Have you heard of Uniswap? BakerySwap (BAKE) is similar to that. You can refer to it as the next version of Uniswap. It is much faster and less expensive than Uniswap.
You may wonder what the problem is with Uniswap-like exchanges. Let me tell you my story.
When I wanted to trade some tokens on Uniswap in the last few days, the gas fees for Ethereum were skyrocketing. I believe that the recent mainstream interest in cryptocurrencies has caused the ETH network to become extremely busy, resulting in extremely high gas fees.
But the issue is the crypto market's big whales. They don't care about gas prices, so they use ETH. But what if a person with a small amount of money came to trade? He couldn't afford such high gas prices.
So what’s the solution? To get the answer let’s learn about BakerySwap.
What is BakerySwap?
BakerySwap is a decentralized automated market-making protocol that is built on the Binance Smart Chain. It is an exchange just like Uniswap, it is the first AMM model build on Binance Smart Chain as a solution to Ethereum's high fee. BakerySwap was launched in September 2020.
And the token is a BEP-20 token.
If you remembered Bancor, this is just like that.
Before proceeding, let us first understand the AMM and the Binance Smart Chain (BSC); those who are already familiar with it can skip this section.
What is AMM?
AMM stands for Automated Market Maker and an automated market maker (AMM) is a trading system that uses automated trading to makes the exchange more liquid. Essentially, it computes the buying and selling prices using a predefined formula.
And If we talk about the Binance Smart Chain,
Binance smart chain (BSC) is a blockchain network built for running smart contract-based applications. Yes! Just like Ethereum and the BSC aims to allow the developers of the world to develop decentralized applications in its platform.
So, BakerySwap runs on the BSC and its token name is BAKE.
The token BAKE is part of the BakerySwap ecosystem and is used to reward Liquidity Providers. LPs (Liquidity Providers) can use this token to pay transaction fees or to vote in the BakerySwap governance process.
History of BakerySwap
There isn't much information available about BAKE, but it is said that it is made by a group of anonymous developers who believe in DAOs (decentralized autonomous organizations).
How BakerySwap works?
It is made up of various components, and to know its working we have to understand its components. So, let's go over them one by one.
1. Yield farming: Remember that when the bank lends you money, you repay it with interest. The concept of yield farming is the same, but you are the bank in this case. It is the method by which cryptocurrency holders earn rewards for their holdings. You can call it BakerySwap staking.
2. BakerySwap NFT supermarket: NFTs are not the same as cryptocurrency. They are digital assets, and they can be paintings, songs, videos, memes, or anything else. Their value depends on how rare they are and how important they are, and people are willing to pay millions of dollars for them.
3. BakerySwap Launchpad: It allows investors to invest in new cryptocurrency projects before the tokens are made public. Launchpads are typically run by cryptocurrency exchange or a separate project dedicated to that purpose.
All bake tokens will be distributed fairly among users, which means there will be no pre-sale or pre-mine in this and the charges they receive in between are 1%, which means that for every 100 BAKE, they will receive only 1 BAKE.
BAKE tokens will also be distributed to liquidity providers, allowing them to vote and use BAKE as trading fees.
BakerySwap Liquidity Pools
They have 8 pools in the initial set, and each token has a pair with BNB, which is the Binance utility token. When you stake your token in the respective pair, you'll get rewards in the form of BAKE. However, the number of pairs may now have more.
Let’s take a look at the initial 8 pools and their respective rewards.
BAKE-BNB, 10x BAKE rewards.
BUSD-BNB, 3x BAKE rewards
ETH-BNB, 1x BAKE rewards
BTC-BNB, 1x BAKE rewards
DOT-BNB, 1x BAKE rewards
LINK-BNB, 1x BAKE rewards
And when anyone trades on these pools, BakerSwap applies a 0.30% fee to all swaps in which 0.25% will go to all the liquidity providers of BakerySwap as rewards.
There is another kind of token that will be given to the liquidity providers called liquidity pools token BLP that represent their share of each pool. They can stake their Bakery Liquidity pool token to farm BAKE token rewards.
Where can I buy a BakerySwap coin?
If you want to buy BAKE, the top exchange to buy BakerySwap tokens is currently Binance, BiONE, HitBTC, ZT, and many more. You just have to search for exchanges and you'll get the results, or you can directly buy it from its websites. When I am writing this blog, the BakerySwap price BAKE is $2.77 USD and the current CoinMarketCap ranking is $131, with a live market cap of $536 million USD with a circulating supply of 193 million BAKE tokens.
Is BAKE a good investment?
BAKE's team was working around the clock to improve its decentralized exchange ecosystem. At the time of writing, it not only provides the service of swapping between various major cryptocurrencies such as ETH, BTC, DOT, LINK, but it is also expanding its infrastructure in the NFT market, which will increase their chances of growth. Lots of people compare BakerySwap vs PancakeSwap but they also should take in mind the number of transactions happening in both of them. Given the long-term goal, I believe it is a good investment.
What do you think about the BAKE token?
BakerySwap runs on the Binance Smart Chain, and when it first launched, it offered a massive 10x returns compared to other pools. The value of BAKE has increased significantly over that point in time. At the time of writing, it is ranging between 2 to 3 dollars and BakerySwap token is among the top 150 cryptocurrencies in the world according to coinmarketcap.
For getting higher returns, I think this is the best place to invest. But still don’t believe in BakerSwap price prediction, do your research before investing in any crypto.