquidity pools or AMMs. There should also be multiple options for users to contribute their idle assets to the market for a definite amount of rewards.
BurgerSwap has a promising approach on that particular aspect. Using the platform’s native token, or any other supported cryptocurrency asset, they can earn more tokens in reward. Using advanced DeFi concepts such as liquidity mining and yield farming, users can also produce optimal gains from their holdings. With this reward structure, adoption is not a distant achievable goal for the project. And in turn, this complements the aim of the project to achieve better liquidity.