Burger——A Decentralized AMM Protocol on Binance Smart Chain with Incentivized Governance
- BurgerSwap is a decentralized automated market-making (AMM) on Binance Smart Chain.
- The BURGER token is the native BEP-20 governance token of the platform. Users can earn BURGER tokens by providing liquidity on BurgerSwap.
- BurgerSwap applies a 0.30% fee to all trades. These fees will be collected and distributed to users who stake their BURGER tokens and participate in governance voting.
- The BurgerSwap bridge allows users and projects to convert any ERC-20 token to a wrapped bToken issued on Binance Smart Chain, which then can be listed on BurgerSwap to trade and provide liquidity.
1. What is BurgerSwap?
BurgerSwap is a decentralized automated market maker (AMM) on Binance Smart Chain. Compared with most DeFi projects (such as SushiSwap), they don't really care about the community and governance. Due to its transparency issues, this has caused a great loss of confidence in DeFi projects. As the project party said: "Sushi is seen as food for the elite, Burgers are for everyone." Binance Smart Chain's idea of creating burgers makes DeFi available to everyone. BurgerSwap was created for the community, and its growth will be highly dependent on the community. BurgerSwap emphasizes the concept of "democratic decentralized transactions", which means that governance is not optional, but mandatory. Users make rules! BurgerSwap users can actually vote to change the parameters of the exchange, including transaction fees, bet rewards, mining speed, etc. In addition, users can only get betting rewards if they participate in voting!
2. How burger works?
The BURGER token is the native BEP-20 governance token of the platform. The maximum supply is up to 21,000,000 BURGER coins and it has a circulating supply of 11.631.387 BURGER coins. BURGER tokens can only be mined by providing liquidity. Every block produces 40 Burger tokens, user’s share is based on liquidity provided. The number of tokens produced per block can be changed by the community through voting. But there is a range created to keep a healthy state of the protocol, meaning the upper limit is set at 120 BURGER per block and the lower limit is set at 1 BURGER per block.
To be able to trade a certain BNB pair, the corresponding BURGER pair needs to have at least 1% of the liquidity relative to the BNB pair. If this minimum liquidity is not met, you need to provide liquidity to the BURGER pair in order to be able to trade. Again, this can be changed by voting.
Users can add any pair by providing liquidity, just like on Uniswap, but only BNB and BURGER pairs will be able to mine BURGER tokens. Other pairs can exist on the exchange, but will have no BURGER rewards. To bootstrap liquidity of the BURGER token, the BNB/BURGER pair will have double rewards.
3. How to get the rewards (Burger)?
Mining rewards (Burgers) for liquidity providers
As BurgerSwap is built on Binance Smart Chain, all tokens will have BNB pairs. In addition, each asset is also required to have a BURGER pair, which needs to account for at least 1% of the liquidity of the concerning asset to be eligible for mining rewards.
Of course, users can vote to change this. The ratio is set at 1% by default, with 0.2% lower limit and 5% upper limit.
Transaction fees are set at 0.3% on day one. All transaction fees are converted to BURGER and are sent to the governance pool. To be eligible to claim the share of transaction fees, need to:
- Stake BURGER tokens, and
- Participate in voting (once a week)
The 0.3% transaction fee will automatically be swapped to BURGER tokens and transferred into the governance contract. When a new proposal is created, the total balance of BURGER tokens will be transferred into the created proposal contract, and all users who participate in the voting of this proposal will share in the reward pool after the proposal ends.
In addition, BurgerSwap has a burning mechanism that destroys a percentage of BURGER acquired from the trading fees.
In summary, the reward allocation rates are:
- 40% of the rewards are allocated to liquidity providers on the platform.
- 30% of the rewards are allocated to participants in governance/voting.
- 30% of the rewards are burned forever.
The rates are subject to change as new users make and vote for new proposals.