In recent years, decentralized finance (DeFi) has seen unprecedented growth with over $1 billion locked in DeFi markets. One platform dominating the DeFi sector is BurgerSwap-an open-source automated market maker (AMM) running on the Binance Smart Chain (BSC). So much has BurgerSwap taken the DeFi sector by storm that it coincided with a sudden 22% increase in Binance BNB tokens.
And with the launch of BurgerSwap protocol, there has been a sharp increase in transactions on the Binance Smart Chain. What can users expect from the promising project as is? Here’s an in-depth look at this revolutionary platform.
BurgerSwap is an open-sourced, democratized automated market maker. Developers launched the project intending to decouple the interest generation and productivity providers within the market. Notably, this platform resides on the Binance Smart Chain. Intrinsically it enjoys access to a spread of outstanding features.
Following along the lines of SushiSwap, in terms of names, developers prefer to persist with another crowd favorite – burgers. Developers built BurgerSwap as a replacement for the SushiSwap project. Discussing their improvements, the team spoke on their approach to the market and how it differs from SushiSwap.
How is BurgerSwap Beneficial?
One of the most drawbacks of the many DeFi projects currently within the market is its reward distribution mechanism. This mechanism resides inside a sensible contract that automates the processes. However, the current market standard leaves investors guessing on their exact rewards. BurgerSwap introduces a replacement implementation of the ERC-2917 token standard to ease these concerns.
ERC-2917 enhances of Uniswap. To accomplish this task, the protocol alters both the motivation model and community governance systems of the network. Additionally, the BurgerSwap protocol abstracts the interest generation process interface, which further streamlines the whole process. Specifically, the update makes it much easier for wallet applications to gather vital DeFi metrics.
The BurgerSwap platform utilizes proprietary coding to supply users with a far better UX compared to SushiSwap. This advanced coding was built from the bottom up and isn’t a replica or copy of other platforms within the market currently. Additionally, the coding for BurgerSwap is open-sourced. Open-source projects are much more secure because they permit the community to check the merits of the code.
Binance Smart Chain
BurgerSwap may be a democratized exchange that resides on the Binance Smart Chain. Binance Smart Chain enables fast, cheap, and secure payments globally. Additionally, the platform is EVM compatible. Today, there are multiple assets listed in its BEP-20 format, with more entering the market weekly.
The main advantage of the choice to launch on Binance Smart Chain is convenience. For instance, all tokens have BNB pairs, and each asset also will feature an immediate BURGER pair. Importantly, this pair must account for a minimum of 1% of the asset’s liquidity to be eligible for mining rewards from the platform.
Advantages of BurgerSwap on BSC
There are several advantages of the presence of BurgerSwap on the BSC. Below are some of the benefits.
Enhanced Transactions with Low Fees
Binance Smart Chain is a scalable network thus can support 3-second transaction speeds. Ethereum blockchain has raised transaction fees (gas fees), making users dig deeper into their pockets. By leveraging the power of BSC, BurgerSwap enhances transaction speeds without improving transaction fees.
BurgerSwap recently enhanced the UI for a better user experience. The platform has enabled the swap of BSC and ETH based tokens through the BEP20bridge. Wrapped bTokens converted from ERC-20 tokens can attain listings, trade, and contribute to the platform’s liquidity.
Improved UI empowers users to trade BEP assets in a decentralized and democratic way. The platform seeks to enhance its UI even further by calling on community members interested in joining designers and smart contract dev teams to send their applications at twitter.com/burger_swap.
BurgerSwap V2 emphasizes on community and governance to bring more users, traders, and liquidity to DeFi. The platform’s BURGER token is the first fully community governed token with no maximum supply. Each block produces 40 Burger tokens, with users getting a share of the rewards relative to the liquidity they provide.
Users can add any pair by providing liquidity, but only BNB and BURGER pairs can mine BURGER tokens. Unlike SushiSwap, users on BurgerSwap can vote to change the platform’s parameters such as trading fees, staking rewards, and mining speed. Of course, even the reward allocations for LPs and participants in voting can also be changed by voting.
BurgerSawp’s community governance has been a success, with numerous proposals already created and executed since launch. Currently, 2 million staked BURGER tokens are pledged per vote. The project now seeks to improve its governance system to ensure its sustainability and enhance voting and access to liquidity.
Their dev team is currently working to integrate more DeFi functionalities to the protocol to build a comprehensive DeFi experience on BSC. BurgerSwap is also looking to cap the maximum supply of BURGER tokens to determine the project’s long-term value. Currently, BurgerSwap has an upper limit set at 120 BURGER per block and the lower limit of 1 BURGER. Users can vote on the number of tokens produced per block, but the amount needs to stay within the set range to maintain a healthy state of the protocol.
Improved Asset Control
BurgerSwap offers liquidity providers more control over their assets by enabling them to choose the currency they would love to receive their rewards. Liquidity providers can either accept their rewards in either BNB, BURGER, or USDT. The platform has also launched a new default distribution setting for staked rewards.
Under the new reward system, 40% of the rewards is allocated to liquidity providers on the platform, while 30% of the rewards will go to governance/voting participants. The remaining 30% of rewards are burned forever. This feature allows liquidity providers to redeem their rewards easily, creating instant liquidity without the need of redeeming liquidity.
While the precise details of everyone on the BurgerSwap project team are still shrouded in mystery, some details emerged recently. For one, the whole development is self-funded. As such, everyone that works on the project receives no salary for his or her efforts. Also, developers announced they need no intention of conducting any ICOs for the project; also, the sole compensation the team receives is 10% of all the fees.
BurgerSwap is a revolutionary platform in the DeFi sector. The platform is built on the Binance Smart Chain (BSC), presenting users with numerous advantages, including faster transactions, lower fees, upgraded UI, and improved governance encompassing real democracy. Enhanced governance, coupled with improved asset control for liquidity providers, enhances user experience pushing the DeFi sector to higher levels.