BakerySwap is a DeFi platform that allows users to do a wide variety of activities using a single interface. The platform allows the users to exchange tokens, provide liquidity, and farm. Not only this, it allows the users to mint NFTs and has its own NFT marketplace. The platform is based on Binance Smart Chain.
BakerySwap is based on the AMM (automated market maker) model that means trading is done against liquidity pools instead of the order book. The liquidity of the pool is maintained by users who deposit funds into the pool, and in return, they receive BakerySwap Liquidity Pool (BLP) tokens. Along with BLP, the depositors also receive 0.25% of the trading fee of all the transactions that are done against their liquidity pool.
BakerySwap is the first-ever AMM on the Binance Smart Chain that offers liquidity pools with other tokens such as LINK, DOT, etc. The platform is powered by its native BAKE token. BAKE holders can participate in protocol governance activities.
We will explain all the above-mentioned processes in detail in a two-part series. In this article, we will explore how you can swap your BEP-20 tokens, add/remove liquidity in the pools, and earn rewards.
BakerySwap mainly supports the following major features:
- Trade (Exchange and Liquidity): Exchange your tokens here and provide liquidity into the liquidity pool.
- Earning: Stake your BAKE token, or liquidity pool token, here to earn more rewards.
- NFT Marketplace: NFT marketplace for creative artists and users.
- Bakery Gallery: Exclusive artwork by verified NFT artists that users can access.
- Launchpad: IDO platform.
- Gamification: NFT game projects.
- ETH 2.0: BakerySwap’s ETH staking program to offer high liquidity and benefit at a low cost.
To use the BakerySwap platform, go to their website.
Users are required to connect their wallets to access the platform.
Click on the Connect to a wallet button appearing at the top of the page.
BakerySwap allows the users to connect with any of the following wallets:
- Binance Chain Wallet
Use any of the above-mentioned wallets to connect with the platform. We are connecting with our MetaMask wallet.
Also, note that the user is required to have a Binance Smart Chain network setup in the MetaMask wallet to connect with the BakerySwap application.
In case you do not have the Binance Smart Chain network setup, then you can create and set up a network by going to the Setting-> Network. You then click on Add Network and fill in the following details.
We have connected our MetaMask wallet with the network selected as Binance Smart Chain.
In this article, we will focus on the Swap and Pool features.
Under the Trade section, you will find an option for Exchange and Liquidity.
Go to the Exchange tab if you wish to swap your BEP-20 tokens here. The swapping activity is supported by the liquidity pool.
To swap, just select the input and the output tokens and enter the amount of the input token. The resultant output token will be automatically calculated.
Confirm the process by clicking on the Swap button.
The platform charges a 0.30% fee for all the swap activities, out of which 0.25% goes to liquidity providers (LPs).
Add Token in MetaMask
To see the newly swapped BAKE token in the MetaMask wallet, users are required to add the token by giving the contract address of the token in the Custom Token tab.
BAKE Contract Address – 0xE02dF9e3e622DeBdD69fb838bB799E3F168902c5
See the below screenshot and add the token address. You can now see the BAKE token in your wallet.
Users can provide liquidity into BakerySwap’s liquidity pools. In return, they receive the BakerySwap liquidity pool (BLP) token that represents their share in the pool. Liquidity providers receive a reward of 0.25% of the trading fee that is done against their pool.
To add liquidity, go to the Liquidity tab and click on Add Liquidity. You are required to select the token pair. We have some BNB and BAKE tokens in our wallet that we will use for adding liquidity into the pool.
Note that users are required to pay an equal amount of both the tokens that they wish to add to the pool.
Select your token pair. Enter the value against one token and the value of the other token will automatically get displayed.
Approve the token first if you are using the token pair for the first time before adding it to the liquidity pool.
Now confirm the Supply. This will trigger a MetaMask transaction.
Once the transaction is successful, you will become a liquidity provider in the selected pool and will start earning from the liquidity fee for every transaction in that liquidity pool.
You can check your liquidity details now.
You can also check the BNB-BAKE LP token in your MetaMask wallet.
At any time, users can remove their liquidity (partially or completely) from the BakerySwap liquidity pool and free their tokens. They will receive their tokens along with the fee that they have earned for the period their tokens were there in the pool.
To remove your existing Liquidity, click on the Remove button in the Liquidity section. Now, enter the percentage of liquidity you wish to withdraw and confirm the process.
Once the transaction is successful, you can see your BLP token balance will become zero, and the token pair reverts back to your MetaMask wallet.
In the next part of this article, we will describe how you can use your BLP tokens to earn more rewards.
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