BurgerSwap is a decentralized Automated Market Maker on Binance Smart Chain. It is a platform for the community that requires a high degree of community governance to thrive.
BurgerSwap has been developed based on the DEMAX decentralized finance platform built on Binance Smart Chain, enabling a swapping mechanism with democratic decentralized mechanics which allows changing parameters by the community through transparent voting.
With BurgerSwap, it could become possible for any user to create proposals to adjust transaction fees, block rewards, and other system parameters of the exchange, and any user staking BURGER tokens can vote to pass or reject a proposal.
The BurgerSwap decentralized governance system cannot be managed and controlled by any centralized entity. Users are said to be rewarded with BURGER tokens as long as they create liquidity, stake, and vote in the governance system.
BurgerSwap is created for the community and its growth will be highly dependent on the community, by default.
BurgerSwap emphasizes the concept of a “democratized decentralized exchange”, which means that governance is not optional but mandatory. The users make the rules.
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.
Transaction fees are set at 0.3% on day one. All transaction fees are converted to BURGER and are sent to the governance pool. For users to be eligible to claim their share of transaction fees, they must:
- Stake BURGER tokens,
- 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.
The BURGER token started out with an infinite supply. However, after listening carefully and talking to the community members BurgerSwap decided to cap the maximum supply to 21,000,000 BURGER.
BURGER tokens can only be mined by providing liquidity. Every block produces 40 Burger tokens, users share is based on liquidity they are providing.
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, users need to provide liquidity to the BURGER pair in order to be able to trade. Again, this can be changed by voting.
The BURGER token is the native BEP-20 Governance Token of the platform. Users can earn BURGER tokens by providing liquidity on BurgerSwap. 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.
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.
Binance Smart Chain over Ethereum
- Speed and trading fees: while Ethereum Gas prices have soared to absurd heights, dragging transaction speed to unacceptable levels, Binance Smart Chain applies fixed ultra-low transaction fees, as low as 1 cent with a 3 second block time.
- Adoption: Binance has built one of the largest cryptocurrency ecosystems and is preparing to make its way into DeFi. BurgerSwap will cater to a large audience of Binance users who want to participate in DeFi and governance.
- Ease of use: Binance Smart Chain comes with an Ethereum Virtual Machine-compatible environment, which allows Solidity developers to move into the new chain with almost no friction.
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