bSWAP V2 Tokenomics Under Atom Foundation — New Management
The new bSWAP is a wholly decentralized governance and reward token created to encourage LPs and investors to grow BSCswap with liquidity and holding.
In this paper, the original bSWAP token is referred to as the old bSWAP or bSWAP version 1 (v1). The currently supported, new, bSWAP token is referred to as bSWAP version 2 (v2).
Upgrade: bSWAP Version 1 vs Version 2
The original bSWAP, v1, did not hold any true value and was based on speculation. The Atom Foundation is changing the foundation of bSWAP to a swap token based more on use cases. All holders of the old BSwap v1 token can swap it at any time 1:1 with the new bSWAP v2.
Temporary display and swap: https://elementzero.network/bscswap_upgrade/
In order to maintain a DAO and community based project, bSWAP v2’s supply functions to execute DAO votable changes to the BSCswap platform.
The bSWAP v2 supply does not include a presale or VC money, does not allocate a team supply, and focuses solely on adding value to the ecosystem.
The initial minting of bSWAP v2 is 20,000.
- 2,281 bSWAP added to the liquidity pool bSWAP<>BUSD
- 10,000 allocated to the APY flexible staking program
- The remaining supply goes to swap any v1 bSWAP users have in pools
bSWAP v2 requires strategic minting based on trading fees and conversions for the original token. This does not mean it is minted by the push of a button, and is not manipulatable by voting, rather minting only occurs when the smart contract receives a v1 token or authorized token with the exact same face value (1:1). The minting is meant to benefit all token holders, including LP’s and encourage users to swap v1 for v2 or to increase the liquidity with zero discount, slippage, or implementation.
Flexible 10% APY Staking
Staking rewards are paid by block, simply by holding tokens in your wallet. Any token sent to the flexible 10% APY staking contract (which is 0x0000000000000000000000000000000000000000 address) is not burned control by a private key. There it is considered a burned token and cannot be recovered back for trading without the staking smart contract (not even by voting).
In order to provide incentive to hold bSWAP, Atom Foundation implemented a DeFi staking contract directly into the token. This allows bSWAP to provide flexible staking rewards without having users lock the token on an external smart contract.
For holding bSWAP, investors will receive more bSWAP sent to their wallets every block. Binance Smart Chain blocks range in time from approximately 3–5 seconds.
bSWAP holders will be able to hold their bSWAP in any decentralized wallet to earn more bSWAP every few seconds. The initial APY is 10%. As a DAO, this APY can be changed by a votable percentage.
The BSCswap platform swap fee is 0.3% and is adjustable through DAO voting.
LP and Community Benefit
Fees support bSWAP and the ecosystem through a buyback of bSWAP tokens. The fees also support rewards associated with the staking program and to the LPs. This facilitates a circular economy that provides value to those seeking to swap their bSWAP for other tokens.
- 0.24% directly back to the community (80%)
- First 100% of the fee is pushed into the bSWAP pool to buyback bSWAP
The communities reward is split as follows:
- 50% of the received bSWAP goes to all users through a flexible 10% APY staking program
- 50% of the remaining bSWAP goes to LPs in the pool
0.06% Management Fee (20%)
- 50% of the fee is pushed into the bSWAP pool to buyback bSWAP
- 50% stays as BUSD
The smart contract combines the two and distributes the LP to the BUSD — bSWAP pool
A component of growing bSWAP and increasing fees requires more trading to occur on the BSCswap platform. Therefore, Atom Foundation has created a gamified and decentralized incentive program to boost trading volume. Each time user’s swap and incur a fee, an equal amount of bSWAP is minted by the smart contract and sent to the Lottery which can be won by users.
Swap fee split
Daily = 50%
Weekly = 30%
Monthly = 20%
Yearly = 10%
The swap fees split in the lottery are a votable percentage in the bSWAP DAO.
Lottery Based NFT
bWIN Reward Token
The bWIN token allows the Atom Foundation to provide rewards for traders utilizing BSCswap for their swap volume. This bWIN token is used to participate in the Lottery but can also be sold on the secondary market.
BSCswap utilizes the bWIN token and rewards traders for every $100 they swap on BSCswap.
User A trades a $50 value on BSCSwap on 12/13
User A trades a $50 value on BSCSwap on 12/14
User A receives 1 bWIN (which can convert to a lottery ticket)
NB: This amount is cumulative and does not need to take place in a single transaction
The ratio between bWIN token and swap are a votable percentage in the bSWAP DAO.
The bWIN is used to purchase an NFT ticket for a lottery of the user’s choice. Winners are picked at random.
The Lottery system will host random drawings daily, weekly, monthly, and yearly. In order to participate, users need the required number of bWIN tokens to swap for tickets.
Number of tickets required to participate:
Number for bWIN for 1 ticket
Daily = 1
Weekly = 2
Monthly = 3
Yearly = 4
The ratio between bWIN per ticket is a voteable percentage in the bSWAP DAO.
Winner’s can choose between the lump sum payout or monthly installments for 1 year.
- Winners that select the lump sum option are charged 50% of their bSWAP winnings. The 50% bSWAP vacated by this selection is burned.
- Winners that select monthly installments, will receive a 0% burn fee and equal distributions of their winnings across 12 months.
Token Use Cases
In order for a community to benefit from a native token, it must have utility in the platform it powers.
Liquidity is important to AMMs like BSCswap. Because of this, extra care is placed on LPs that stake their liquidity on BSCswap. The farm allows users with LP tokens to stake their tokens to harvest bSWAP v2.
APY rewards are distributed pro-rata based on the actual time period the LP staked in the farm. So, when users withdraw from farming, they do not incur a fee, rather they simply receive the current amount of pro-rata rewards they’ve earned.
- Stake LPs -earn-> bSWAP
- Pro-rata APY, no extended lock times
- Open to all issuers and DAOs
In order to open an LP farm, the issuer must purchase enough bSWAP first and provide them to the smart contract. Once this is executed, the Farm will open and LPs can provide their LP tokens to receive an APY reward.
In order to open an LP pool, projects need to choose the pair [for example: JNTR <> BNB]
- Next they need to deposit bSWAP and choose the APY
- Whoever deposits LP will receive the APY until it is sold out
BSCswap supports two types of pools:
- Stake tokens to earn bSWAP
- Stake bSWAP to earn tokens
Those two pools allow users to stake for the term that best fits their needs while also allowing early withdrawal without any penalty on principal.
Pools include the ability to stake tokens to earn bSWAP as well as to stake bSWAP and earn tokens.
Stake tokens to earn bSWAP
BSCswap understands the importance of liquidity to the community. So to increase bSWAP liquidity, BSCswap users can stake any type of tokens they own, as long as those tokens have a pool with enough liquidity in the platform. At the end of the staking period, those users will receive back the principle in a form of BUSD plus the bSWAP reward.
This type of staking increases the bSWAP lquidity, since the original tokens that users staked was swapped to BUSD while the the smart contract mint equal face value of bSWAP and push them both into the bSWAP pool as liquidity.
At the end of the staking period the smart contract will pull out the BUSD and the bSWAP from the pool and will return to the users the BUSD along with the eligible bSWAP based on the APY promised while the rest of the bSWAP will be burned.
Here is how it works:
A smart contract swaps the [token] into BUSD while simultaneously minting an equal value of bSWAP. The BUSD and bSWAP are pushed to the BUSD <> bSWAP pool as liquidity.
Launch Pool process and fees
Since all the reserved tokens need to be swapped into BUSD, therefore only the BSCswap smart contract can open or limit the amount of staking in a pool.
Users staking there tokens, may be subject to slippage between the staked token to BUSD that needed to complete the process
Stake bSWAP to earn tokens
The bSWAP community benefits from fee free staking in order to earn new tokens through the stake bSWAP option under pools. This is an airdrop alternative that allows projects to introduce their tokens to new users building a long term relationship instead of the traditional airdrop model which encourages dumping.
Rewards are distributed every block to alleviate the rush in and out mentality surrounding airdrops.
How projects open a pool to reward users
- Deposit the project native token (the reward) into the pool smart contract.
- Choose the APY and the period time
- Users stake their bSWAP in order to get the reward tokens
- Rewards distribute on daily basis to the users staking bSWAP in the contract
Initial Farm Offerings
Currently in the DeFi space, projects utilize pools to boost their project then withdraw liquidity, hurting investors and the token price. Initial Farm Offerings “IFO” have proven to be a means for a project to grow and raise funds in a way that does not hurt their early adopters.
The Community Backstop
New projects cannot open a pool below $10,000 total liquidity and must burn the LP key in order to launch IFO. Following the principles of decentralization, the first step to protecting the community against exit scams is to burn the LP key to the pool.
Types of IFOs
Similar to a traditional offering, DAOs can simply set a fixed price to their offering. This process allows investors to instantly engage with the money and the user benefits from buying the tokens without a slippage.
Projects can host a Dutch auction allowing the market to dictate the offering price. Users are also protected from price manipulation, since the funds and tokens are distributed at the end of the auction after verifying that the total investment is no more than the total supply face value. This verification means users do not pay more than the token market price.
Another advantage of the Dutch auction to users is a potential discount since projects must give away the total supply for sale once the soft cap has been reached and the time period ended.
- A project has 10,000,000 tokens to give with a hard cap of $100,000 ($0.01 per token) and a soft cap of $10,000
- Once the time period is over and assuming the soft cap of $10,000 is reached, the smart contract will give away the tokens, even without hitting the hard cap
- If a total of $10,000 is invested, the smart contract will distribute the 10,000,000 tokens on a pro-rata basis, making the price $0.001 per token
Users can participate in the IFO only if the invest with bSAWP-BNB LP tokens. While project will receive the BNB but the bSWAP will be burn
IFO Launch Fees
Projects can choose between three different fee models
1,000 BNB with 0% bSWAP burn
- The BNB fee is split 20% for the treasury and 80% is pushed to the bSWAP-BNB pool with the receiving bSWAP going to the staking pool
500 BNB with 50% of the bSWAP from the sale burned
- The BNB fee is split 20% for the treasury and 80% will be push to bSWAP-BNB pool with the receiving bSWAP going to the staking rewards pool
Projects can also pay nothing up front but then lose 100% of the received bSWAP from the sale. The bSWAP is split 20% to the treasury and 80% is burned. The bSWAP in this scenario represented half (50%) of the total funds fundraised to the project
The Binance Smart Chain Welcome Bonus is a great resource to help BSC projects expand their reach to the powerful Ethereum community. As the focus is also to grow bSWAP, fees collected from projects launching a Welcome Bonus will directly support bSWAP.
Welcome Bonus Launch Fees
Three (3) payment options are presented to projects:
- $10,000 upfront + no ongoing fee
- $5,000 upfront + 12.5% ongoing from funds raised
- $0 upfront + 25% ongoing from funds raised
All funds are collected and distributed in a decentralized manner through smart contracts. When they are collected, the smart contract utilizes the funds to split 20% to the treasury and 80% to purchase bSWAP from the market. The bSWAP purchased is redistributed to the community as rewards.
The fee structure is voteable by the DAO.
BSCswap will allow LP from other swaps (such as pancakeswap or even cross chain uniswap) to convert their LP with one click to bSWAP-BNB LP. This migration process helps increase the bSWAP liquidity as it first will be required to buy bSWAP from the pool.
Full governance capitalities with a list of DAO votable items coming soon.
Why a management fee?
The future of the DAO is dependent on strong development support and community trust. The guardians of the DAO must upkeep the code and community in a transparent manner that benefits everyone. Since we done zero pre-sell, no VC funds, it’s important to built it right by By utilizing a fee that first provides a buyback to the community then stores it as liquidity until needed, the value for community managers, developers, and designers increases giving greater incentive to be their best while always acting in a fashion that benefits the entire community.
November 28, 2020 NB: BSCswap is hiring devs, the platform will benefit most from full-stack at this time.
- Remove private key ownership
- Increase DAO liquidity
- Clean and well noted code
- Developments should support the buyback and reward concept
- Everything should be voteable
- Inclusive builds
- More additions as the team expands