Project Insight: BabySwap – A Baby MetaFi on BNB Chain

BabySwap aims to become a one-stop destination for upcoming projects on the BNB Chain by enabling them to get support through the protocol’s AMM, NFT platform, and GameFi.

Introducing BabySwap

BabySwap is a decentralized exchange (DEX) on the BNB Chain. It offers features such as token swaps, yield farming, liquidity pools, perpetual trading, etc. It uses an Automated Market Maker (AMM) model, which matches buy and sell orders directly with others in a liquidity pool. However, it is much more than just an exchange; it is a holistic MetaFi ecosystem combining Decentralized Financial (DeFi) elements with a Non-Fungible Token (NFT) platform and the GameFi Metaverse

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Although at first glance, the name can be misconstrued as churlish and incendiary. But, BabySwap seems to be following the footsteps of popular ‘swap’ protocols in the BNB chain (at least in nomenclature), such as Pancake Swap, Bakery Swap, Sushi Swap, etc. 

However, it is called ‘BabySwap’ because it was designed to list and support new and upcoming projects (when they are in the ‘baby’ stage) meanwhile also providing users early exposure to these new projects. The ecosystem is powered by the BABY token, which has many use cases, more on that later.     

Value Proposition

Unlike many DEXs that allow users to trade relatively safe and established assets on their platform, BabySwap sets itself apart by including and supporting long-tail assets that are generally not listed everywhere–thereby creating an environment for supporting new and upcoming projects. 

This strategy involves driving growth by targeting a large market base with a portfolio focused on niche and hard-to-find products mixed with some established and blue-chip offerings. It also allows BabySwap to catch assets and projects very early in their growth curve, thereby enabling the ecosystem to offer staggering APYs through its products. This acts as a great marketing and strategic tool to attract even more investment → more rewards → more participation → more development, etc., leading to the overall growth of the ecosystem. 

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Overall, BabySwap’s value proposition can be summarized as follows:

It is completely decentralized, which means users do not have to transfer tokens to the exchange; instead, they can directly link their wallets and trade.

It also offers users the ability to instantly swap tokens without the need for an account or registration.

As it runs on the super-efficient BNB Chain, the transaction costs are much lower and faster compared to institutional-grade chains such as Ethereum.

It is one of the first exchanges on BNB to recommend the USDT swap route, which the DeFi community is mainly familiar and comfortable with. This also significantly lowers arbitrage costs between BabySwap and other exchanges.      

It has a dedicated Growth Fund to support new and upcoming projects with liquidity and resources.

It was audited by renowned auditor CertiK PeckShield.  

Products

BabySwap offers all of the features of competing exchanges’ such as token swaps, farms, and pools. It also provides some innovative optimization and support services such as Trade Mining, NFT platform, and GamePad, in addition to the Bottle Growth Fund, arbitrage support, engagement increasing activities, and an intuitive, easy-to-use interface. Let’s briefly examine the products offered by the all-encompassing MetaFi ecosystem. 

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Decentralized Exchange  

The exchange is at the core of the ecosystem. It allows users to trade without going through a Centralized Exchange (CEX). Instead, all the activity is directly routed through the user’s wallet. In order to maintain enough liquidity to support trades, users’ deposits are paramount. Users can earn trading fees and liquidity provider (LP) tokens by providing this liquidity. LP tokens are redeemable for the initial capital deposited, plus any fees earned, minus any impermanent loss. Furthermore, LP tokens can then be staked, farmed, and traded. 

Some of the key features offered by the exchange are as follows: 

Token Swaps: This mechanism is used for trading one BEP20 token for another via automated liquidity pools. Users can swap any crypto token and are rewarded with BABY rewards on every trade. There is a 0.30% trading fee charged on every transaction. This fee is used for the following:

0.15% – Returned to liquidity pools in the form of fee rewards for liquidity providers.

0.05% – Used to buy back BABY tokens for the burn mechanism.

0.05% – Distributed to vBABY holders as USDT dividends.

0.05% – Used to reward vBABY holders with BABY tokens.

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Smart Router: A recently introduced feature, the Smart Router significantly enhances the prospects of scalability by allowing users to trade almost all of the BEP 20 Tokens on BabySwap with better slippage. In the previous router mechanism, the trades relied heavily on liquidity pools, and for this reason, eight BABY tokens were allocated to each block and distributed to liquidity providers–encouraging users to add liquidity. Tokenomics upgrades were impacted by this mechanism, and these problems were resolved by providing a Smart Router solution that also provided a better trading experience, reducing the need for liquidity pools. 

Liquidity Pools: LPs allow users to provide liquidity by adding tokens to liquidity pools.

They receive LP tokens which act as a receipt and determine their share in the pool. Users also earn rewards for the period of the liquidity provided in the form of trading fees generated from the transactions on the exchange. 

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Users can redeem their funds at any time by withdrawing the liquidity. BabySwap also offers BABY Pools and Snack Pools. They are the simplest way to earn free tokens on BabySwap. In the BABY Pool, users can stake their BABY tokens and earn other tokens such as PXP, CBT, OCEANS, etc., whereas, in the Snack Pool, users can stake altcoins and earn rewards in altcoins. 

Perpetual Futures: BabySwap offers perpetual trading in partnership with ApolloX–a decentralized derivatives trading protocol. Perpetuals are future contracts with one difference; they do not have an expiration date. 

Users on BabySwap can leverage long and short positions on future asset prices. They can borrow additional funds based on the leverage selected, which allows them to trade with a much larger amount than their collateral. However, perpetual trading has a significant liquidation risk compared to spot trading; therefore, this feature is suited to more experienced traders. 

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Privacy Cash: BabySwap partnered with Tornado Cash, a non-custodial protocol, to provide the Privacy Cash feature. The core of privacy cash is to improve transaction privacy by breaking the on-chain link between source and destination addresses. It uses a smart contract that accepts BNB deposits from one address and enables their withdrawal from a different address. Users can exchange up to 10 BNB per transaction with privacy using this feature. 

Vaults and Farms: BabySwap vaults and farms allow users to stake LP tokens from other platforms to earn other tokens on BabySwap. The return on each vault/farm depends on the value of LP tokens and the price of the token staked. Vault/Farms can generate higher APRs than Pools; however, there is a risk of impermanent loss. 

NFT Ecosystem

The platform’s NFT ecosystem comprises two key elements: NFTs minted by BabySwap called Non-Fungible Babys (NFBs) and the NFT Market marketplace. The NFB is cryptographically generated sets of unique, immutable, digital baby figures. They are limited-edition digital assets with a fixed face value in BABY. They can be stored in the wallet, staked in NFB mining, or traded in the marketplace. In addition, users can obtain these rare assets through the marketplace or airdrops. 

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The NFT Market is a dedicated platform for exploring, collecting, and selling NFTs. It integrates the platform’s in-house NFTs–NFBs and provides a platform for projects to launch their INO (Initial NFT Offerings) and IFO (Initial Farm Offerings). 

BabySwap has listed 11 collections, including Star Sharks, The Crypto You – Pet, Diviner Character, Pancake Squad, Anonverse Tower, STEPN Sneaker, Biswap Robbies Earn, Gamester Apes, Polychain Monsters Official, XWorld –DreamCard, XWorld – DC Equipment.

GamePad

The GamePad is one of BabySwap’s flagship features. It is a launchpad for new GameFi projects. It offers support to new projects in terms of investment, which is critical during the game’s early development and helps them launch their initial game tokens through ICO (Initial Coin Offerings) and IGO (Initial Game Offerings). It also provides DeFi services for the projects’ governance tokens and game assets, such as allowing them to expand their token utility on the exchange through staking in pools, vaults, etc. Further, it supports new projects through growth funds, marketing, community, and media resources. 

Playground and Activities

BabySwap has a playground section, which offers users additional utility for BABY token holders. They can use BABY to play and earn on various games and other initiatives (vaults, payment, NFT minting, yield farms, etc.) provided in partnership with other protocols. Moreover, the platform has an activities section that offers users the ability to participate in simple and easy tasks which can earn additional rewards. This initiative is also offered through partnerships with other protocols. These mechanisms are designed to attract traffic and provide users with exposure to benefit from partner protocols.   

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BABY Token

BABY is the protocol’s native utility token. It is a BEP-20 standard token with a supply limited to 1 billion. Users can earn BABY from trade mining, yield farms, and snack pools or buy it on the exchange. The token can be used for the following: 

It can be staked in pools to earn free tokens and rewards.

It can be farmed to earn more BABY tokens. 

It allows users to vote on projects eligible for the Bottle Growth Fund.

It will enable users to participate in IFO sales. 

Users can also use it to mint NFTs.  

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The daily token emissions are limited to 576,000 tokens for five years. 80% of the supply is allocated to the community, and 19% is allocated for the platform’s development, with 1% used for initial liquidity issuance. The token is designed with a deflationary mechanism such that 0.05% of each transaction, 2% of yield harvest, and 10% of the fee from BABY minting is burned in addition to 1% of BABY earned from each NFT transaction in the playground.  

BabySwap also has a VIP membership program represented by the vBABY token. One vBABY token is minted from 100 BABY tokens. vBABY holders receive additional rewards such as 0.05% of the trading fee, 2% of the NFT market trading fee, 50% of vBABY fees generation from the vBABY redeeming mechanism, which charges users 10% for exchanging vBABY for BABY tokens, and many more rewards for referral, USDT dividends, etc.    

Baby MetaLabs

MetaLabs is the project’s dedicated private investment department. Through MetaLabs, BabySwap intends to invest in Web3 Infrastructure, DeFi Protocols, GameFi, and SocialFi projects and, in some cases, support them with initial offering, marketing, liquidity, etc. The investment decisions will be based on carefully evaluating projects, including tokenomics, roadmap, etc. MetaLabs will also benefit core users by airdropping tokens, NFT, adding whitelists, etc., while enabling new projects to initially offer their assets on BabySwap.

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Recent Developments

The project recently released its retrospective introspection of the past year on its medium blog. While reporting strong profitability and growth for the last year, for the future, it has decided to focus on three key areas:

Asset Service: Includes up-gradation, optimization, and innovation of existing offering such as trading, staking, NFT, GamePad, activities, etc.

Brand Awareness: Through increasing visibility and presence of the Baby Avatar on both Web 3 and Web 2 platforms with a marketing budget of $ 100,000.

Platform Value Enhancement: Through Tokenomics upgrade, even greater empowerment of the BABY token.

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It has announced partnerships with various DeFi, GameFi, and NFT protocols through the BaBySwap Friend program. The partnerships allow protocols to list tokens/assets on BabySwap, thereby providing its core users with exposure to new and upcoming assets while supporting these new projects with a large user base, thereby creating an environment of symbiotic growth. 

Team Background and Roadmap

BabySwap’s team operates across different time zones, with strong expertise in blockchain development, DeFi engineering, marketing, and community building.

The team has already executed several milestones on its stipulated roadmap like the launch of the NFT collectibles, marketplace, games like The Crypto You and vBABY, and the proof of membership token minted by BABY at a fixed rate. The roadmap for the project mentions the below features and aspects that will be executed in the near future:

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The roadmap also holds a new personal dashboard for the users and an incubation alliance to support upcoming projects further. 

Concluding Thoughts

BabySwap has grown quickly after its launch on June 1, 2021. The protocol hits an all-time high in total value locked (TVL) of $627.42 million as per data from DeFiLlama. Currently, the protocol has a TVL of $71.39 million, just over 11% of the protocol’s all-time high in TVL. This ranks the protocol at number 16 compared to the TVL of other protocols building on the BNB Chain.

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It is important to note that BabySwap operates in a highly saturated DEX market on the BNB Chain. In comparison, the giant PancakeSwap has a TVL of over $4.8 billion. Moreover, other DEXs and AMM platforms like BiSwap, Alpaca Finance, and ApeSwap have been around longer than BabySwap. However, the protocol still manages to create a unique user proposition for users in the BNB community with its baby-themed offerings, support for upcoming projects, and combining the concepts of metadata and DeFi, to establish a unique MetaFi ecosystem.

Find more about BabySwap here:

Website | Twitter | Medium | Documentation | Telegram | Discord | Github

‍Source : bsc.news

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