BurgerSwap is a decentralized Automated Market Maker (AMM) on the Binance Smart Chain (BSC) network
What is an AMM?
Automated Market Makers (AMM) are a type of decentralized exchange (DEX) protocol that uses a mathematical formula and game theory to price assets. This is unlike traditional exchange methods that use an order book system to pair buyers and sellers. For those who wish to learn more about AMM’s check out the following article:
What is BurgerSwap?
BurgerSwap is a decentralized AMM on the Binance Smart Chain (BSC) network. Burgerswap is created for its community, and its growth is self-dependent on the community. Holders can easily change the structure of the BurgerSwap protocol through staking the community governance token, BURGER, allowing users to vote and initiate proposals. Burgerswap happens to be the first AMM application on the BSC network, launched on September 10th at 16:00 UTC.
The BurgerSwap bridge happens to be unique in the entire blockchain network because of its ability to swap coins from the Etherum Network (ERC-20 Standard) to the BSC (BEP-20 Standard) and vice-versa with significantly lower fees. This feature allows Ethereum users to seamlessly migrate to the BSC, where they will experience the fruits of low transaction fees and quick block speeds.
BurgerSwap was created to be a democratized decentralized exchange, which implies that governance is not optional but compulsory, and users make rules through voting. The developers of BurgerSwap believe that governance models in the DeFi space lack the presence of true democracy. Traditional models rely on coders to change contracts, but at BurgerSwap it is entirely determined by the community. Users/holders can vote to change the exchange parameters like trading fees, mining speed, staking rewards, and more. There’s a clause that requires users to participate in governance voting to receive a specific allocation of voting incentives, this helps bootstrap the governance feature.
All tokens available on the BurgerSwap will have a BNB and a BURGER pair. The BURGER pair is used to generate liquidity for the BURGER token, and BNB is the native token for the BSC, making it commonly used. Since BurgerSwap is built on the BSC, it is a no-brainer to include this liquidity for BNB, as all AMM’s do. To further incentivize BURGER liquidity, the protocol requires the burger pair to account for 1% of the asset’s liquidity to be eligible for mining rewards. Overall this system acts similarly to most liquidity mining structures used to bootstrap initial liquidity and users.
Once a project has been mature enough and wishes to be listed, the exchange will apply a listing fee and begin its approval system where the community approves new projects through voting. This enables them to fish out scam projects and delist them quickly. All listing fees are added to a pool and shared with Burger holders that participate in voting at least once a week. Voting days are usually set out for a day by default but can be changed by voting for a higher number of days, capped at seven days.
The initial amount of burger tokens started with an infinite supply. However, changes were made after a community meeting; a conclusion was made to cap the maximum supply to 21,000,000 BURGER tokens.
Burger can only be mined through providing liquidity; each block produces 40 burger tokens, subject to change by community voting with a range of 120 BURGER token maximum and a minimum of 1 BURGER token per block. To place trades on certain BNB pairs, there needs to be a corresponding BURGER pair with at least 1% of the liquidity relative to the BNB pair. If the minimum liquidity criteria are not met, you’ll need to provide liquidity to the BURGER pair to trade. The only liquidity pair that can mine BURGER is the BNB and BURGER pairs, others can mine other tokens but not BURGER. BurgerSwap is truly unique as there are no set-aside developers share; only 10% of transaction fees are sent to the team’s account. This move by the team is to ensure the long-term success of the exchange.
One of the main issues of DeFi projects in the markets is the reward distribution mechanism; the mechanism resides in a smart contract that automates the process. Burgerswap introduces a new implementation of the ERC-2917 token standard to alleviate these concerns. This ERC-2917 improves the power of Uniswap using both incentive model and community governance systems of the network.
Overall this fork of Uniswap has allowed users to experience the benefits of a DEX AMM from the BSC. This move by the BurgerSwap team innovates on top of the traditional model while also bringing users the benefits of the BSC.
The entire project is self-funded; everyone involved in this project’s development receives no salary for their efforts. Also, the developers announced that they have no intention of conducting any ICOs for the project. The team of developers gets a compensation fee that is 10% of all transaction fees.
This project happens to be the roadwork for AMMs on the BSC. BurgerSwap has helped draw the attention of other projects to the BSC network, where users can interact with Dapps using extremely cheap fees and seamless transaction times. Their democratic, decentralized model is top-notch and provides governance that can easily suit the community members just by voting.
In summary, BurgerSwap has strongholded its way in the BSC ecosystem and is one of the pioneers in the space. As the BSC and De-Fi continue to grow, BurgerSwap will continue to innovate on the back of the bull market.
Source : bsc.news
Founded in 2020, BSCNews is the leading media platform covering decentralized finance (DeFi) on the Binance Smart Chain (BSC). We cover a wide range of blockchain news revolving mainly around the DeFi sector of the crypto markets. BSCNews aims to inform, educate and share information with the global investment community through our website, social media, newsletters, podcasts, research, and live ask me anything (AMA). Our content reaches hundreds of thousands of global investors who are active in the BSC DeFi space.