Pizza Finance Project Insight: A Decentralized Exchange and Entertainment Project

CheeseSwap is developing a robust ecosystem through its AMM Dex. Users can access a plethora of features through the Pizza Finance and CheeseSwap dApps.

By
Greg Gotsis
on
March 22, 2021
Category:
Project Insight

Introduction

CheeseSwap is a Decentralized Exchange (Dex) that leverages Automated Market Making (AMM) technology. These types of Dex's first appeared on the Ethereum network, such as Uniswap and Sushiswap. In CheeseSwaps case, it is specifically a PancakeSwap fork on the Binance Smart Chain (BSC), which attributes most of its features to SushiSwap on the ETH network.

CheeseSwap features two dApps; on PizzaFinance, users can find the CheeseSwap LP farms, Initial Dex Offering (IDO), and the deflationary lottery system. The CheeseSwap dApp is where users can swap tokens and navigate the other aspects of the ecosystem.

Advantages of CheeseSwap

Earn tokens from PizzaFinance

CheeseSwap has its own native BEP-20 tokens, CHS and PIZZA, which can be staked or spread across Smart Pools. Users can also provide liquidity to CheeseSwap and stake the Cheese-LP tokens to receive additional liquidity incentives.

No Know Your Customer (KYC) policy

CheeseSwap is entirely decentralized, meaning no identification is needed. Anyone with a BSC wallet can swap tokens and participate in yield farming by providing liquidity.

Low Fee's & Quick Transactions

As previously mentioned, CheeseSwap runs on BSC, using BEP-20 tokens. BSC has much lower fees than Ethereum, with fees ranging anywhere from $0.04- $0.20 and transactions taking about five seconds on BSC.


Yield Farming on PizzaFinance

PizzaFinance is an extension to the CheeseSwap dApp, which hosts the yield farms, IDO, and lottery system. Here users can deposit their Cheese LP tokens to participate in the farming rewards provided in PIZZA tokens. There are currently 19 farms on the PizzaFinance dApp, allowing users to deposit their Cheese-LP tokens to earn liquidity incentives. Pizza pairs are allocated with the most rewards to incentivize PIZZA liquidity. This model ensures that people who are providing essential liquidity to the platform are earning the most. As PIZZA is the native token, the protocol must incentivize those who hold it. Some of the highest APY pools are as follows:

  • Pizza-BNB   (5x Rewards)
  • Pizza-USDT  (2x Rewards)
  • Pizza-ETH     (1x Rewards)
  • Cake-Pizza
  • BETH-ETH   (1x Rewards)
  • USDC-BNB  (1x Rewards)

It is important to note that liquidity providing is not risk-free. Users incur the risk of Impermanent Loss (IL) due to the arbitrage opportunity AMM's introduce. A simple way of understanding IL is that it's the opportunity cost of providing liquidity versus holding tokens. To offset this risk, transaction fees and liquidity rewards are offered to liquidity providers. While this is the case, it is still important to understand the risk of highly uncorrelated liquidity pairs, such as PIZZA-Stablecoin, as these incur the highest risk of IL.


Smart Pool

The Smart Pool allows users to stake respective tokens in a single token staking pool to earn additional rewards. Currently, these rewards are between 70%-1000% APY, with KP3RB offering the highest rewards. The point of these pools is to bootstrap further adoption to the respective projects. Any projects added to the Smart Pool will have to offer their tokens as rewards. This benefits PIZZA holders while simultaneously bootstrapping new projects to the protocol. Currently, there are no other pools except the ones that offer PIZZA incentives to CheeseSwap ecosystem tokens.


Initial Dex Offering

New projects also can apply for participation in the Pizza Finance Initial DeFi Offering (IDO). Here, projects can utilize the Pizza Finance platform to bootstrap initial users. To participate, projects will have to apply for a spot and contribute a portion of their native token to the Smart Pools. This system is a win-win as PIZZA holders earn tokens while bootstrapping new users to the IDO project.


Pizza Finance Lotteries

For those who are unfamiliar, lotteries are a fundraising process created through a crowd sale of tickets at a particular price to be entered into a raffle. The tickets contain a specific number, and if randomly chosen, the ticket holder wins the prize. The Pizza Finance lottery is no different from every other lottery. To participate in the lottery, you'll need to purchase tickets using PIZZA. 0.1 PIZZA gives you one ticket, and the number of tickets a user can buy is limitless. The draw lasts for six hours. The ticket gives you four different numbers from 1-14.

The following excerpt outlines how to win and the ratio allocated to winners:

To win the lottery jackpot (50% of the entire lottery pool), users need to match all four numbers on their tickets in the same position as the four winning numbers.

Suppose you don't match all four; no need to worry. As long as you match two or more numbers in the correct position, you are guaranteed to win a reward.

  Match all four numbers in the exact order = win 50% of the pot (or split the pot if more than one winner).

  Match three numbers in the exact order = win or split 20% of the pot.

  Match two numbers in the exact order = win or split 10% of the pot.

  Burn the remaining 20% of the pot.


Audit

CheeseSwaps audit has just been successfully completed by CertiK. CertiK is one of the leading audit firms in the current crypto landscape. Their team handles most BCS audits and are regarded as the top auditor on the chain. CheeseSwaps audit is underway, and the team at CertiK is meticulous reviewing the smart contracts for any apparent vulnerabilities. It is important to note that while audits offer additional security, they are not the holy grail. Audited projects have experienced "rugpulls" as well.

For those who wish to learn more about CertiK, check out the following article:
CertiK Project Review: A BlockChain Audit and Blockchain Security Protocol


BSC Index Grower

The team at CheeseSwap is also developing their BSC Index Grower. This is an all-in-one suite for yield farming and trading on the Binance Smart Chain. This Dex will utilize zero-knowledge (ZK) proof, a form of layer-2 (L2) scaling. The Dex is to boast no gas fees and minimal transaction fees. The clean UI/UX will allow users to access margin trading in a decentralized fashion easily. For more information on the development of this project, refer here.


Concluding Thoughts

CheeseSwap is developing a robust ecosystem through its AMM Dex. Users can access a plethora of features through the Pizza Finance and CheeseSwap dApps. This protocol gives users the ability to yield farm and seamlessly swap in a decentralized manner. The CheeseSwap ecosystem is still building as they continue to develop partnerships with projects such as Kiwi, Pizza, Hots, and Mango. Overall, CheeseSwap is forming an essential liquidity layer for multiple BSC dApps to utilize. As the team continues to develop, I am sure we will speak here of further innovation in the space.

For those who wish to learn more about CheeseSwap, check out the following resources:

Website

Pizza Farm

Twitter

Docs

Telegram

Overall it is vital to proceed with caution when purchasing tokens that have just been listed. For those who have not already read our articles on safety in the BSC it is crucial to reference the following items, HERE and HERE.

This is a paid press release, BSC.News does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. Readers should do their own research before taking any actions related to the company. BSC.News is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the press release.

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Greg Gotsis

Greg (GoonTrades) is BSC News' Chief Editor and is also a writer for the team. Currently enrolled as an economics major, he finds himself as a cryptocurrency researcher, writer, and technical trader.