Tag: Automated Market Maker



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The decentralized finance (DeFi) landscape boasts a range of decentralized applications (dApps), automated market makers (AMMs), and decentralized exchanges (DEXs). Many DeFi protocols rely on the automated market maker model, which is now an essential tool for many crypto traders. Instead of the traditional order book model used by centralized exchanges (CEXs), an AMM uses liquidity pools, liquidity providers, and smart contracts. Also, AMMs facilitate non-custodial token swaps and offer users the chance to earn trading fees by becoming a liquidity provider (LP). However, this does come with risks, such as impermanent loss. However, there are now several blockchains that host a variety of different automated market maker platforms. But, what are automated market makers (AMMs)?

BakerySwap is a next-generation automated market maker (AMM) and decentralized exchange (DEX) on Binance Smart Chain (BSC). Powered by the native BakerySwap token (BAKE), BakerySwap is one of several new protocols to combine many popular features into a single, easy-to-use platform. By providing liquidity to the BakerySwap protocol, users earn BAKE rewards from trading fees. Also, BAKE can be used to vote in protocol governance proposals. BakerySwap is a multi-functional crypto hub that offers a range of decentralized finance (DeFi) services, along with a crypto launchpad and non-fungible token (NFT) supermarket.

Spartan Protocol is a community-driven automated market maker (AMM) that facilitates synthetic asset creation, incentivized liquidity, and asset swaps. One of many recent features of the ever-expanding Binance Smart Chain (BSC) and Binance ecosystem, Spartan Protocol uses the native SPARTA token as a common base asset across the platform. Furthermore, the SPARTA token creates an internal pricing system, meaning the project can operate without the use of external oracles.

In recent weeks, we have witnessed a huge surge in the participation and total value locked (TVL) in decentralized finance (DeFi). In particular, projects within the Binance ecosystem have seen a massive spike in users and popularity. Launched on Binance Smart Chain (BSC) in September 2020, BurgerSwap is a democratized automated market maker (AMM) built on Binance Smart Chain (BSC) with Binance Smart Chain MetaMask utility. It has since become a popular decentralized exchange (DEX) for cross-chain token swaps. Users of the BurgerSwap platform can swap between BEP-20 and ERC-20 tokens without friction. Also, the BURGER token allows users to participate in governance and earn BurgerSwap token (BURGER) mining rewards! Furthermore, this is achieved in a way that is familiar to users of popular DEXs such as Uniswap.

PancakeSwap has seen a lot of interest in recent weeks. Essentially a clone of Uniswap, PancakeSwap provides a very similar user experience to Uniswap. However, with rising Ethereum transaction fees and network congestion, a serious automated market maker (AMM) competitor was bound to emerge. There have been several attempts to copy the #1 AMM on Ethereum. However, the first-mover advantage and strong fundamentals have kept Uniswap in the spotlight for several months. Until recently, that is, when PancakeSwap rose to prominence seemingly overnight. The space has seen a huge wave of adoption and trading volume galvanized by the Binance Smart Chain community. But, how do PancakeSwap vs Uniswap stack up against each other?

The Bancor Network is one of the longest-standing cryptocurrency projects, and among the first to pioneer decentralized financial applications (dApps) and token swaps. Despite a heavily-publicized attack and various legal hurdles throughout its infancy, the Bancor Protocol is emerging as a stand-out platform. Bancor shows great potential, thanks to recent upgrades and services to the network and the higher utility of the BNT token.