Bakery’s new way out in DeFi innovation
AMM exchanges as the DeFi concept have attracted most of the attention and funds from the crypto world recently. But it has been cooling down for the last 2 months. Many reasons have caused the current market trend and everyone was wondering what they are. The BakerySwap team has some thoughts on it.
What are the problems of the current AMM exchanges’ platform token economy?
1. Inflated supply and endless rewards given to non-stakeholders
Platform tokens are usually used to reward liquidity providers, who are more inclined to sell for cash after obtaining those tokens from farming. Especially in the condition that they farm the platform tokens (e.g. Sushi, BAKE, CAKE, Burger) using the mainstream token pairs (e.g. ETH/BUSD) , a large amount of sellings of the farmed tokens with no cost causes token prices to collapse.
2. Lack of consumption scenarios
Platform tokens are distributed to liquidity providers from farming, while other consumption scenarios of them are very limited. Users can only choose to sell them on the exchanges. If these tokens can be given other consumption scenarios, they will have much better value support.
BakerySwap Solution: Strategies to evolve $BAKE token economy
In order to overcome the critical problems above of AMM, BakerySwap team presented a solution to turn token inflation into deflation, in a word, reducing the supply and increasing the demand. Additionally, the charm of DeFi is its openness which enables the possibility to use assets and contracts of other applications to create more valuable products upon them, rather than competing against them with enclosed applications.
Therefore, we have the following plans to reduce $BAKE rewarding to non-stakeholders by leveraging other applications, as well as to create more value for $BAKE holders.
1. Only rewarding $BAKE related pools to support $BAKE value.
2. Aggregating the liquidities of non-$BAKE related pairs from all the other swap exchanges, instead of relying on $BAKE rewarding to attract the non-$BAKE liquidity providers.
3. Constructing Bakery devs ecosystem to attract more innovative projects to use $BAKE to farm other tokens or consume $BAKE, which including the following strategies:
3.1 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.
3.2 $BAKE staking pools: users can stake $BAKE to farm new project tokens or assets within the projects.
3.3 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.
- BakerySwap AMM released — Sep. 12
- Bakery Voting Launched — Sep. 16
- Bakery staking pool added — Sep. 18
- NFT Combo and Combo farming launched — Sep. 29
- BakerySwap NFT Supermarket launched — Oct. 9
- BakerySwap Launchpad launched — Oct. 15
- 1st IDO completed on Launchpad — Oct. 23
- Improving NFT related functions, such as staking $BAKE to farm NFT, NFT biding system and auctions
- GamiFi functions, raffles and rewards for completing some interesting tasks based on $BAKE
- Launchpad and Bakery devs ecosystem to power $BAKE
- AMM, NFT data analytics and token price charts
- Margin trading and derivatives