Your Guide to BakerySwap
Author: Andrey Sergeenkov
TL;DR
BakerySwap is a DeFi protocol built on the Binance Smart Chain that offers tasty rewards. It works as a decentralized exchange (DEX) that adopts the automated market maker (AMM) model.
Stake and bake, create special NFT combos, get your own NFT pets, and more with the help of this guide!
Introduction
You’ve probably seen many food-themed projects in the DeFi space. All of these protocols share a similar characteristic: users provide liquidity and earn tokens in exchange.
Even though most people may associate DeFi with the Ethereum blockchain, more and more projects are being launched on the Binance Smart Chain (BSC) due to its cheaper fees and faster confirmation time.
In this article, we will take a look at BakerySwap – a decentralized exchange built on the Binance Smart Chain.
What is BakerySwap?
BakerySwap is a decentralized exchange adopting the automated market maker (AMM) model most people know through Uniswap.
The BakerySwap exchange
BakerySwap is one of the first projects to leverage BSC to build an AMM DEX. It is also one of the few DeFi projects on the Binance Smart Chain to offer altcoin liquidity pools.
Similar to other platforms using the AMM model, there is no order book to match buyers and sellers. Instead, users trade against a liquidity pool. The assets in each pool are provided by supporters and users of BakerySwap.
Users who add liquidity to these pools receive liquidity provider (LP) tokens in exchange, according to their share of the pool. They can then convert these LP tokens back to the original tokens they supplied. The amount received also depends on their share of the pool. In exchange for providing liquidity, they earn trading fees.
Farming BAKE
As one would expect from a platform called BakerySwap, the native token is called BAKE. How can you get it? Well, you can farm it by staking BAKE or by providing liquidity to one of the pools, and then staking your liquidity pool tokens (BLP).
For example, if you provide liquidity to the DOT-BNB pool, you’ll receive DOT-BNB BLP tokens. You can then stake these BLP tokens to farm BAKE. If you simply want to buy BAKE on the open market instead of farming it, that’s also possible. Let’s dive deeper.
BakerySwap liquidity pools
On BakerySwap, stakers of the BAKE token can explore bakery-themed menus. If you select Bread, you can stake BAKE to earn more BAKE. Alternatively, you can stake the corresponding BLP tokens into the pools of baked goods, such as Doughnut, Waffle, Rolls, Croissant, and so forth. Note that the potential ROI is different for each option.
Are you getting hungry yet?
As of November 2020, the supported BEP20 liquidity pools are:
- Bread: Stake BAKE to earn BAKE
- Doughnut: Stake BAKE-BNB BLP to earn BAKE
- Waffle: Stake BAKE-BUSD BLP to earn BAKE
- Rolls: Stake BUSD-BNB BLP to earn BAKE
- Croissant: Stake BAKE-DOT BLP to earn BAKE
- Latte: Stake USDT-BUSD BLP to earn BAKE
- Toast: Stake ETH-BNB BLP to earn BAKE
- Cake: Stake BTC-BNB BLP to earn BAKE
Using BakerySwap
Once you visit the BakerySwap website, you will need to connect an eligible wallet to unlock all the features. We recommend using MetaMask or WalletConnect. Yes, MetaMask is an Ethereum wallet, but it can support the Binance Smart Chain and its DApps with ease.
If you choose to use MetaMask, we suggest you check out the How to Use MetaMask guide, then follow the steps here to hook it up with Binance Smart Chain.
Once everything is set up, you can unlock the wallet to reveal extra information on the website.
The BakerySwap dashboard.
Adding liquidity
The process of adding liquidity to BakerySwap is not that different from Uniswap or similar platforms. You first need to add liquidity to the DEX and supply both tokens to partake in that specific liquidity pool. Once liquidity is provided, you will be able to begin farming BAKE.
To add liquidity, click on Exchange at the top menu and select the Pool tab. Next, click the button “Add Liquidity.”
Adding liquidity to BakerySwap.
Next, select the token pair you want to provide liquidity for. In this example, we have selected BNB and BAKE, so we will receive BAKE-BNB BLP tokens in return.
Choose the token pair to provide liquidity for.
Once you have received your BLP tokens, you should navigate to "Earning" and select the option matching your BLP tokens. In this example, we will select Doughnut.
Staking BAKE-BNB BLP tokens to earn BAKE.
Enter the amount of tokens you want to stake and confirm the transaction. Once completed, it is safe to browse away from the page. You can check back at any time to see how much BAKE you earned. The earned BAKE is automatically collected when you stake or unstake BLP tokens. You can also collect manually by clicking the Harvest button.
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Other features
So, we’ve talked about the core functionality that BakerySwap has to offer. But that’s not the whole picture! There are other, more unique features you can also try.
One of these is the NFT Supermarket where, you guessed it, you can get your hands on non-fungible tokens. You can think of these as your unique, digital pets on the blockchain.
Another unique feature is the BakerySwap Launchpad. It’s a place where you can get access to newly launched projects on BSC. However, in contrast to Binance Launchpad, these aren’t “regular” tokens, they are NFTs!
The first Initial Dex Offering (IDO) was for Battle Pets, a blockchain-based pet battle game where players can breed, exchange, and battle NFT pets on the Binance Smart Chain. Stay tuned for more projects in the future!
The BakerySwap NFT Combo pool
BakerySwap also allows you to mint special meals called NFT Combos. These require you to lock up BAKE and also involve a touch of randomness. The more BAKE you commit, the higher tier NFT Combo you are eligible to create. These grant you more and more Staking Power so you can earn even more BAKE while farming with your BLP tokens. You can find a guide for creating your NFT Combos here.
You can decompose them at any time and earn back 90% of the BAKE that you locked to create them. At the time of writing, though, all NFT Combos have been sold out. It seems honest bakers are adding them to their baking arsenal quite quickly.
The Bakery Combo dashboard.
There are four kinds of NFT Combos, each requiring a different amount of BAKE.
- Basic: 10,000–20,000 BAKE
- Regular: 20,000–50,000 BAKE
- Luxury: 50,000–100,000 BAKE
- Supreme: Above 100,000 BAKE
Remember, the Staking Power you get for each is unique. It’s based on the amount of BAKE you have committed and a random multiplier. So, the more BAKE you lock in, the higher its potential Staking Power will be.
Is BakerySwap safe?
So far, there have been no reported issues with BakerySwap. An audit of the BakerySwap smart contract has been performed, and the report can be found here.
However, depositing funds into a smart contract is always risky, as there may be bugs that did not get attention during the audit. Never deposit money you cannot afford to lose.
Closing thoughts
BakerySwap is an all-around DeFi ecosystem on the Binance Smart Chain. The team behind BakerySwap is confident their service is fast, cheap, and, perhaps most importantly, tasty!
Whether it’s exchanging BEP-20 tokens, earning passive income by staking BAKE or creating special NFT Combos, you have a lot of options with BakerySwap.
Still got more questions about BakerySwap and crypto? Check out our Q&A platform, Ask Academy, where the Binance community will answer your questions.