DeFi has really taken off, starting in 2020 and continuing into 2021. Automated Marker Makers (AMM) are popular and widely used. The NFT market has already exploded in 2021. It seems like everyone and their dog is dropping NFTs like it’s nothing. NFT marketplaces are also booming. So far, however, there has been no combination of the two. BakerySwap is changing that. It is the first DEX to be both an AMM and also an NFT marketplace at the same time.
In this blog I will give you a detailed explanation about the BakerySwap DEX and the BAKE token. I am going to explain to you how to use the BAKE token and what its price and expectation is. If you want to know where to buy the BAKE token, you’ve come to the right place.
Please note: please note that the text below about ‘BakerySwap (BAKE)’ as well as the explanation thereof should in no way be taken as advice. The choice for whether and in what way you want to trade (crypto) and which choices you make in terms of investment is up to you and you alone. We are not financial advisors.
You can first watch this short video explaining BakerySwap and the BAKE token.
- 1 What is BakerySwap?
- 2 How does BakerySwap work?
- 3 Who looks in the BakerySwap team?
- 4 What is the Bake Token?
- 5 What is the price of the BAKE token?
- 6 Where can you buy the BAKE token?
- 7 How can you store the BAKE token?
- 8 Conclusion
What is BakerySwap?
BakerySwap is a decentralized exchange (DEX) and a next generation AMM (Automated Marker Maker ) and you can find it on the Binance Smart Chain (BSC). This last fact ensures that there are lower gas costs compared to the Ethereum network. It is also an open-source DeFi protocol where you can swap crypto. There are several DEXs that have a food theme, but on the Binance Smart Chain they are the first with this theme. As an extra dessert, there is also an NFT marketplace or supermarket. That’s an interesting list of what you can find on BakerySwap, yield farming, swapping, NFTs and an NFT marketplace.
The fact that they have this NFT marketplace makes them one of the more popular DEXs on the BSC. However, there is increasing competition due to the lower gas costs and fast transactions that BSC offers.
The SMP is the main component of BakerySwap. It is one of the very first AMMs on the Binance Smart Chain. Here the token swaps take place with the help of the smart contracts in the liquidity pools , instead of using order books, like on a CEX (centralized exchange).
You can also mint any NFT ‘combo meal’ with the BAKE token. So it is also an NFT-Fi platform. You can find this in the gamification section, which I will come back to later in ‘How does the BAKE token work?’. These unique NFTs are not only an NFT, but you can also stake them, which in turn yields BAKE.
What is the Binance Smart Chain?
The Binance Smart Chain is a cheaper and faster alternative to the Ethereum blockchain. Especially when it is busy on Ethereum, traffic jams or blockages often arise, and this makes the gas costs very high. This TXstreet website shows those blockages in a fun way, and don’t forget to scroll down on the site. This is exactly where the BSC offers a solution and in the meantime there are already many DeFi protocols that gratefully use the Binance Smart Chain.
The Binance Smart Chain is built to provide a super fast and a lot cheaper solution and alternative to the smart contracts on the dApps. Developers can now set up a project faster and cheaper compared to the Ethereum network.
PancakeSwap and Mobox are two examples that run on BSC. These are completely different platforms, but they have one thing in common, to make DeFi accessible to everyone. Protocols running on BSC are easy to use and you can also access them easily by connecting your MetaMask.
How does BakerySwap work?
BakerySwap works like all Automated Marker Makers do, but also has a few extras. First, there are several different ways you can make money on BakerySwap. Let’s take a quick look at those.
- You participate in a BakerySwap liquidity pool and in this way earn rewards and BakerySwap liquidity pool (BLP) tokens. These tokens represent a value of the share you own in the liquidity pool.
- You can stake BLP tokens and get BAKE or more from another token. You can choose from two different types of liquidity pools. One with BAKE rewards and one without BAKE rewards. You can also earn extra BAKE by participating in a so-called ‘multiplier’ pool. The ‘Doughnut’ and ‘Waffle’ pools are then the most profitable multiplier pools. These are the BAKE/ BNB and BAKE/BUSD pools. These offer a whopping 12 x BAKE rewards.
- Finally , of course you can also strike BAKE . Here too you will receive more BAKE or another token. This happens in the ‘Bread’ pool.
A fee of 0.30% is charged on all transactions of a liquidity pool. 0.25% of this goes to the liquidity providers. The remaining 0.05% will be converted into BAKE tokens and given to BAKE token owners as a reward.
The following image shows you which tokens you can stake with, among other things. To Bake is to stake!
The BakerySwap NFT supermarket
You can also strike BAKE to get NFTs. You can then sell these in the BakerySwap NFT supermarket in exchange for BAKE. If you have the private keys for the NFT, you can also sell them on a secondary marketplace such as OpenSea, Rarible, or various other marketplaces. There is no shortage of NFT marketplaces right now!
The BakerySwap NFT supermarket also seems to be gaining more and more importance on BakerySwap. They have a large stable of NFT artists and artists, who drop and sell their work on BakerySwap. Exclusive drops also take place regularly. This isn’t all that surprising when you consider the enormous popularity of NFTs, and the amount of money involved.
This image shows a small portion of their NFT performers.
Another new project is their ‘gamification’ part of the DEX. Gamification is to add games or game elements to something, with the aim of encouraging participation. Here you can participate in 11 projects at the time of writing. The aforementioned combo meals are also part of this.
They are different projects, but they all work with NFTs as a basis . For example, there is a digital land sale in the Doge State (the USM Metaverse), combined with the ability to own MPB. This is again the most valuable NFT on the Binance Smart Chain. There is a Crypto Doggy shop, where you can buy and collect NFTs of dogs, inspired by the CryptoPunks . There is a series of 10,000 dog barking sounds as NFT! But also a slightly more traditional project such as a collection of rare cars. There is also something for football fans, although it is sometimes called ‘soccer’.
From any project, you can stake the NFTs for BAKE in return , or you can sell and buy them on the NFT supermarket or do the same on secondary NFT marketplaces.
This image gives you an idea of what the gamification section looks like on BakerySwap. In this case with the Crypto Doggies.
What is the BakerySwap Launchpad?
ERC20 and BEP20 tokens can be launched on this Launchpad , as well as new NFT projects. You can also access new projects on the Binance Smart Chain and participate in the IDOs (initial DEX offering) of these new tokens.
The following image shows two IDOs on the BakerySwap Launchpad.
Who looks in the BakerySwap team?
The BakerySwap team is anonymous! The developers of this project are big fans of decentralized autonomous organizations or a DAO. There was no presale of the BAKE token, nor did the team set aside or reserve any tokens for themselves. For every 100 BAKE farmed on the DEX, the team gets 1 BAKE. That is a relatively low reward for all BAKE that are farmed in total. Yet we are talking about several million US dollars, because 2.77 million BAKE is not really wrong. That’s still around $8 million, measured at the current price.
What is the Bake Token?
The BAKE token runs on the Binance Smart Chain and is therefore a BEP-20 token . The token is used across the platform and is multi-functional . It can also be used on other dApps on the Binance Smart Chain. BAKE also has a board function (governance), so you can help determine how the platform will develop in the future. We have also already seen that you can have passive income in various ways with the BAKE token.
At the time of writing, a total of 289,770,859 BAKE tokens have been created, of which 193,529,555.17 are in circulation.
What is the price of the BAKE token?
If you want to invest in the BAKE token, a good start is to know its price. If you are already going to trade, you also want to make a profit. You can make a technical analysis to see what the best buy or sell moment is.
The BAKE token has been trading below $0.05 until February 2021. On February 18, the price was $.04233 and a day later, on February 19, it skyrocketed to $2.6949. After that, it went sideways for a bit and then suddenly steepened to hit the preliminary ATH (all time high) on May 2 at $8.0629. After that, the price has also fallen again and at the time of writing, at the end of August 2021, the price is $2.74.
At CoinMarketCap , this token is at number 124 at the time of writing. It is a coin that has potential and I wouldn’t be surprised if it starts to develop well. Especially when you consider the current popularity of DeFi. If you want to invest in this coin, it is important to do your own research.
Where can you buy the BAKE token?
The BAKE token is unfortunately not yet for sale on Bitvavo , but you can buy it on Binance . You can also buy this token on CEXs such as Gate.io or Bithumb . A CEX in your favorite holiday country such as Indonesia on Indodax or Thailand on Zipmex also offers this token. There are also many liquidity pools on DEXs where you can find a BAKE pair. Of course on BakerySwap, but also PancakeSwap and ApeSwap are examples of this. On OpenSea, the largest NFT marketplace, you can also find two BAKE pairs.
It is recommended to buy these tokens on a CEX such as Binance or Gate.io, rather than a DEX. Especially if you are just starting to trade. On a DEX you have to go through several steps to be able to buy a coin. This increases the risk that something will go wrong and you will lose your money.
How can you store the BAKE token?
You have several options to store this token. The safest way is to store them on a hard wallet , also known as a cold wallet. With a hard wallet, such as the Ledger X or S and the Trezor, you are protected against internet hacks.
You can also leave the tokens on a CEX like Binance or Gate.io. However, this does not protect you against a hack of the stock market. These wallets are also called hot wallets.
As a third option, you can also use an online wallet such as MetaMask or Trust wallet. Here is also another chance of an internet hack, but it is theoretically smaller than a hack on a stock exchange.
BakerySwap is definitely not just another Automated Marker Maker. It’s much more. They offer many different options , of course, the AMM service, but also an NFT supermarket, a Launchpad, Gamification and staking. It is also a DeFi platform where you can have a passive income. Furthermore, the BAKE token can also be used on other protocols on the BSC.
A real all-round bakery, where you can get any kind of bread! With their fast transactions and low gas costs , they have certainly opened up a new audience. There is plenty of competition, but certainly so far in 2021 they have done well. I therefore look forward with confidence to a bright future for this DEX and the BAKE token. This is mainly due to their diversity. If you are interested in buying the BAKE token, do your own research.
Thanh Lanh Tran(1989) is Chief Editor from BitcoinUSD.com