Introduction

BakerySwap is a decentralized exchange that integrates DeFi and NFTs. Besides popular DeFi operations like yield farming and staking, it creates an innovative way to provide financial utility for NFTs, where users can lend and borrow fractionalized NFTs on multiple chains. In this article we aim to explore BakerySwap, and how it uses the AMM model to tokenize NFTs and features from its latest upgrade.

What is BakerySwap (BAKE)?

Source: BakerySwap — BakerySwap’s latest features include a multi-chain feature, NFT Swap, and launchpad

BakerySwap is a multi-chain decentralized exchange (DEX) and NFT-Fi platform, that features DeFi tools such as yield farming, lending, borrowing, and staking. It goes further to incorporate an NFT marketplace and the use of NFTs as financial instruments.

The development team runs as a strictly decentralized autonomous organization, with no pre-reserved tokens or pre-sale tokens for the team. Developers only receive 1 BAKE for every 100 BAKE farmed.

Acclaimed as a faster and cheaper version of Uniswap, It runs two types of liquidity pools: one with BAKE rewards and the other with rewards from other tokens.

On its primary chain (BNB Smart Chain), users can exchange BEP-20 tokens, BNB, and more through the use of liquidity pools that are hosted on BSC smart contracts. Users can farm more tokens by staking BAKE to earn more BAKE tokens and lock BAKE and BLP (BakerySwap liquidity provider) tokens in liquidity pools to create more liquidity for DEX operations.

It is important to note that BakerySwap is also available on Ethereum and Base, and hopes to expand to other popular blockchains, notably Bitcoin.

A Brief History of BakerySwap

BakerySwap was founded in 2020, and modeled after Uniswap by a team of anonymous developers. It started as a DEX on the BNB smart chain and has evolved to a multi-chain exchange, with a launchpad for upcoming projects.

How Does BakerySwap Work?

Source: DappRadar

BakerySwap uses the AMM model popularized by Uniswap. AMMs facilitate token swaps using smart contracts, rather than using centralized order books. Let’s take a closer look at its operation.

BakerySwap AMM Model

BakerySwap leverages the Automated Market Maker (AMM) model through the utilization of smart contracts and liquidity pools.

Automated market maker allows users to trade assets without an intermediary, they use the constant product formula (an algorithm that maintains a balance between assets in a platform’s token reserves) to give constant feedback on the price between two assets. The reserves are derived from liquidity pools composed of various cryptocurrencies contributed by BakerySwap users.

BakerySwap Liquidity Pools

Source: Morioh

BakerySwap users can become liquidity providers by depositing funds into a supported liquidity pool. Participants adding liquidity to these pools are rewarded with Liquidity Provider (LP) tokens, that correspond to their share in the pool.

Users have the flexibility to convert these earned LP tokens back to their initially supplied tokens. Importantly, users engaging in liquidity provision not only receive LP tokens but also earn trading fees throughout this process. BakerySwap liquidity pools have a 0.30% transaction fee, of which 0.25% goes to the liquidity provider while the remaining 0.05% is given to BAKE holders.

The currently supported BEP-20 liquidity pools are:

• Cake: Stake BTC-BNB BLP to earn BAKE
• Pet Food: Stake PET-BAKE 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
• Bread: Stake BAKE to earn BAKE
• Doughnut: Stake BAKE-BNB BLP to earn BAKE

The BakerySwap platform also allows users to stake their BAKE tokens to earn alternative BEP-20 tokens, including TSA, TKO, TLM, and xDitto.

The BakerySwap NFT Ecosystem

The BakerySwap ecosystem highlights the NFT products of BakerySwap.

BakerySwap NFT Marketplace

Source: BSC News

The NFT marketplace is a feature where users can purchase NFTs or mint one. It also has a bidding feature that allows NFT creators to customize the parameters of the sale and includes a BSC Artists section for next-rated artists. Renowned artists can be found in the Featured Artists section.

Additionally, the NFT marketplace is also a field for meme contests, gamification, and NFT + DeFi solutions.

The Bakery Gallery

Source: BakerySwap

The Bakery Gallery is a closed version of the NFT marketplace best described as an NFT issuance platform meant to compete with top-quality Ethereum-based projects by appealing to sophisticated collectors and investors.

Bakery Gallery performs three roles designed to provide artists with more exposure and attract top talent to BSC via the NFT drop process:

• Provide information on upcoming NFT drops
• Display profiles of selected artists
• Display artworks

Note: The above features are still exclusive to the BNB smart chain.

Main Features of BakerySwap

Source: BakerySwap

On July 21, 2023, BakerySwap announced a strategic upgrade that would allow for new features such as;

• Multi-chain integration
• NFTSwap
• Launchpad and Incubator
• BakeAI

Multi Chain Integration

Source: BakerySwap — Users can easily switch to their preferred chain on the homepage

The multi-chain feature was developed to provide access to BakerySwap on other chains and leverage high-quality project resources.

On Ethereum, BakerySwap plans to transform its DEX into an aggregator, incorporating a variety of trading protocols and platforms, including Uniswap V2, V3, and more. To develop innovative trading mechanisms and provide better liquidity solutions.

On Base, BakerySwap is the launchpad for the PunkX NFT Collection. However, BakerySwap is fully functional on the BNB chain and plans to upgrade its features on Base and Ethereum chains. Further, it has announced integration plans for Bitcoin, Arbitrum, Polygon, and other notable chains.

Bakery NFTSwap

Source: BakerySwap — bTokens can be used to purchase a fraction of an NFT.

Bakery NFTSwap is a feature that permits the trading of NFTs like tokens. It offers an AMM for trading NFTs where users can buy and sell NFTs directly and immediately at the best price. BakerySwap introduces the use of bTokens as a fractionalized representation of NFTs, presented in the ERC-20 standard.

bTokens effectively resolve NFT liquidity issues through dedicated liquidity pools when paired with ETH or USDT on AMM exchanges like BakerySwap and Uniswap. The utilization of a Conversion Contract ensures a fixed ratio for conversion between NFTs and bTokens in both directions, fostering a user-friendly environment where NFTs can be traded as effortlessly just as other utility tokens.

Note: NFTSwap is also available on Base and Ethereum.

Launchpad and Incubator

Source: BakerySwap — BakerySwap suggests these four major points for projects collaborating with its Launchpad

The BakerySwap launchpad supports BRC-20, ERC-20, BEP-20 based tokens and new NFT projects. It is designed to discover and cultivate high-quality projects while ensuring user safety, and supporting long-term sustainability. Recently launched products include BitLand, BitcoinCats, and PunkX NFT. Additionally, BakerySwap incubator provides funding, technology, partners, and community resources, to realize the rapid development of ideas.

The success of its BRC-20 IDO (Initial DEX Offering) saw an influx of investors, causing an increase in the price of its native token, $BAKE. For example, the launchpad project BitcoinCats, a gaming platform on the Bitcoin blockchain, garnered over $100 million in USDT at launch, surpassing about 20X returns, and currently trades on Gate.io crypto exchange under the trading pair: 1CAT/USDT. Its second BRC-20 launchpad project, BitLand also launched successfully, raising about $80.5M in $BAKE and $23M in $1CAT.

Here are some opportunities that the BRC-20 standards bring to BakerySwap:

1. Organic Traffic: The BRC-20 market cap currently stands at $3.5 billion. BakerySwap as a launchpad positions itself to benefit from the influx of investors and onboard new users to its platform, who might interact with its product offerings.

2. Multi-Chain Integration: As mentioned earlier, BakerySwap has evolved to be compatible with multiple chains. The BRC-20 launchpad would serve as its first foray into the Bitcoin network.

BakeAI

Source: BakerySwap

BakeAI is an Artificial Intelligence-Generated Content (AIGC) platform, offering personalized solutions that meet the requirements of diverse user profiles. From creating images, and generating Profile Picture (PFP) designs, to developing derivative works centered around intellectual property (IP) characters.

The platform goes beyond assisting artists in community establishment and NFT collection launches. It also has a revenue model that supports developers to construct their AIGC tools.

What is BAKE Token?

BAKE is the native token of BakerySwap. It also serves as a governance token, giving BAKE holders voting rights in the development of the project.

Proposed Tokenomics

There are currently 289,770,513 BAKE tokens in circulation out of a total supply of 289,770,513 BAKE. Further details on BakerySwap Tokenomics are not currently available.

Is BakerySwap (BAKE) a Good Investment?

BakerySwap is a dynamic DeFi protocol that incorporates an innovative NFT-Fi feature, enabling the tokenization and fractionalization of NFTs, thus, expanding its appeal and utility. Its recent popularity has been driven by the success of its launchpad with the notable release of BRC-20 tokens such as BitcoinCats and BitLand.

Currently favored by a current positive sentiment in the market, BakerySwap has experienced a gradual rise in its price, signaling a notable recovery from a prolonged period of lower valuation. This resurgence has positioned BakerySwap as an attractive investment option, with market predictions supporting its potential as a sound investment opportunity.

However, like any investment, investing in BakerySwap carries certain risks, including the volatility of the cryptocurrency market and potential regulatory changes. Investors should always do their own research and assess their risk tolerance before investing in any cryptocurrency. It’s important to remember that investing in BakerySwap does not guarantee a profit and could result in total loss of capital.

How to own BAKE Token?

You can buy $BAKE from centralized exchanges like Gate.io. To own the token, create a Gate.io account and complete the registration process. Next, fund your spot trading wallet, and go through the steps to buy $BAKE. Gate.io offers traders the following trading pair: BAKE/USDT.

Highlights

BakerySwap Launches Third BRC-20 Project

Source: BakerySwap

BakerySwap has successfully launched two BRC-20 projects and has announced another BRC-20 project BitCat, a novel on-chain derivative protocol based on the BRC-20 market, developed by Copycat Finance and backed by Binance Labs.

Crypto Doggies NFT on Bakery NFTSwap

Source: BakerySwap

The Crypto Doggies NFT Collection is a pack of 10,000 unique, animated Doggy NFTs from popular breeds like Shiba-Inus and Huskies. The Crypto Doggies NFTs which had previously launched on the BNB Chain, will now migrate to Ethereum. The bToken assigned to the Crypto Doggies NFTs, $DoggyNFT is the bToken of Crypto Doggies NFTs, which can represent the fractionalized form of the Crypto Doggies NFTs. Thus, one Crypto Doggies NFT corresponds to 1 $DoggyNFT token.

Bakery Incubator Announces a $2M Strategic Investment in Topic.Market

Source: BakerySwap

Bakery Incubator, the investment arm of BakerySwap, invested $2 million in Topic.Market, a SocialFi project where you can earn from voicing your opinions on trending topics in the cryptocurrency space.

Useful References

For the latest updates about BAKE, you can visit:

• The official website
• Twitter
• Telegram
• Medium

Take Action on BAKE

Check out BAKE price today and start trading your favorite currency pairs:

• BAKE/USDT