BurgerSwap is a new Automated Market Maker (AMM) on Binance Smart Chain.
This new project is based on the premise that Uniswap (the most famous decentralized AMM) has revolutionized decentralized finance and automated market making, even surpassing Coinbase in early September in terms of daily trading volume.
Uniswap's success has led to the emergence of other similar projects, including the much-talked about Sushiswap.
To distinguish it from the more famous Uniswap knockoff, this new project replaces sushi with burger in its name, becoming Burgerswap. But the main difference, of course, is another.
In fact, both Uniswap and Sushiswap are smart contract-based protocols on the Ethereum blockchain, and the related UNI and SUSHI tokens are ERC-20 tokens.
Recently, also thanks to the success of similar protocols, gas rates on Ethereum have risen a lot, which makes ordinary trading almost impossible, or at least not convenient.
This problem is not only not being solved in the short term, but it could even get worse in the coming weeks or months.
Furthermore, the creators of Burgerswap argue that the Sushiswap case that challenged Uniswap has caused a loss of investor confidence in DeFi projects, in part because they claim that similar projects don't care about community and governance.
In particular, they argue that Sushi has incentives for liquidity providers and wagering rewards that are too high, due to the undemocratic way of creating the protocol.
"So while sushi is seen as food for the elite, hamburgers are for everyone, right?"
So the idea behind this new protocol is make DeFi accessible to everyone. BurgerSwap was created for the community as a “democratized decentralized exchange”, where the governance is not optional but mandatory, and the rules are made by the users.
That's why BurgerSwap users will be able to vote to change all the parameters of the exchange, including trading fees, wagering prizes, withdrawal speed, etc.
To encourage users to participate in governance, only those who participate in the vote at least once a week will receive participation rewards.
BurgerSwap chooses Binance
To overcome the problems caused by congestion on the Ethereum network, BurgerSwap is based on Binance Smart Chain, and all tokens will have pairs in BNB. Each asset must also have a pair in BURGER, the protocol's governance token, and must represent at least 1% of the asset's liquidity in order to benefit from the rewards.
This ratio is set to 1% by default, with a lower limit of 0.2% and an upper limit of 5%, and in the future users will also be able to vote to change these parameters.
Transaction fees are initially set at 0.3%, and all are converted to BURGER and sent to the governing group.
10% will be sent to the team account.
BURGER tokens can only be mined by providing liquidity, and each block, every approximately 3 seconds, produces 40 BURGER tokens. There is no pre-mine or sharing of the token with the developers, and the chef “Burger King” will not be able to liquidate significant shares to the detriment of the other owners.
Another original feature is that no LP tokens available, so there is no risk of liquidity migrating to other protocols.
BurgerSwap is the first Uniswap-like app to be launched on Binance Smart Chain, enabling fast and cheap trading.
Furthermore, this blockchain operates on a environment compatible with the Ethereum Virtual Machine, allowing Solidity developers to develop for the new ecosystem without any particular problem.