The popularity of decentralized finance and NFT’s have skyrocketed in the previous years. Ethereum has been the preferred platform for developing DeFi and NFT projects. Popular DEXs like UniSwap and SushiSwap are based on the Ethereum blockchain. But the abundance of such projects on the blockchain has stagnated the transaction speeds and taken the gas fees to all-time highs. This turned users to alternatives like PancakeSwap and BakerySwap on the Binance Smart Chain. These platforms provide similar functionalities with faster transaction speeds and lower fees. Here is a complete beginner’s guide to BakerySwap and BAKE tokens.
What is BakerySwap?
BakerySwap is an open-source DeFi protocol that runs on the Binance Smart Chain. It is the first such project on BSC. BakerySwap can be used to swap and exchange tokens. BakerySwap DEX uses the Automated Market Maker model for liquidity similar to the one used by Uniswap. There are no order books to match buyers and sellers. Liquidity pools are used and you can earn by becoming a liquidity provider. Additionally, you can also get involved in DeFi yield farming and staking to earn additional rewards.
The difference between other DEXs and BakerySwap is that it operates on the Binance Smart Chain other than the Ethereum network and trades BEP 20 tokens instead of ERC tokens. The Ethereum network is extremely crowded, which reduces the transaction speeds and shoots up the gas fees. Users are constantly looking for new ways to minimize the fees they need to pay on blockchain applications. An easy way to do that is to use applications that run on the Binance Smart Chain which is faster and charges fewer fees compared to Ethereum.
How to use BakerySwap?
To use all the features of BakerySwap, you have to connect your wallet to the platform. MetaMask or WalletConnect are the best choices. Even though MetaMask is an Ethereum wallet, it also supports BEP 20 tokens. Now you can proceed to add liquidity to BakerySwap. It is a similar process to that in Uniswap and other similar platforms. You have to contribute liquidity to the exchange and provide the tokens to participate in the liquidity pool. BakerySwap’s liquidity pools are named Bread, Doughnut, Waffle, Croissant, Latte, Rolls, etc thematically. Users can stake BAKE, BNB, BUSD, DOT, USDT, ETH, BTC, etc to earn BAKE tokens. After liquidity is implemented, you can start farming BAKE. To add liquidity to BakerySwap, select the Exchange option at the menu on the title bar and select the Pool option. After that, click on the “Add Liquidity” button.
Now you can choose the token pair to contribute liquidity for. BakerySwap provides BAKE-BNB BLP, BAKE-BUSD BLP, BUSD-BNB BLP, BAKE-DOT BLP, USDT-BUSD BLP, ETH-BNB BLP, and BTC-BNB BLP token pairs. Once you have got the BLP tokens, go to the “Earning” section and choose the option meeting your BLP tokens.
Then enter the number of tokens to be staked and approve the transaction. You can anytime have a look to check the BAKE you earned. It can be collected automatically or manually by clicking the “harvest” button.
We have taken a look at the fundamentals of the BakerySwap DeFi protocol. But there are many other interesting functionalities which the platform has to offer. There is an NFT supermarket in which you can acquire non-fungible tokens. There is also a BakerySwap Launchpad where you can access newly launched projects on the Binance Smart Chain. All the tokens on this platform are NFTs. BakerySwap also supports Initial Dex Offerings. The first one on the platform was for Battle Pets. It is a pet battle game in which players breed, trade, and battle pets that are tokenized using NFTs. It is similar to Crypto Kitties, the viral NFT cat collecting and breeding game on the Ethereum blockchain.
The BAKE token is the native token of the BakerySwap ecosystem. The liquidity providers in the Automated Market Maker model of the platform are rewarded with BAKE tokens. These can be used to obtain a percentage of the trading fees of BakerySwap and participate in the voting for the platform’s governance. The token is priced at $2.05 and has a total market cap of $395,342,426 at the time of writing. It is ranked #156 on Coinmarketcap.
Know More About: A Complete Guide To DeFi Yield Farming Development
BakerySwap is a comprehensive DeFi platform that runs on the Binance Smart Chain. Their services are faster and cheaper compared to most similar DeFi protocols. Users can exchange BEP-20 tokens, earn passive income by staking BAKE tokens or develop unique NFT Combos, using BakerySwap. Use our complete beginner’s guide to BakerySwap and BAKE tokens to navigate your way through this interesting platform.
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