What is BOTSwap?
A decentralized exchange BOTSwap is an exchange that:
- operates on the basis of a distributed registry;
- does not store funds and personal data of users on its servers;
- works as a platform for finding matches on apps for the purchase or sale of users’ assets.
Trading on such platforms works directly between participants (peer-to-peer) without any financial intermediaries.
Moreover, our BOTSwap is planned to be not just an exchange. There also will be farming, staking and viewing coin charts options. In addition, our DEX will work with several networks, unlike many other similar DEXs.
For simplifying the process of exchanging a decentralized exchangeBOTSwap will rely on the help of the foundations. BOTSwap will operate on the farming option in order to guarantee simple and quick transactions online. Traders deposit their tokens for any period of time they want to. We guarantee liquidity on the exchange and opportunity for users to earn daily rewards. When a farmer offers liquidity on the exchange platform, he gets commission for the transaction that comes from the trader, who gets access to liquidity.
Farmers can provide their assets for a long or a short term. However, rewards that the farmers get rely on how much they loan.
Tokens that are earned from farming may be also used to get rewards from staking.
Farming is the process of making a profit from tokens placed in a liquidity pool to support the trading process for a particular pair of assets. DEXs act as an instrument in placing orders to buy or sell tokens, and liquidity pools are a kind of exchange’s smart contracts. Thus, placing assets in the pool the farmer receives a percentage of the transaction fees that were charged to traders who have access to liquidity.
The percentage is calculated depending on the share of the investment. For example, when one trader places $ 20,000 to the USD / BOT pool and the second trader — $ 10,000, the total pool is $ 30,000. The share of the first trader is about 66%, and for the second trader it is about 33%. Rewards are calculated respectively. Thus, due to liquidity it becomes possible to sell and buy assets within the pool. The amount of profit in this case depends directly on the demand for the token.
Staking involves storing tokens on the Proof of Stake (PoS) algorithm and thus supporting the work of blockchain. For this users receive a percentage of transaction fees. The idea of staking is that it makes it possible to receive new blocks using less power. Also staking provides network operations — the support of the network. For this, the user who places the tokens will receive a reward.
In the case of BOT, the staking percentages are as follows:
- Lock for a month: 5% in $BOT
- Lock for 3 months: 20% in $BOT
- Lock for 6 months: 50% in $BOT
- Lock for a year: 120% in $BOT