Project Insight: BakerySwap

What Is BakerySwap

BakerySwap is an all-in-one automated market maker (AMM), decentralized finance (DeFi) protocol that supports swaps, yield farming, and NFT applications on BNB Chain. BakerySwap happens to be among the top decentralized exchanges (DEX) on the BNB Network. As for BakerySwap, they are the first NFT-Fi platform on BNB Chain. The protocol launched in September 2020 and has not looked back. 

BakerySwap has made its name on BNB Chain as one of the premier places for NFT artists. The concept of NFT-Fi refers to the use of Non-Fungible Tokens Financially, in this case, yield farming. Previously, BAKE was used to mint a random NFT “combo” meal, this unique NFT doesn’t just serve as an NFT alone, but it has staking power that means it can be staked to earn bake.

Users can no longer mint new Combos, but they are still listed on the NFT marketplace. BakerySwap also offers a more traditional NFT market, which allows community artists to list their NFT artwork.

Similar to other traditional AMM models, BakerySwap liquidity pools have a 0.30% transaction fee, of which 0.25% goes to the LP (liquidity provider) while the remaining 0.05% is given to bake holders.

The team at BakerySwap is an anonymous group of developers who utilize a fully decentralized autonomous organization (DAO). Following these principles, they don’t believe in pre-reserved tokens or pre-sale tokens for the team; instead, they share a ratio of 100:1 of farmed BAKE. Every 100 BAKE tokens farmed, the developers receives one bake, which is low in view with other projects developer’s fees.

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The BakerySwap (BAKE) Token

The native token is known as BAKE, and is attached to the platform that serves as the governance token. BAKE token is the native BEP-20 governance token. Users can earn BAKE tokens by providing liquidity on BakerySwap. BAKE holders can use their tokens for governance voting as well as for receiving transaction fee dividends.

BakerySwap has a very similar tokenomics model to SushiSwap as well as PancakeSwap (PCS), as both Bakery and PCS have forked from the Ethereum native, SushiSwap. This is a tokenomics model that incentives liquidity providers heavily, attracting a large amount of users and liquidity. 

On the other side of the equation, the incentives are fueled by a highly inflationary BAKE block reward. The team has set in measures and continues to innovate to make BakerySwap a net deflationary token ultimately. Overall, the BakerySwap team is battling against inflation for the time being, but it allows users to reap bountiful rewards and bootstraps the protocol's liquidity.

BAKE tokens can be purchased on various crypto exchanges like PancakeSwap and Binance. 

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Strategies to Evolve $BAKE Token Economy

The anonymous team of BakerySwap provided some solutions to AMM’s critical problems, the most significant being battling the constant inflation due to BAKE rewards. The answer to this is to reduce the supply while increasing the demand simultaneously, which is easier said than done. The team also plans to use assets and contracts merged with theirs to create more robust products.

The following excerpt from the BakerySwap Medium outlines the DAO’s goals:

1. Only rewarding $BAKE related pools to support $BAKE value.

2. Leveling the liquidities of non-$BAKE related pairs from all the other swap exchanges AMM, instead of relying on $BAKE rewarding to attract the non-$BAKE liquidity providers.

3. Making the BakerySwap AMM more user friendly and also including new features on making smart contracts with other tokens to be able to farm BAKE or consume them, which including the following strategies:

3.1 Launchpad: projects may use any of the $BAKE pair LP tokens for fundraising, and after redeeming the LPs token, the corresponding $BAKE will be burned, and the other tokens will be distributed to the project team.

3.2 $BAKE staking pools: users can stake $BAKE to farm new project tokens or assets within the projects.

3.3 Paying with $BAKE — for partners selling their crypto assets on Bakery, they have to accept $BAKE payments and split the profit with us, and we will burn our shares of $BAKE.

Overall, the team identified a prevalent issue and created a plan of attack to resolve or reduce it. An ICO’s incorporation will greatly benefit BAKE holders bringing new users to the platform while also driving value through BAKE burns. This model has proven successful when used by Bakerys’ competitor PCS.

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Featured Artists on The Bakery NFT SuperMarket

The NFT supermarket launched on the BakerySwap ecosystem and lots of development has been made on this section since began. This unique supermarket has become the new home to the Bakery Combo and a structured NFT platform displaying other options like digital artworks, Binance NFT, battle pets, weapons, pet eggs and BNB Chain artists.

The Featured Artist section brings together artists around the world to trade their various virtual artworks on the BakerySwap network. BSC News has had several in-depth interviews with some of the featured artists including Irene Cerezo, Custom Horror, CoralCorp, and Sergi Stamp.

How to Put Artwork on BakerySwap:

The v3 of the BakerySwap NFT marketplace is alive and ready. Thousands of artists have uploaded their works to begin making cryptocurrency profits. 

• Step 1:

On the ‘Explore’ page https://www.bakeryswap.org/#/explore and click the ‘Create’ button.

• Step 2:

Fill in the form on the ‘BSC Artists’ page.

Enter your artwork’s name, your name, your website or social media link, and a description of your artwork.

• Step 3:

Upload the image of your artwork by clicking ‘+’ in the image upload window. The image requirement is size not more than 10m, 3:4 ratio, and .jpg or .png format.

Also tick the declaration of copyright T&C.

Click ‘Mint’ button and wait for approval, and it may take a while.

• Step 4:

Once your artwork is approved, you may set the price and your artwork will be listed on the ‘NFT Supermarket.’

You can view your NFT by clicking ‘my artwork’ button on the Featured Artist page

Buying NFTs (Combo)

1. Go to http://www.bakeryswap.org/

2. Ensure you are connected to the BNB Chain network

3. On the BakerySwap site click ‘NFT SUPERMARKET
   
   

4. Below you’ll see a BakerySwap Combo
   

5. Check BAKE balance and ensure its enough for the Combo you want to purchase
6. Once the transaction has been approved, then your Combo NFT is transferred to your custody
7. You can check the staking power of  your Combo when farming with it
8. Your earned BAKE and Staking Power will be displayed in ‘My Combos’.
9. Select one of the Combos to approve your NFT BLP for farming by clicking the ‘Approve Food BLP’ button.

This same process can be followed to buy other BakerySwap NFTs. The only NFTs that are used for yield farming is the Bakery Combos, meaning steps 7-9 won’t apply.

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How Do Combos Function?

There are four tiers of Combo: basic, regular, luxury, and supreme. The more BAKE contributed, the higher the combo level you’ll receive, which determines your NFTs staking power. If lucky, you can get a Combo with high staking power at a low cost.

The decompose function on BakerySwap Combo NFTs gives it an utmost advantage over the ERC721 tokens, meaning Combo NFT’s can be destroyed, and you’ll get back up to 90% of your bake used in making the NFT. This feature is not supported on ERC721 NFTS, but it allows users to decompose rather than sell Combos at a considerable discount. If you were able to get a combo with high staking power at a low cost, you could make easy profits by selling to others

Users could only mint Combo NFT’s for a limited time through contributing BAKE; the more BAKE contributed, the higher the combo tier.

The following outlines information regarding combo creation for the BakerySwap team:

Combo Staking Power = R * B

R = a random number generated when composing a Combo

B = the amount of BAKE contributed for composing a Combo

The reward multiplier for Bakery Combo is 10x, and all multipliers become:

For more information on Bakery Combos:

Bakery Combos — the First NFTfi Platform on Binance Smart Chain

Providing Liquidity on BakerySwap Thru Earn

Liquidity mining is very common practice on AMM's, and BakerySwap isn’t so different, so join me as we go through these steps:

Step 1. Connect to the smart chain network on your TrustWallet/MetaMask

Step 2. Click on the exchange button

Step 3. Click on pool

Step 4. Provide liquidity to the pool you prefer to get your Blp token.

Step 5. After providing liquidity click on earning

Step 6. Click on the earn bake button, you’ll see various options to stake, select your pool and deposit your Blp token

BakerySwap’s Earn function is constantly evolving. There are dozens of LPs pools to take advantage of while BakerySwap continues to find new and exiting partnerships for users to chase those high APYs. 

LaunchPad and Gamification

The BakerySwap Launchpad is a where users can get access to newly launched projects on BNB Chain. BakerySwap has done well to team with exciting projects for its users. The launchpad offers users an early look at protocols launching tokens. The first Initial Dex Offering (IDO) was for Battle Pets, a PlayToEarn pet battle game. There have also been offerings for DeFi protocols like Mars Ecosystem.

BakerySwap has also instilled new aspects of gamification on the platform. The protocol offers early access to NFTs and land sales across the BNB Chain. Users are given chances to gamify these sales in various ways and boost the sales to involve a form of entertainment. The gamification is an exciting tool for BakerySwap to give PlayToEarn games and others, an extra mechanism to extend their game and its reach.

BakerySwap also has its own PlayToGames where users can earn NFTs.There are over 4 games in the gaming collection, and they include:

• Rare Cars
• Game Box
• Crypto Doggy shop
• Poker BlindBox
  

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Concluding Thoughts

Bakeryswap has pioneered as one of the initial AMM DEX on BNB Chain. The team has developed a fully functional DAO that will serve an advisory role in future developments. BakerySwap has already achieved significant milestones as they continue to battle for the leading AMM spot.

The protocol has a robust security background, with no history of exploits or scams. The protocol also has a stellar audit report from Certik. The BAKE token has never hit zero as well. The token has maintained relative price in its whole histor, and only recently fell below the $1 for a sustained period. 

BakerySwap is one of the original protocols to BNB Chain. Its has seen several different developments in its existence and continues to cook up new innovations for users. The team from BakerySwap has many developments in the pipeline, the most exciting being NFT aggregation and decentralized derivatives trading. Overall, keep an eye out on BakerySwap as DeFi growth continues to explode alongside the teams' hard work and innovation.

For more information, or if you wish to stay up to date on the project, check out their platform and social media pages.

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