An algorithmic stablecoin protocol on Binance
JaguarSwap, a stablecoin yield farming market maker protocol on Binance Smart Chain, is moving up the ranks this week. Its user numbers and transaction volume swelled to new levels propelling it up the DappRadar Rankings. They announced their $30 million total value locked (TVL) on Twitter and achieved this just since officially launching.
In the last 7 days, the number of active wallets interacting with the platform has grown to almost 14,000. These user wallets are responsible for 162,000 transactions, generating over $41 million in transaction volume. Interestingly we see that the average transaction has a value of around $250, which shows a more reserved approach to depositing. In comparison, PancakeSwap currently has an average transaction of around $1100 over the past 7 days. That’s four times higher!
On the 1st of May, the platform did a promotional airdrop delivering 0.1 JAGUAR to 100 random participants which stimulated a lot of social chatter and excitement. Farming options became available from the 3rd of May and within just a few hours the platform had locked in over $3 million to its smart contracts. In a week where we have observed PantherSwap and Pandaswap launch on Binance Smart Chain, it is vital to investigate what sets these platforms apart from one another – other than the token animal representing the brand.
One immediate difference is that JaguarSwaps farming and staking options currently utilize mostly USD pegged stablecoins such as BUSD, USDT, and DAI. Seemingly to battle inflation. The platform also employs a buyback burning mechanism originally introduced by Goose Finance. This means the issuer buys back and destroys previously issued tokens from the secondary market. This reduces supply and will therefore increase the token price. At the time of writing the protocol has just completed its 21st Burn and the token price of JAGUAR is currently $65 having increased almost 56% in the last 24 hours.
JaguarSwap has implemented several unique features in its yield farm to fight against the inflation problem faced by most yield farms. Moreover, unlike other deflationary yield farms that keep issuing new tokens, JaguarSwap doesn’t plan to develop layered farming after launch.
The initial emission rate is 1 JAGUAR per block. And the emission rate will be reduced by 3% every 9,600 blocks or approximately every 12 hours until it reaches 0.1 JAGUAR per block.
Unlike other yield farms where developers manually reduce emission rates according to their own wishes, JaguarSwaps emission rate reduction logic is coded in the smart contract and will be executed every 12 hours.
Alternative exchanges and DeFi protocols are really shining right now as Ethereum continues to struggle with high gas prices. The Binance Smart Chain DeFi ecosystem is growing every day with new dapps ready to offer lower cost, faster services than its competitors. Polygon is also getting in on the action lately with Polywhale Finance, QuickSwap, and Aave all having impressive debuts on the Ethereum layer-2 platform. The battle for DeFi supremacy is just getting started.