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What is BakerySwap and How Does it Work

Posted by
Ian Kane

DeFi and NFTs together in one bakery

BakerySwap is an automated market maker and the first curated NFT marketplace on Binance Smart Chain (BSC). It is one of several protocols attempting to combine the popular features of decentralized finance (DeFi) and non-fungible tokens (NFTs) into an easy-to-use platform. The BSC dapp offers a range of DeFi services, along with a launchpad and a non-fungible token or NFT supermarket. Additionally, by providing liquidity to the BakerySwap protocol, users earn BAKE rewards from trading fees.

That’s a whole lot of information to swallow. In essence BakerySwap offers a wide range of DeFi services, allowing users to put their tokens to use. In addition the platform has a curated and an open marketplace for NFTs. BAKE is the native token that users can earn by providing liquidity, and they then can use to acquire NFTs.

What’s in the oven

At its core is the BakerySwap exchange. One of the first automated market maker (AMM) models built on Binance Smart Chain (BSC). AMMs facilitate token swaps using smart contracts, rather than order books allowing users to swap tokens without a middleman.

The exchange is presented in a familiar way as the leading Ethereum decentralized exchange Uniswap. However, all token pairs on the BakerySwap exchange use the Binance Coin (BNB) as the common base asset. You can learn about transferring your tokens to Binance Smart Chain here

How to earn on BakerySwap

There are three ways to earn with BakerySwap. Firstly, users can provide liquidity to one of the BakerySwap pools to earn fees and BakerySwap liquidity pool (BLP) tokens. These tokens represent the percentage of a user’s pool contribution. Secondly, users can stake their BLP tokens for more BAKE, or other tokens. 

There are two types of pools; pools with BAKE rewards and pools without BAKE rewards. Users can earn extra BAKE tokens through multiplier pools. The highest multiplier pools are referred to as the ‘Doughnut’ and ‘Waffle’ pools, which represent BNB and BUSD. 

In addition to liquidity provision and token farming, users can also stake their BAKE tokens to earn more BAKE. This is done so in the ‘Bread’ pool, and there is no minimum requirement or lock-up period.

Staking for NFTs

One of the most interesting parts of BakerySwap is the ability for users to stake their BAKE to earn non-fungible tokens (NFTs). These can then be sold on, should the user choose to for BAKE tokens in the NFT supermarket. However, because users have custody of the private keys to the NFT, they can sell them on other NFT marketplaces.

BakerySwap’s NFT supermarket offers a selection of NFTs including the Binance NFTs, ‘Musk & DOGE’, ‘BTC Artwork’, and ‘Battle’ categories, ranging from abstract artwork to digital puppies. 

In 2021 BakerySwap launched the Bakery Gallery. A new curated platform aiming to compete with top Ethereum platforms. The gallery will focus on giving exposure to BakerySwap featured artists, and attracting more talent to BSC via organizing exclusive NFT drops.

BakerySwap additionally features a crypto launchpad that also launches new NFT projects. The initial dex offering (IDO) has become a common token distribution model in 2021. Launchpad tokens are purchased using the Binance Stablecoin (BUSD) and all BAKE token holders are eligible to participate. 

Summary

The BakerySwap platform appears to be a hybrid combination of Burger Swap, PancakeSwap, and Uniswap. BakerySwap offers yield farming, a crypto launchpad, and non-fungible token investment opportunities, all on one platform and is one of the many ways you can earn a passive income with DeFi

During times of high gas fees and slower transactions on Ethereum, Binance Smart Chain has found an audience. They are significantly lowering the barrier for entry to DeFi and making it easy for developers to get a project into production. 

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