Bancor Network Token: Decentralised Cross-Chain Liquidity

While there are plenty of blockchain projects focused on dApps and the conversion of tokens, one that stands out is the Bancor Network and its BNT token.

Indeed, this project is one of the most well known in the cryptocurrency space. It has also had its fair share of ups and downs. From a blockbuster ICO to legal challenges. From widespread partnerships to a widely publicized hack.

However, is it something you should consider?

In this Bancor Network Token review, I will give you everything that you need to know. I will also take a look at the long term prospects and adoption potential of BNT.

What is the Bancor Network?

The Bancor Network has created an elegant solution in its decentralized network which allows traders to swap a wide selection of tokens seamlessly across nearly 10,000 token pairs, and all with a single click.

What is Bancor Network
Image via Bancor Website

Bancor allows users to instantly convert between two tokens without needing a counterparty to the trade. This is all done right within the Bancor wallet, and this model has allowed Bancor to provide traders with automatic liquidity for trades.

More importantly, it allows the network to remain completely decentralized, and much of the functionality of the network is thanks to the innovative use of the BNT token to facilitate trades.

So, this all sounds really intriguing but in order to understand the real heft behind Bancor, we have to go over its relatively eventful history.

Bancor Network Background

The Bancor Network is overseen by the Bancor Foundation, which is based in Zug, Switzerland. The company also operates a Research & Development center in Tel Aviv, Israel, which gives the company a foothold in the rising blockchain hub in Zug as well as the rising Middle Eastern technology center of Tel Aviv.

The company was founded in 2016 by a group is Israelis with a background in Silicon Valley start-ups, as well as experience in scaling startups and blockchain technologies. It was named after the international trade balancing currency initially envisioned by John Maynard Keynes.

Bancor Network Token Sale
Token Sale Page for the Bancor Network Token

The Bancor Network is perhaps most well-known for holding one of the most successful ICOs ever. In 2017 it set a world record by raising over $153 million in Ethereum tokens in less than 3 hours. The world-record has since been topped by several projects (including SIRIN Labs and Tezos), but remains an impressive beginning for the project.

Since the ICO the Bancor Network has seen over $1.5 billion in token conversions take place on its platform, all facilitated by the BNT token. In addition, there are over 100 liquidity providers serving as Bancor nodes, and these nodes provide over $13 million in liquidity by staking BNT tokens to power token conversions.

More recently, on January 1, 2020 Bancor has added dramatically to its liquidity pool by airdropping all of its Ethereum Reserve, which totaled 10% of the BNT marketcap at the time, in the form of ETHBNT Bancor Pool Tokens.

In effect this added 60,000 liquidity providers, although it’s understood that many of the airdrop recipients simply turned around and sold the tokens. Still, the Bancor network has gone from liquidity of just under $4 million on January 1, 2020 to over $17 million as of mid-June 2020.

Cross-chain Conversion

Bancor has made the user experience of exchanging tokens quite easily. The intuitive wallet app is slick and allows for the quick and easy conversion of tokens similar to what users get when using Coinbase Pro or other custodial wallets.

While the user interface makes it look simple, behind the scenes the Bancor wallet is transacting directly with BNT smart contracts on the blockchain, all while allowing users to retain full control of their private keys and funds at all times.

Bancor Cross Chain
Cross Chain Token Swap on Bancor

The obvious advantage of Bancor’s wallet is that it not only allows for the exchange of tokens, but it does so without the need for a counterparty. This makes it the first network to allow cross-chain conversions without requiring users to give up their private keys in the process of the exchange.

Bancor began their cross-chain integration efforts with EOS and Ethereum, however, they have plans to add other bridges over time, eventually enabling them to function as a multi-chain liquidity solution that can provide instant token conversions for many of the popular blockchains such as Bitcoin, Tron, and Ripple.

Range of Conversions

Already Bancor gives traders and investors an amazing range of conversion options, with fee-less, instant trades available for tokens across more than 8,700 token pairs right through the Bancor wallet.

To make a comparison, one of the most popular exchanges Binance has roughly 196 tokens available, but just 586 trading pairs.

Automatic Liquidity

One of the greatest benefits of Bancor and the BNT token is that they bring liquidity to cryptocurrency markets, and without liquidity, currencies are apt to wither and die. After all, who wants to own a currency that can’t be easily bought and sold.

Of course, the top cryptocurrencies like Ethereum, Ripple, Litecoin, and others in the top 20 have enough trading volume on their own, but the Bancor Protocol brings a unique solution that delivers automatic decentralized liquidity to any token.

Bancor Liquidity
Instant & Affordable Liquidity on Bancor. Image via Bancor Blog

Through the Bancor Protocol any token at all, even those privately created, can get instant liquidity, no matter what size trade volume the token enjoys. This is incredibly important functionality when it comes to facilitating the adoption of decentralized applications.

Since many dApps have their own tokens, and now those tokens are able to be converted with other cryptocurrencies instantly and with a single click right within a user’s wallet.

How Bancor Protocol Works

At this point, you might be wondering if it’s really necessary to have another decentralized exchange. After all, the centralized exchanges seem far more popular at this point, and there are dozens of active exchanges already providing a trading platform and liquidity for cryptocurrencies.

In short, yes the world does need another exchange, or at least it needs an exchange like Bancor. That’s because the Bancor platform provides a much-needed service of increasing liquidity for any token, and of creating a platform where any token can be exchanged without the need for a counterparty.

This is something that can’t be accomplished with any other asset. Take fiat currencies as an example. If you want to exchange U.S. dollars for Yen you need to find someone willing to sell Yen to complete the transaction. Every asset is like this. There must be a buyer and a seller for a transaction to work.

Bancor Protocol
Overview of the Bancor Protocol for external developers

Bancor only requires one person to complete a trade, with the liquidity provided by the native BNT token and its smart contracts. The BNT token’s smart contracts ensure that there is a balance between tokens at all times. Once any trade is concluded there will also be a total remaining that represents the BNT balance coded into the smart contract.

This structure removes the need for the exchange to act as a third-party to transactions. With Bancor and its BNT token, you are able to continually perform exchanges for Ethereum and EOS compatible tokens right through the Bancor wallet.

You can think of the system as an hourglass. It’s a closed system and it doesn’t matter how you turn the hourglass, it always holds the same quantity of sand. In this analogy, the hourglass represents the BNT smart contract, and the grains of sand are the tokens being traded.

And next up from the team will be a development marketplace for dApps that will also make use of the cross-chain compatibility and balanced smart contracts. Also in the pipeline for the future is staking rewards to incentivize liquidity, and a BancorDAO to add self-governance to the blockchain and fully decentralize.

Bancor Staking Rewards

BNT staking rewards are a future enhancement that is planned to incentivize users to provide liquidity for the network. The basis for adding staking is that Bancor needs liquidity to lower fees for traders, while also increasing trading volume and overall network fees. By providing users with an incentive to add liquidity to the network Bancor is expecting to see its network grow and flourish.

Simulated Staking Returns
Simulated Staking APRs. Image via Bancor Blog

While plans for adding staking rewards are in the early stages the basics are that users will receive rewards of BNT for holding their BNT in an existing liquidity pool such as MKR/BNT or ETH/BNT. The amount of new BNT that will be created as staking rewards and the distribution of staking rewards to different pools on the network will be decided by users voting in the BancorDAO.

This type of reward system is expected to pull new users into the ecosystem thanks to the APR generated by fees and staking rewards. Bancor is carefully designing their staking rewards system to avoid concentrating the rewards in a small number of pools, choosing instead to provide an even distribution across dozens of network pools.

Bancor Vortex

Vortex is the solution implemented in February 2021 which allows users to provide liquidity in BNT to borrow funds while continuing to obtain yield from swap fees.

Vortex reworked the existing vBNT mechanism, which gave the token more uitility aside from providing governance. As you’ll see later this turned out to be very good when Bancor moved to gasless voting, otherwise the vBNT token would have lost all utility.

vBNT is received when staking BNT into a liquidity pool making it the pool token for the Bancor network. Vortex adds additional functionality to vBNT such that user are able to sell vBNT for actual BNT tokens. That means once vBNT is converted the resulting BNT can be exchanged for any other token.

The addition of this functionality makes Vortex a no-liquidation lending platform, which is pretty cool since it allows a liquidity provider the ability to receive future rewards immediately. And because the principal will continue accruing swap fees the loan eventually repays itself.

The no-liquidation aspect of Vortex arises because vBNT and BNT are essentially the same token. Thus any change in the price of BNT is closely mirrored by vBNT. And while vBNT is created in a 1:1 ratio when staking, the price relationship between the two is not that simple.

vBNT Burner Contract

Originally Bancor Vortex was envisioned with a token supply management solution that would capture a portion of trade revenue and use it to buy and burn vBNT. That original model was dynamic and complex, however in March 2021 the DAO voted to replace the dynamic model with a flat-fee model.

Under that flat-fee model 5% of the total protocol swap revenue is shifted to the vBNT Burner Smart Contract, and the addition of this will turn vBNT into a scarcer asset. That is long-term deflationary and positive for the Bancor ecosystem.

The flat burn rate will be incrementally adjusted over the course of 18 months, with the final target being 15%. The theory is that as trade volumes increase the burning of vBNT will also accelerate. In the coming years this vBNT burn mechanism is expected to be a critical part of the flexible monetary policy employed by the DAO.

In the vBNT burn mechanism the burning of tokens is not automatic. Tokens are moved to the burned smart contract and users are then offered the chance to  interact with that contract, also paying the necessary gas fees associated with the burn.

Each vBNT token burned represents a BNT token that is locked into the network forever. That increases the scarcity of BNT and supports the growth in total locked value over time.

The Bancor team also envisions new gamified DeFi strategies coming from this model. In addition to direct incentives to activate the burn mechanism, a new type of transparent and equal-opportunity game becomes available for vBNT.

Speculators will have ample capacity to observe each other’s activities on-chain, and may choose to simultaneously create and seize arbitrage opportunities on the vBNT pool at their leisure.

Bancor Team

The Bancor Network was founded in 2016 by Israeli siblings Guy and Galia Benartzi. Both remain active with the project, with Guy on the Foundation Council, while Galia is in charge of business development. She is also a strong proponent of women in blockchain and crypto.

Other board members include Olivier Nathan Cohen, who is also the founder and COO of Altcoinomy, a crypto KYC operator- facilitating cash out in Swiss private banks, AML screening of ICO investors, and institutional crypto/fiat transactions.

Bancor Team
Galia & Guy Benartzi & Yudi Levi. Images via Bancor & Twitter

The CTO of Bancor is Yudi Levi, and he’s held that position since the start of Bancor in 2016. Prior to that, he was co-founder and CTO of AppCoin. He also spent over a decade as a chief architect of several mobile projects, including Real Dice, Mytopia, and Particle Code.

The team also has an impressive list of advisors, including Brock Pierce, the Chairman of the Board at the Bitcoin Foundation, and venture capitalist Tim Draper.

The BNT Token

As was mentioned earlier, Bancor held an ICO on June 12, 2017 that raised $153 million in just three hours. That ICO sold roughly 40 million BNT tokens at an average price of $3.92 each. Currently, there’s a circulating supply of BNT of nearly 70 million tokens.

The BNT token hit its all-time high of $10.00 on January 10, 2018 and its all-time low of $0.117415 on March 13, 2020. As of mid-June 2020 it recovered remarkably from its March all-time low and traded at $1.17 just three months after for an amazing gain of 1,500%! That gain was primarily powered by news of the July 2020 release of Bancor V2.

Bancor’s BNT did not experience quite the same rally as many other altcoins in 2021, although it did see some upside as it reached $9.15 on March 7, 2021. Since then it has cooled significantly and as of May 22, 2021 it is trading at $4.36.

BNT Chart

BNT price movements over time. Image via Coinmarketcap.com

The circulating supply can change however since BNT is created as needed to initiate exchanges. The Bancor protocol will create as much BNT as needed to match the value of currencies held within the smart contract. Once staking rewards are added the circulating supply will necessarily increase more rapidly and regularly.

Trading & Storing BNT

You’ll find that most of the trading volume in the BNT token is at Bancor, naturally. It is also offered at a number of other platforms, including Binance and Coinbase, although trade volumes are pretty low.

Moreover, if we were to take a look at the order books on an individual exchange such as Binance it is clear that there is a lack of liquidity there. You will need to be very careful when placing an order there as if reasonable sized orders are likely to lead to slippage.

Once you have your BNT tokens you are going to want to store them in a secure offline wallet. Given that these are ERC20 tokens it means that you can store it any Ethereum compatible wallet.

If you’re trading or staking then storing BNT in the native Bancor Wallet will make sense.

Bancor V2

Late in April 2020, with the BNT token languishing around the $0.20 level the team announced that they would soon be releasing Bancor V2. The token didn’t immediately respond, but by mid-May it had began a serious rally, and a month later is trading at $1.17. That’s especially amazing given that the token was at its all-time low just a short time before in mid-March 2020.

Bancor Version 2
Bancor V2 Announcement. Image via Bancor Blog

The Bancor Protocol V2 is expected to add several important features that will put Bancor at the front of the pack of decentralized finance projects. The changes are meant to address four key issues commonly cited as obstacles to the widespread adoption of Automated Market Makers (AMMs):

  1. Exposure to “impermanent loss”
  2. Exposure to multiple assets
  3. Capital inefficiency (i.e., high slippage)
  4. Opportunity cost of providing liquidity

It’s interesting to see that the new features were created as opt-in and users are able to create and fund new AMMs with some, all, or none of the new features.

Bancor V2 features:

  • A new automated market maker (AMM) liquidity pool integrated with Chainlink price oracles that mitigates the risk of impermanent loss for both stable and volatile tokens.
  • Provide liquidity with 100% exposure to a single token
  • A more efficient bonding curve that reduces slippage
  • Support for lending protocols

Bancor V2.1

Even before Bancor V2 was fully launched the Bancor team was already discussing the necessary changes for Bancor V2.1. This next level update was designed to take the AMM model to the next level and it differs from Bancor V2 by finally offering solutions to two problems that have plagued AMMs ever since they were created. Those problems are:

  • Involuntary Token Exposure
  • Impermanent Loss

Unlike other AMM protocols, Bancor uses its native BNT protocol token as the counterpart asset in every Bancor pool. Through the use of an elastic BNT supply, the v2.1 protocol co-invests in pools alongside LPs to support single-sided AMM exposure and to cover the cost of impermanent loss with swap fees earned from its co-investments.

Single-Sided Exposure

In the majority of 1st generation AMMs it’s necessary for liquidity providers to contribute equal amounts of each asset represented in the pool.

Obviously this is not only inconvenient, but it can also be a liability when an LP is only interested in providing liquidity for one asset, or possibly even holds just one asset. Bancor v2.1 breaks this by allowing LPs to provide a single token rather than and even or determinate pair.

Using Bancor v2.1 LPs are able to provide single-sided liquidity exposure using either ERC-20 tokens, or the Bancor BNT token.

Impermanent Loss Insurance

It’s well known that AMMs which are subject to arbitrage opportunities also suffer impermanent loss as a side effect. Any time there are two assets paired in a constant product AMM the product of those two assets must remain constant.

That means any price variations in either asset leads to changes in the amount of each asset held. So, assets that rise in value are liquidated, while assets that fall in value are purchased to maintain the constant product.

In some cases swap fees are used to offset impermanent losses, however these losses can easily exceed any swap fees earned by the LPs. In this case the LP experiences a negative return when they eventually withdraw their assets.

Bancor v2.1 was designed to avoid this situation and ensure that every LP gets back the same value deposited plus trading fees. This is accomplished through a unique concept called Impermanent Loss Insurance.

Impermanent Loss Insurance isn’t automatic, however. It accrues by 1% each day over time, and after 100% it achieves 100% protection on funds in the pool.

There is also a 30-day cliff used, which means any LP who withdraws their capital before it’s been in the pool for 30 days will incur the same impermanent loss as if there was no insurance protection. Once 100 days has passed the insurance protection is full and the LP can receive 100% compensation for any loss incurred within the first 100 days or any time thereafter.

When the pool does not contain enough tokens to cover the losses fully with the staked tokens the insurance can be paid out in an equivalent value of BNT tokens.

Limitations

Bancor v2.1 has some very special features, but to allow for the positive features there are also three notable limitations in the platform:‌

  1. Bancor v2.1 will only work with two-asset pools. For pools with more than two assets and custom weights. Developers need to deploy legacy v1 pools.
  2. Bancor v2.1 does not support dynamically adjusting supply tokens (“rebase” tokens) that can control and adjust token balances in users’ wallets.
  3. When withdrawn from the system, BNTs are locked for a pre-set time (default 24 hr) to prevent panic liquidation.

Roadmap

Bancor does not have a formal roadmap, but they do have a focus and continue improving the platform and adding new features. As of May 2021 Bancor has announced three pillars of development that they are working on:

  1. Token Onboarding: Open Bancor’s doors to as many assets as possible by lowering the barrier to whitelisting, and making bootstrapping and incentivizing liquidity easier and cheaper for token projects.
  2. Financial Access & Control: Design powerful financial tools for LPs to earn high yield on their idle assets and manage returns in a stress-free, user-friendly environment.
  3. World-Class Trading Venue: Capture a growing share of total crypto trading volume by offering the best prices on a broad range of assets, a world-class trading experience including advanced charting & analytics, and novel tools for professional and retail traders.

Gasless Voting

Gasless voting via the Snapshot governance platform was added in April 2021. The popularity of the proposal to move to Snapshot was apparent as the Bancor community not only passed the proposal with a 98.4% majority, it was also the largest voter turnout for any DAO decision thus far, with 84 unique address participating.

The implementation of Snapshot makes it far easier for community members to participate in governance, and this has been borne out in the real world, with over two dozen proposals added to Snapshot in the month following the addition of gasless voting.

If there is ever a problem found with Snapshot there is a quick-release mechanism that will revert governance back to the Ethereum blockchain. This will serve to protect the DAO in the case of emergency.

Conclusion

One of the major roadblocks in mass adoption is the lack of liquidity, and difficulty in exchanging various tokens for each other. The Bancor Protocol has done away with this problem through the automation of liquidity.

It’s true that complete beginners will face a small learning curve, but the UI of the wallet is as simple as they come. Anyone new to cryptocurrencies should have no problem learning how to make exchanges using the Bancor wallet.

And the newest update to the online platform is making things even easier for users as the team is now focusing its efforts more on creating a powerful and easy to use platform rather than building liquidity.

Moreover, the Bancor Protocol is making it easier for developers to build a seamless exchange application between a plethora of tokens. There are also a host of updates that have been planned for the next 6 to 12 months. This is part of the ongoing upgrades to the protocol and applications involved in the Bancor ecosystem.

Of course, there are still questions linger around the project including the issues of regulations in the U.S. and beyond. Potential centralisation of control in the three year transition period may deter some who fear the potential for arbitrary frozen accounts.

You also have the really paltry token performance of BNT especially over the past year. While the majority of tokens were soaring 500% or more in early 2021 the gains for BNT were relatively tame. It was one of the few tokens that did not reach a new all-time high in 2021.

Either way, Bancor does have some great technology, use cases and a strong team powering it forward.

Featured Image via Shutterstock

Ethereum Classic Review: The Original Ethereum Blockchain

Although Ethereum Classic is a well known Ethereum fork, there are a number of things that are making this project stand out in its own right.

There are benefits to Etheruem Classic from being a fork. Given the similarities to Ethereum, exchange integration is that much easier and this is what has spurred a widescale adoption of Ethereum Classic and its native ETC token.

However, is it really worth considering?

In this Ethereum Classic review I will attempt to answer that. I will also analyse the long term adoption and price potential of ETC tokens.

What is Ethereum Classic?

Ethereum Classic is a blockchain-based decentralized cryptocurrency platform, and the oldest to run smart contracts, although it isn’t the most well known to include these self-executing autonomous applications.

The Ethereum platform, which is the blockchain that forked to create Ethereum Classic, is probably the best known smart contract platform, but many don’t know it isn’t the oldest.

What is Ethereum Classic
Etheruem fork from Ethereum Classic. Image Source

Smart contracts on Ethereum Classic are used to give the benefit of a decentralized governance system. Through the use of smart contracts, Ethereum Classic guarantees that there is no possibility of any censorship, manipulation, monitoring, or external interference in its governance system.

This was the original intent for smart contracts, and Ethereum Classic held to it after the June 2016 split in the Ethereum blockchain that created Ethereum Classic. That split occurred as a response to the DAO hack that saw $70 million stolen in a matter of minutes.

Ethereum Classic is the continuation of the unaltered history of the original Ethereum chain. The ETC network exists to preserve the principle of “Code is Law“.

Ethereum Classic Fork

The group that championed the fork had as their intention to roll back the blockchain to a point prior to the hack, thus restoring the lost funds. Those championing Ethereum Classic, which is the original Ethereum blockchain all the way back to the genesis block, felt that while it initially seemed right to restore the stolen funds, there was a very good reason not to do so.

According to the ETC Declaration of Independence, there were several grievances held against the founding members of Ethereum, most of which revolved around actions taken that were against the principles of decentralization.

Most importantly though they claimed that a hardfork to restore the lost DAO funds violated two key aspects of what gives peer-to-peer cash and smart contract-based systems value: fungibility and immutability.

DAO Hack History
History of the DAO Hack. Image Source

Fungibility is the feature in any money whereby one unit of the currency is equal to any other unit of the currency. So, one dollar is equal to any other dollar, and one Bitcoin is equal to any other Bitcoin.

In the case of Ethereum, the Ethereum Classic backers claim that by rolling back the blockchain one ETH is no longer equal to one ETH. The rollback made the $70 million in ETH stolen not as good as other ETH, and deemed worthy of censorship.

Immutability means that a blockchain in unchanging and inviolable. The transactions that have been deemed valid are those which have been accepted by the network through the mathematical cryptographic protocol.

This allows transactions to be unquestioned, and if this is broken we have to consider that all transactions are now questionable, since a mutable blockchain means any transaction might be modified. This leaves the blockchain open to fraud, and calls into question all of the distributed applications running on top of the blockchain.

Why Ethereum Classic

Despite being overlooked by many, Ethereum Classic consistently has some of the largest blockchain network activity. The activity is on-par with that of Litecoin, and is greater than what we see from Bitcoin Cash.

Why Ethereum Classic
Why Ethereum Classic. Image via website

In addition to the network activity, Ethereum Classic also has a large number of commited developers. In fact, there are three different developer teams committed to the long-term vision of Ethereum Classic.

Added to all of this are numerous outside funding sources, and a commitment to creating a secure network anyone can use, which helps Ethereum Classic continue to grow a little more each day, each week, and each month.

Guiding Principles of Ethereum Classic

Ethereum classic is run on the principles of immutability, community, and technology. As the longest running smart contract blockchain in existence, you can have confidence that the Ethereum Classic blockchain will continue to exist as a store of value, not be swept away by some errant developers vision.

Ethereum Classic Technology

Ethereum Classic runs on the mathematically verified Ethereum Virtual Machine (EVM) and is a highly efficient means for transferring value and running Internet of Things (IoT) applications. All together this makes Ethereum Classic a highly efficient means of exchange that is capable of connecting all the world’s IoT devices.

In addition, Ethereum Classic has several developer teams working on improving the technology and creating partnerships that will spread Ethereum Classic usage to every area where blockchain technology can be beneficial.

Ethereum Classic Immutability

Any Ethereum Classic account cannot be modified by anyone but the owner. This is a philosophy shared by cryptocurrencies such as Bitcoin and Litecoin. Other blockchains use another philosophy known as governance whereby the holders of the cryptocurrency are able to use economic or social power on the blockchain to vote on changes that affect everyone’s account.

Ethereum Classic’s developers don’t believe in this model. Imagine if banks allowed account holders to vote on account changes based on how much money each person had in their account. It means the richest account holders could vote for changes that effectively took the money from the smaller account holders.

Governance is a system where the rich and powerful, those who have the most fame and notoriety, are the ones who have the final say over the monetary system. Ethereum Classic has been designed so that this will never happen.

Ethereum Classic Community

Even though blockchains are predominantly known as decentralized ledgers, the truth is that many have centralized communities and leadership. This means there are a relatively few number of people making decisions for everyone.

Ethereum Classic has been purposefully structured so this cannot happen. Development responsibilities are spread out among many different parties, which avoids the hidden centralization that other blockchains fall victim to.

The Thanos Hard Fork

The original intent of including a directed acyclic graph (DAG) in ethash coins like Ethereum Classic was to provide ASIC resistance for the mining protocol. The reasoning was to provide protection from mining distribution centralization ad to ensure that tokens are fairly distributed.

It’s been made obvious that the DAG is working based on ASICs being developed that are capable of matching current GPU mining rigs, while also being more energy efficient, and yet the playing field remains level as ASICs have not been able to take over and dominate mining. This has led to the growth of a large and diverse mining ecosystem.

However in 2020 the Ethereum Classic developers found that the original set parameters for the DAG were too aggressive, which led to the obseleting support for GPU miners still in use. The decision was made to recalibrate the parameters to better reflect the available hardware and Ethereum Classic mining ecosystem, thus bringing DAG growth back in-line with the most commonly used GPUs in mining.

This was the Thanos hard fork, and its purpose was to allow the DAG system to continue serving the purpose of providing ASIC resistance.

The problem was that the DAG size had reached 3.91 GB, effectively obsoleting the 4GB GPUs that are still widely used in mining rigs. The Thanos hard fork reduced the DAG size to 2.47 GB, and with the additional growth rate now added the 4 GB GPUs will remain supported through 2023.

ETC Hashrate

The Thanos fork has allowed for dramatically increased hashrate. Image via 2Miners.com.

As a result of the hard fork the hash rate on Ethereum Classic increased dramatically (from 4 Th to 6 TH) almost immediately following the fork. Almost 6 months later the hash rate has climbed dramatically and is sitting near 25 TH.

Improvements Proposals (ECIPs)

Ethereum Classic Improvements Proposals (ECIPs) are the technical proposals made to suggest changes to the Ethereum Classic network and protocol.

These proposals are discussed by the core and volunteer developers, as well as implementers and other users of the Ethereum Classic mainnet and if approved are then implemented into the protocol by the core developer team.

Each pull request can have input from anyone who has a well reasoned opinion. If the proposal isn’t accepted the feedback generated by discussions can be used to draft a second proposal that incorporates the feedback. This process can be repeated ad infinitum until the developer community agrees to add the pull request.

Those interested in seeing the change proposals can look at the full list at the ECIPs Github.

Adding an Ethereum Classic Treasury

Ironically enough, as of early 2021 there are some members of the Ethereum Classic community who are looking to add a Treasury to the project. I call this ironic because of the circumstances that led to the creation of Ethereum Classic, and the possibility of a similar occurence if a Treasury is created.

Indeed there are some who are fighting against the implementation of a Treasury, claiming that it will only bring centralization to the project. Instead, they argue that adding something along the lines of a 5-year “tax” to the network to obtain funding for ongoing development would be a superior solution.

The proponents of adding a Treasury do seem to be in the majority, and their proposal rests on the fact that Ethereum Classic has found increasingly difficult to continue development by relying on donations and volunteer developers. They also claim that adding a Treasury will promote diversification in the network, which would certainly be welcome.

In the case of critical consensus failures and bugs, a supermajority client can be a single point of failure that cannot be afforded. ETC experienced this first hand when the Parity family of clients split from the network during a 51% attack because it had different parameters for handling reorganizations and did not have technical support to maintain ETC compatibility. Parity had a share of around 50% of nodes which as you can imagine — was basically half the network lost in space.

A treasury with multiple core development teams inclusive of community voting would make sure no single entity can have a monopoly or franchise over the ecosystem. Of course, the community should have the power to remove and add members from the treasury. Eventually, the independent developers or anyone who has provided a successful proposal for that matter would be eligible to receive funding.

Those opposed to the Treasury system point out that it is important for the ETC community to understand that if ETC is to be a $6 trillion dollar system in the future; used globally by governments, corporations, international entities, and individuals from all cultures, regions, and backgrounds; it is imperative that Ethereum Classic be as decentralized as Bitcoin.

The only security model possible is the maximum security possibly attainable by a blockchain. Nothing less.

The only honest way to regard the treasury in ETC is to understand that, while the blockchain has that device to prop it up while it gains market share and liquidity, it is a centralized system under the guise of a blockchain. A community fiat system like all the networks that use proof of stake, treasuries, and voting.

Broader Project

Unlike many other blockchain projects, the development of Ethereum Classic is not under one single team. There is a core team under Ethereum Classic Labs, but there are other groups undertaking parts of the Ethereum Classic ecosystem. All these groups work together to further the growth and adoption of the Ethereum Classic protocol.

Ethereum Classic Labs (ETC Labs)

The team at ETC Labs is where the Core development team resides, and itprovieds the office space for projects as well as developing industry connections, and providing funding for the Ethereum Classic project.

Ethereum Classic Labs
Image via Ethereum Classic Labs

The ETC Labs has office space in San Francisco and Singapore and operates with the long-term goal of accelerating the development of all Ethereum Classic projects as well as supporting the Ethereum Classic ecosystem and community.

The ETC Labs Core team does the bulk of development for Ethereum Classic projects. It is also involved in supporting the needs of the blockchain and providing the necessary tooling for dApp development, mining and blockchain services. The ETC Labs Core team works under a mission statement that values backward compatibility, decentralization, and state immutability.

ETC Cooperative (ECC)

The ECC was created as a financial support for the development of Ethereum Classic. It provides funding for three key aspects of the Ethereum Classic ecosystem, namely marketing, development, and community.

To achieve their objectives they also act as a liason between the different teams, as well as maintaining some of the community-based software, and also reaching out to other Ethereum-based communities.

IOHK (Grothendieck)

This branch of the Ethereum Clssic development team is focused on creating a strong Ethereum Classic ecosystem, with immutability as the core foundation of the blockchain. The team primarily consists of math and science driven developers and engineers, some of whom have been with Ethereum Classic since the beginning.

IOHK Ethereum Classic
Image Source

The primary focus of the team’s development is the node client Mantis, which provides a simple connection to the IOHK Daedalus Wallet UI, so that users may easily manage their ETC tokens.

ETC Core

ETC Core delivers infrastructure tooling, specifications, and resources to the Ethereum Classic ecosytem. They strongly believe in high quality software, readability, and cross-chain compatibility. They maintain the Core-Geth client and the EVM-LLVM backend project, while actively participating in protocol research, upgrades, and events.

Other blockchain development and software engineering companies contributing to Ethereum Classic include:

  • Chainsafe
  • POA Network
  • Second State
  • Byzantine Fault
  • Godel Labs
  • Storj Labs

Community

As a fork of Ethereum, the second largest cryptocurrency, and with a history going back to 2016, it’s not surprising to see the size of some of the communities based around Ethereum Classic.

The largest of these is their Twitter presence, where they have 230,000 followers. They participate heavily on Twitter as well, with multiple daily tweets and re-tweets from other notable cryptocurrency projects.

The sub-Reddit for the project is also pretty impressive, with just under 25,000 followers. There is also quite a bit of activity here, with several posts on most days, and numerous replies to many of those posts. It is definitely a vibrant and active community.

A less active space is the Ethereum Classic forums, but that’s likely because people tend to gravitate towards the well-known sub-Reddit for their questions and discussions. Still, the forum has activity on a daily basis, and is far from defunct.

Last, but certainly not least are the Telegram and Discord channels for the project. The former has more than 6,200 users currently, and the latter isn’t far behind, with nearly 6,100 users.

The ETC Token

When ETC launched in July 2016 it was just under $1. The day after it launched it hit its all-time low of $0.452446 and hasn’t looked back. It quickly jumped higher, and reached $3.53 within a week. It couldn’t hold that level though, and slowly crept lower until trading back under $1 by October 2016.

It remained between $0.80 and $2 until March 2017, and then began a rally that saw it climbing in leaps and bounds over the coming months. By May it was over $7 and by the end of that month, it had topped $20. It continued around the $20 level for most of the summer of 2017.

By September it had cooled somewhat and spent the next two months trading between $10 and $12 for the most part. The rally resumed in November and ETC quickly climbed through the $20 level, then the $30 level, and the $40 level, finally hitting an all-time high of $47.77 on December 21, 2017.

After struggling to maintain higher levels, and briefly topping $40 again in February 2018 the token dropped, spending most of the next six months trading between $15 and $20.

From there it continued to trade lower, not bottoming until it got below $5 in early 2019. It was able to recover by June, nearly tapping $10 again. It slipped in July and August and as of September 2019 is trading at $6.30.

ETC Chart

The price of ETC has made an amazing gain in 2021. Image via Coinmarketcap.com

After that the price remained in a range of roughly $4 to $7 until January 2021, when a new broad based rally in cryptocurrencies sent ETC shooting higher. By May 6, 2021 the price had reached a new all-time high of $176.16.

However just two weeks later and price has retreated back to $69.73. While that’s roughly 60% off the all-time high for ETC it is also more than 1,500% above the starting price of $4.25 at the beginning of 2021.

Buying & Storing ETC

If you’re looking to purchase ETC it is available on nearly all the major exchanges, and most of the smaller exchanges as well.

Taking a look at the broader market volume, it appears to be quite high and well spread out across the range of exchanges. This means that the liquidity is not dependent on a single exchange which bodes well for the trading of the token.

Binance ETC
Register at Binance and Buy ETC Tokens

Taking a bit of a closer look on the individual exchange order books, they appear to be quite healthy. For example, on Binance the ETC / BTC order book appears to be quite deep and there is strong turnover here. Hence, there is unlikely to be a great deal of slippage on the orders.

Once you have bought your ETC you are going to want to take it off the exchange and keep it in a secure offline wallet. There are a number of wallets that support the token. We have previously covered a list of the best Ethereum classic wallets which will no doubt have the right wallet solution for you.

Development

While there has been a great deal about the development of Ethereum Classic in the press, are the actual results borne out?

One of the best ways to determine raw development output on an open source project is by taking a look at their public code repositories. Hence, I decided to move on over to the Etheruem Classic GitHub.

In their GitHub I took a look at the number of code commits that have been pushed over the past year. Below are the total commits to three of their most relevant repositories.

Ethereum Classic GitHub
Commits over 12 months to Select repos

As you can see, there has not been that much activity in these repositories. This is only a mere fraction of the code that is being pushed in the Ethereum GitHub. Admittedly though, there are way more developers working on Ethereum.

You also have to consider that a great deal of the Ethereum Classic development is taking place in other repositories like that of ETC labs for example. You also have a whole host of development that is being done on top of the Ethereum Classic protocol. You can head on over to their website and see all the projects building on it.

Conclusion

Ethereum Classic was created by a group of developers and community members who felt that Ethereum wasn’t staying true to the principles of decentralized cryptocurrencies when the leadership decided to roll the blockchain back in order to return stolen funds to users from the DAO hack.

While it seems noble on the surface, it undermines the very qualities of fungibility and immutability that cryptocurrencies are valued for.

Since the split from Ethereum the Ethereum Classic project has continued to grow and prosper, showing that it wasn’t just a whim that led the founding members to split from Ethereum. Whether it can continue to grow and expand its reach remains to be seen, and such a question is always a big unknown in the new frontiers of blockchain development.

While we aren’t certain Ethereum Classic brings anything new, other than its “Code is Law” philosophy, it brings enough that it can be one of the surviving blockchains once the inevitable consolidation in the space begins.

Featured Image via Fotolia

BakerySwap Review: DeFi AMM & NFT Marketplace

There are a growing number of decentralized exchanges following the automated market maker (AMM) protocol made so famous by Uniswap, and one of the more interesting out there is BakerySwap.

This particular AMM doesn’t just support yield farming and swaps, it also has its own NFTs and NFT marketplace. Plus it was created on the Binance Smart Chain (BSC) so it doesn’t suffer from the high costs associated with the Ethereum network.

What Is BakerySwap?

As we’ve mentioned above, BakerySwap is a DEX on the Binance Smart Chain that uses the automated market maker protocol. In addition to yield farming and swaps, BakerySwap is somewhat unique in supporting NFTs too.

Currently BakerySwap is one of the top DEXs on the Binance Smart Chain, although it is facing increasing competition as more AMMs are choosing the BSC for its lower costs and faster transactions. One of the contributing factors to the popularity of BakerySwap is the fact that it is the very first NFT DeFi platform created on the BSC.

BakerySwap

A DEX with a difference. Image via BakerySwap blog.

BakerySwap can be considered an NFT-Fi platform since it uses NFT tokens financially for yield farming. When BakerySwap was first launched it was possible to use its native BAKE token to mint a random NFT “combo meal.” These were unique NFTs that didn’t only serve as an NFT, but they could also be staked to earn additional BAKE tokens.

Currently minting new combos is not possible, however you can still find them listed on BakerySwap’s NFT marketplace. Additionally, BakerySwap has a more traditional NFT market where artists are free to list their NFT creations.

In a similar model to other AMMs there is a 0.3% transaction fee associated with the liquidity pools, and 0.25% of these fees go to the liquidity providers (LPs), while the remaining 0.05% goes to BAKE holders.

BakerySwap was developed and is run by an anonymous group of developers who use a decentralized autonomous organization (DAO) to provide the platform with governance. In line with the principals attached to this type of organization the team did not have any pre-sale of tokens, or tokens reserved for the team.

Instead the team shares in a ratio of 100:1 farmed BAKE. Basically this means the developers receive 1 BAKE for every 100 BAKE farmed. Anyone familiar with the developer fees attached to other DEXs and blockchain projects will know that this is a very low amount of tokens allocated for the development team.

Binance Smart Chain (BSC)

BakerySwap was created on the Binance Smart Chain as a way to avoid the high gas fees and slow transactions that have become the norm on the Ethereum network. This has created a high barrier for entry to decentralized finance, so BakerySwap hopes to improve the conditions for those who are new to decentralized finance.

The Binance Smart Chain was specifically created to enable blazing-fast, inexpensive transactions for smart contract based dApps and DeFi projects. This not only lowers the entry barrier for new DeFi users, it also makes it easier and cheaper for developers to get their projects into production.

Binance Smart Chain

Faster transactions and lower fees on BSC. Image via Coingape.com

You can find many new DeFi projects choosing the BSC over Ethereum to host their protocols. In addition to BakerySwap these also include PancakeSwap, the Spartan Protocol, and BurgerSwap.

While these platforms do have their individual differences they all share the common goal of bringing DeFi to everyone through the use of the BSC. And just like the dApps that run on Ethereum, the BSC dApps and protocols are easy to use and can be accessed through web3 wallets like MetaMask.

BakerySwap Key Metrics

BakerySwap is a fork of the Ethereum-based SushiSwap, just as PancakeSwap was. That means the tokenomics of BakerySwap are very similar to those found with SushiSwap and PancakeSwap.

This model incentivizes the liquidity providers of the ecosystem very heavily, which in turn attracts a large amount of liquidity and users to the platform. However this also means that these incentives need to be fueled through a highly inflationary BAKE block reward.

The team continues working on the tokenomics though, and has an ultimate goal of making BAKE a deflationary token in the future. So even though BakerySwap is currently battling inflation, it is necessary to help the protocol bootstrap its liquidity and user base.

BAKE Token Economy

There are several solutions to the problems faced by AMMs that have been implemented into BakerySwap. The most significant are the methods being used to combat the battle to constant inflation faced due to incentivizing liquidity providers.

The BakerySwap developers are answering this inflation by reducing the supply of BAKE while simultaneously boosting demand for the token. Of course this is far easier said than done, but so far the team is seeing success.

There are also plans to use the assets and merged contracts to develop even more products. The most recent of these has been the Bakery Gallery, a curated NFT platform for top emerging artists.

BakerySwap Improvements

The team is always working on innovating. Image via BakerySwap blog.

The following excerpt from the BakerySwap Medium outlines the DAO’s goals:

  1. Only rewarding $BAKE related pools to support $BAKE value.
  2. Leveling the liquidities of non-$BAKE related pairs from all the other swap exchanges AMM, instead of relying on $BAKE rewarding to attract the non-$BAKE liquidity providers.
  3. Making the BakerySwap AMM more user friendly and also including new features on making smart contracts with other tokens to be able to farm BAKE or consume them, which including the following strategies:
  4. Launchpad: projects may use any of the $BAKE pair LP tokens for fundraising, and after redeeming the LPs token, the corresponding $BAKE will be burned, and the other tokens will be distributed to the project team.
  5. $BAKE staking pools: users can stake $BAKE to farm new project tokens or assets within the projects.
  6. Paying with $BAKE — for partners selling their crypto assets on Bakery, they have to accept $BAKE payments and split the profit with us, and we will burn our shares of $BAKE.

It’s very good to see that the development team is aware of the problems they are facing, and that they’ve developed a plan to address those problems to remove of reduce them.

Earning with BakerySwap

Of course what everyone wants to know is how they can use BakerySwap to earn BAKE tokens. Depending on your risk appetite and the amount of capital you have for investing there are three primary means of earning on BakerySwap.

BakerySwap Earnings

Earn 3 ways with delicious baked goods. Image via BakerySwap blog.

The first basic method for earning is to provide liquidity to one of the BakerySwap liquidity pools. This allows the LPs to earn fees and BakerySwap Liquidity Pool (BLP) tokens.

Secondly the users are then able to take those BLP tokens and stake them to earn more BAKE tokens, or other limited edition tokens. Which they earn depends on what pool they choose to stake the tokens in since there are both BAKE pools and pools with other rewards. The top pools are those named after baked goods such as the ‘Doughnut’ (BNB BLP) pool and the ‘Waffle’ (BUSD BLP) pool.

Besides the liquidity provisioning and token farming users can also stake their BAKE tokens to earn even more BAKE. This is accomplished in the ‘Bread’ pool (more baked goods!) and it has no minimum staking amount or any lock-up period.

Users are able to stake a number of other tokens as well to earn BAKE. Currently staking to earn BAKE is enabled for CAR, POKER, SOCCER. It’s also possible to stake BAKE tokens and earn other tokens such as TKO, TSA, and SACT. Or BAKE tokens can be staked to earn NFTs that can then be sold on the BakerySwap marketplace, or even taken to other NFT marketplaces like OpenSea and Rarible.

BakerySwap NFT Supermarket

The BakerySwap NFT Supermarket is not only a unique offering for a DEX, it also offers users an exciting array of NFTs from some of the top emerging artists in the space. Some of the early popular NFTs offered include ‘Musk & DOGE’ and the gamification NFT categories such as ‘Battle Weapons’ and ‘Rare Cars’.

Note that some of these categories are offered only for a limited time, making the NFTs more rare. Users can find a wide range of digital artwork, and there are many pieces that feature the BakerySwap donut logo. Cats and dogs are also popular subjects, and there are many unique and interesting abstract pieces as well.

NFT Supermarket

There are hundreds of NFTs in the marketplace, with dogs and donuts some of the most popular. Image via BakerySwap Marketplace.

Inside the NFT Marketplace, in terms of artworks, you can find:

  • BSC Artists for new promising Artists.
  • Featured Artistsfor selected quality and consolidated artists.
  • Meme Contestsfor cobranded activities with partners, or directly NFT issued by them.

And beyond digital art, you can also find lots of gamification and NFT + DeFi solutions like:

  • Game Items from different partners like Battle Pets.
  • DeFi NFT, like $SOCCER, $POKER or the new BSC Games Box.
BakerySoccer

Gamification items are extremely popular. Image via BakerySwap.org

Purchasing these NFTs is downright easy too. Any web3 wallet that supports the Binance Smart Chain can be used, and many people favor either the Binance Wallet or MetaMask. MetaMask is great because it can be used to interact with a number of different platforms while maintaining control over private keys.

Purchasing an NFT at BakerySwap using MetaMask can be accomplished in just a few clicks. All the NFTs are purchased using BAKE tokens, so you would need some of them if you’re interested in a BakerySwap NFT.

And some of the special NFT categories like ‘Battle Pets’ will allow you to burn the NFT and receive either BAKE or PET tokens in return. Of course you can expect this will be less than the amount spent on the NFT, although it is possible you could purchase an NFT for less than its ‘burn back’ value.

There’s also the ‘BSC Artists’ section which allows anyone to upload their own artwork and tokenize it by minting their own NFT. The process for doing this can be accessed within the NFT Marketplace by clicking the button “Mint Artwork’, filling in some details about the piece and the artist, and uploading the artwork.

Once that’s finished simply click the ‘Mint’ button and your artwork will be tokenized on the BSC blockchain and available for sale within the NFT marketplace. This is something anyone can do to earn passive income from BakerySwap.

BakerySwap Bakery Gallery

The Bakery Gallery is the newest feature that’s been added to BakerySwap. Bakery Gallery is a curated platform of digital artwork in NFT form that is attempting to attract the most talented artists by featuring their work, while also attracting the most sophisticated and discerning NFT collectors and investors.

Bakery Gallery

The Bakery Gallery will highlight the best NFT artists. Image via BakerySwap blog.

Bakery Gallery is focused on giving exposure to featured artists, which are the base of Bakery Gallery. It is also designed to attract more talent to BSC via organizing Top Quality Drops.

Bakery Gallery has 3 main sections:

  1. Upcoming Drops: With info about Drops coming to BSC.
  2. Featured Artists: With the profiles of our selected artists.
  3. Artworks: With the same NFT Supermarket current features.

Bakery Gallery is differentiated from other curated art platforms, in that there’s no focus on social media following to select artists, but instead the focus is on strict talent. A group of professional curators is helping Bakery in this passionate journey to attract the most talented digital artists.

BakerySwap Combos

When BakerySwap first launched they added the ability for users to create ‘Combos’, which were the first NFTs on the platform that could also be used for staking to earn more BAKE.

After a short while, to maintain the rarity of the Combos, BakerySwap pulled the ability to mint new combos, although existing combos can still be sold in the marketplace.

BakerySwap Combos

No longer coming soon – Combos are here. Image via BakerySwap blog.

Yet the team soon saw that people were not willing to part with their combos. Not only were they unique, but they also provide very high staking power and BAKE rewards. So there weren’t many combos being listed in the marketplace, and most new BakerySwap users had no ability to acquire combos.

So the team reopened combo minting for a month, from February 20, 2021 through March 12, 2021. During this time period users were once again happily able to mint new combos.

Combos come in four different tiers: basic, regular, luxury, and supreme. The level of the combo is determined by the amount of BAKE used when minting the combo, and higher levels provide increased staking power.

Lucky users have been able to mint combos with high staking power for a relatively low cost. These can provide excellent staking rewards, or they can be sold for hefty profits.

Combo Types

The four combo types. Image via BakerySwap blog.

One of the features of the BakerySwap combos is the ability to decompose them. This is something that can’t be done with ERC-721 NFTs. Decomposing results in the destruction of the combo, while the user receives up to 90% of the BAKE used in the creation of the combo back. There may be cases where it is better to decompose a combo rather than selling it on the open marketplace.

  • The following outlines information regarding combo creation for the BakerySwap team:
  • Combo Staking Power = R * B
  • R = a random number generated when composing a Combo
  • B = the amount of BAKE contributed for composing a Combo
  • The reward multiplier for Bakery Combo is 10x.

‍BakerySwap Launchpad

BakerySwap isn’t only limited to liquidity pools, and exchange, and the NFT creation and marketplace. There is also a crypto token Launchpad component to BakerySwap.

This token issuance model is beneficial for the projects, for investors, and for the token launchpad itself. And BakerySwap has created a next generation launchpad as well.

Launchpad

The launchpad has been wildly successful. Image via BakerySwap.org

Besides offering up the ability to launch ERC-20 and BEP-20 based tokens the Launchpad at BakerySwap gives the ability to launch new NFT projects. Thus BakerySwap has taken the token distribution model and used it to the benefit of the entire community.

Launchpad tokens can be purchased using the BUSD stablecoin and everyone who holds BAKE tokens is eligible to participate in the initial DEX offerings (IDOs).

The basic token distribution model uses a ratio of 100 BAKE:1 BUSD. That means for every 100 BAKE held by a user 1 BUSD worth of new tokens or NFTs can be purchased. The project has seen success using this model, with a number of successful projects (Battle Pets and DEFI100) launching under these terms. However there has been another model used in the launch of certain projects.

The Spartan Casino IDO used a model where users were able to purchase the Spartan Casino WAR tokens at a ratio of 1:1 for BAKE and BUSD. That allowed a user with 100 BAKE to purchase 100 BUSD worth of WAR.

There was also a maximum investment of 10,000 BUSD set on the IDO to encourage broader participation. The IDO went off in March 2021 and was an overwhelming success.

Spartan IDO

The Spartan IDO was the first under the new IDO. Image via BakerySwap.org

In fact, the IDO model at BakerySwap has been so successful that some IDOs have been fully subscribed in under two seconds. This is why BakerySwap found it necessary to change their IDO rules so that only BAKE holders can participate, and the maximum buy-in is 10,000 BUSD.

The BAKE Token

As mentioned previously there was no pre-sale and no pre-mine of the BAKE token because the team is fully interested in the fair and equal distribution of all BAKE tokens. In addition, the BakerySwap team receives just 1 BAKE token for every 100 BAKE tokens farmed. This allows BakerySwap to pay liquidity providers some of the highest yields of any AMM or DEX by far.

As originally envisioned the full release of BAKE tokens would have been completed in just 11 months, however based on community feedback an adjustment to the emission schedule was made in March 2021 which significantly lowered the amount of BAKE being issued as rewards.

The daily amount of BAKE issued was dropped to 250,000, where it will remain for 9 months. After that rewards will be halved every 9 months by adjusting the reward multipliers of the pools and creating a reserving pool for the farming after BAKE emissions stop in the initial contract.

This means that, after approximately 24 years of emissions, the Total Max Supply in circulation will be 270M. Any future policy changes could only decrease that total amount, never increase.

In terms of price, the BAKE token has come a long way in 2021. After trading between $0.01 and $0.02 throughout 2020 the price began rising along with the broader market in 2021.

After a rally in February took the price to $2.69 there was a pullback that basically erased half the gains made. The token them rallied again in April, hitting an all-time high of $8.48 on May 2, 2021. Again the token is pulling back and has given back almost half the gains to trade at $4.82 as of May 13, 2021.

BAKE Chart

The price of BAKE has skyrocketed in 2021. Image via Coinmarketcap.com

For those looking to get their hands on some BAKE tokens and starting to use BakerySwap, Binance is the place to go, with nearly all the trading volume in the token occurring on that platform.

BETH Liquidity Mining

Another exciting addition at BakerySwap is the ability to participate in Ethereum staking. While there’s huge excitement around Ethereum 2.0 and staking ETH, the issue many face is the requirement for a minimum of 32 ETH in order to become a validator. Most people simply can’t afford this large investment.

BETH Staking

Get around the 32 ETH minimum by staking BETH at BakerySwap. Image via BakerySwap blog.

Binance is getting around this through the introduction of BETH on both the BSC and Ethereum networks. This innovation gives holders 100% of the on-chain staking income without requiring a minimum of 32 ETH. Thus it gives everyone access to Ethereum 2.0 staking. Plus, on the BSC only BakerySwap is offering BETH as one of the very first adopters of this token.‍

Conclusion

BakerySwap is clearly an improved version of the AMM DEX built on the Binance Smart Chain. Besides offering faster transactions and lower fees, it also has a number of innovations that can’t be found at other DEXs, such as NFT creation, an NFT marketplace, NFT staking, and an IDO launchpad. BakerySwap has rapidly been able to position itself as one of the leading AMM DEXs.

As of May 2021 BakerySwap continues growing rapidly as interest in DeFi, and particularly the cheaper, faster DeFi provided by the BSC, continues growing massively. Plus there are new developments in the pipeline, including NFT aggregation and decentralized derivatives trading.

Anyone interested participating in the DeFi space should definitely take the time to investigate using BakerySwap as it looks like it will only get better in the coming months.

Featured Image via Shutterstock