BiSwap Decentralized Exchange Review
BiSwap Decentralized Exchange Review
The BiSwap DeFi platform is implemented on the Binance Smart Chain blockchain, it is the largest ecosystem after Ethereum. It was designed by Binance exchange– the world leader in the cryptocurrency market, in whose incubator the BiSwap project was created.
Venture investments and a recruited team of the best coders allowed the DeFi platform to offer users a full range of decentralized financial services in a short time:
- The DEX offers exchange of any tokens, BEP-20 format with a minimum fee of 0.1%
- Earning on staking in liquidity pools with receiving a fee from each trade
- Farming – additional accrual of BSW platform service tokens as reward for staking
- Liquidity mining with the accrual of an annual rate in tokens of promising projects curated by BiSwap
The reliability of the code and favorable working conditions on the DeFi platform, the possibility of returning 90% of the fees spent on trades, a three-component referral program and high interest rates led to a three-hundredfold increase in investments in BiSwap.
According to the DeFi Lama service, the amount of locked investments at the start of BiSwap was $3 million. At the end of December, TVL of investments passed the $1 billion mark.
This result provided the DeFi service with the sixth place in the capitalization rating among the Binance Smart Chain blockchain projects.
Since the launch of the platform at the end of May 2021, developers have been constantly adding new options, achieving full versatility of the product.
BiSwap users can earn high profits:
- Participating in the initial token issues of new startups specially selected by the BiSwap team on a special IDO platform
- By acquiring the first NFT tokens of the future Biswap – Squid NFT World game, working on the “play to earn” model
- Getting BSW without initial investment by becoming a Squid NFT World Player
- By participating in the drawing of cash prizes in the decentralized lottery service
To help speculators and investors, BiSwap developers have created an analytics page on the site that discloses information on trading volumes and the current size of TVL.
This service will help investors pay attention to which of the pools receive the largest inflow of investments. The example of the picture below shows that the first place is occupied by the USDT/BUSD pair with an interest rate of 6.08%.
The entire column of the annual income of top BiSwap pools contains very low percentages, despite the presence of pools with three-digit percentages in the service. This means that most investors choose pairs of coins with equivalent losses, protecting them from loss when the cryptocurrency market falls.
The USDT/BUSD deposit generally guarantees the receipt of 6.08% in dollars in any scenario. The income rate is higher than interest in many banks.
Transaction analytics gives the trader an understanding of which tokens are the most in demand on the DEX exchange at the moment. USDT is logically the first, most transactions take place in a token tied to the dollar, but tracking the rest of the coins will help track the occurrence of pumps.
A direct report on transactions will provide more up-to-date information on the mood of the market. The picture below highlights two transactions for the purchase of LINK and one with the “reset” of MATIC. If you look at the chart of these cryptocurrencies, you can see the daily growth of the first token by 19% and the fall of the second by 6%.
Following big trades is a common scalping tactic – frequent short-term entries to make a profit on strongly rising and falling assets.
How to work with the BiSwap DeFi platform?
Working with the BiSwap platform, like other DeFi services, does not require an account. It is enough to connect the wallet to the https://biswap.org/https://biswap.org / website by clicking the corresponding menu item in the upper right corner of the page.
In the list that appears, find an existing application or pre-install any program from this list.
BiSwap runs on the Binance Smart Chain (BSC), compatible with the Ethereum virtual machine, which allows you to use the same wallets and even their addresses for two blockchains. However, to connect to BSC, the user must do two things:
- Register the Binance blockchain address in the wallet settings
- Top up your wallet with a BNB token to pay for gas needed when sending and receiving transactions
How to exchange tokens on BiSwap
The BiSwap DeFi platform operates under the Automatic market maker (AMM) protocol, which connects customer applications with several DEX exchanges, which ensures the exchange of tokens at a favorable rate.
The exchange of tokens takes place on a special page of the BiSwap website, which can be accessed through the “Exchange” side menu. After clicking it, a universal window with tab functions appears:
- Swap – exchange of any tokens issued on the Binance Smart Chain blockchain
- Liquidity – deposit transfer to the liquidity pool and withdrawal of earned tokens
- Transaction – transfer of cryptocurrencies
By default, the Swap mode is selected in the window to activate which you need to connect the wallet with the “Unlock wallet” option. If the application is connected or it was activated on the site earlier, the user will see their own balance and will be able to choose:
- In the top line – coins from your own wallet
- In the bottom line – the asset to be purchased from a long list of tokens by clicking the drop-down menu
As soon as a pair of assets is selected and the trader decides on the amount of cryptocurrency being sold in the top row, information on fees will appear below. BiSwap will offer payment of 0.1% fees, 90% of which will be returned back with BSW service tokens. Such a return is called “mining transactions”, the more transactions, the higher the trader’s income.
Features of the Liquidity tab
The “Liquidity” tab allows you to add liquidity to any BiSwap pools that are dispersed under the side menu tabs:
The user places two cryptocurrencies in pools at once (rarely one), necessarily in equal shares equivalent to the dollar value of each asset. Before adding liquidity, be sure to check the sufficiency of the amount of each asset, taking into account fee costs.
To determine the type of liquidity pool, you can first visit the “Farms” or “Analytics” tabs. The process of placing liquidity is started by the “Add Liquidity” option on the “Liquidity” tab.
The tokens of the pair in the first and second row are selected from the drop-down menu, where all the options for pool assets are listed in the upper block.
After choosing the deposit size of the top line, the second one is selected automatically, equivalent to the cost of the first token. The share occupied by this investment in the pool is determined below. After clicking “Supply”, both assets are debited from the wallet in exchange for LP tokens.
Before the final placement of the LP token in the pool, the program will require additional confirmation of the operation.
BiSwap’s DeFi platform is user-friendly due to its versatility and ease of use. Traders virtually do not incur costs during the exchange, thanks to the mechanism of fees mining and receive additional bonuses for participating in the blockchain game “Squid Game”.
In turn, the gameplay opens up the possibility of making money off NFT tokens. The IDO platform is also available to users for initial investment in the latest blockchain startups.