I believe that the recent market has made many people feel tormented again. If you sum up the current cryptocurrency market in one sentence, it can be said: Bitcoin market is unstable and most DeFi project is in an awkward state.
On the one hand, Bitcoin dropped from a minimum of 37,000 US dollars at the beginning of the month to 31,000 US dollars, and then violently rebounded by 6,000 US dollars to form a V-shaped reversal. However, many investors have been unable to resist the market shock and the dealers have no choice but to get out of the car. On the other hand, after a series of high APY projects on BSC, Heco, and Polygon broke out one after another, DeFi mining projects seem to have reached a stage of failure.
How can I still play in this state? I also had a headache at the beginning, until recently I accidentally tried to participate in a new defi project BabySwap.
BabySwap and unique ILO
Let’s briefly introduce BabySwap. According to the official definition of itself, BabySwap is the AMM+NFT decentralized exchange that is the best choice for new projects on the Binance Smart Chain, providing a more friendly trading experience and more thoughtful support services. , Focusing on the long tail altcoin market that has long been overlooked by Binance Smart Chain .
What attracted my attention at first was the first ILO liquidity issuance activity launched by BabySwap . The most common estimates are IDO and IFO. ILO is BabySwap's original issuance mechanism . Specifically, before BabySwap starts full mining, users add whitelisted tokens (252, including all items from the head to the waist of BSC) to BabySwap’s liquidity pool within 24 hours of the platform’s launch, and obtain LP, Stake LP on the ILO page to earn 1% (10 million) BABY rewards of the total circulation, so as to complete the distribution of tokens in the process of drainage. The initial offering price of BABY is USD 0.1.
Another interesting point is that BabySwap will set rewards with different coefficients according to different items. For example, the reward multiplier of CAKE is 100 times multiplier, and there are a total of 1 million BABY rewards. At the final settlement, the proportion of your liquidity in the CAKE liquidity pool determines the number of BABY rewards.
The liquidity pool of BabySwap is the default USDT exchange path. It is estimated that many people, like me, still choose to hold USDT in the stable currency field, but the default trading channels on BSC such as PancakeSwap are BNB or BUSD. Once USDT is used, there will be two transaction fees and slippage losses, except The cost issue is not conducive to the arbitrage between CEX and DEX.
After learning about the relevant highlights of the project, I decided to try BabySwap's ILO, thinking that the project passed the CertiK audit , and there must be no problem with security. Anyway, I still have some cake in my hand.
BabySwap ILO yield
It was after the ILO that I became very interested in the subsequent mining play of BabySwap, which led to the discovery of a new opportunity.
BabySwap mining types
The mining mode of BabySwap is divided into trade mining (Trade Mining), liquid mining (Yield Farm) and single currency pledge mining (Snack Pool) . BabySwap’s economic model shows that each block produces 20 BABYs, and the daily output is about 576,000, of which transaction mining and liquidity mining each account for 40%, and single currency pledge mining accounts for 20%. The mining reward rules of the stage will be decided based on community voting.
I believe everyone is familiar with transaction mining. Fcoin's transaction mining has set off a wave before. Recently, MDEX has also risen strongly through transaction mining. The transaction fee of BabySwap is 0.30%, and there are currently 28 trading pairs available for trading and mining. In the transaction mining mode, every transaction can be rewarded with BABY.
My friend strategy is to trade BABY-USDT in the trading mining mode. Because the amount of funds is not large, I personally used ILO BABY income for single-currency pledge mining at the earliest.
At present, the APR of BABY single currency pledge mining on BabySwap is as high as 606.26% . In contrast, the APR of CAKE single currency pledge on PancakeSwap is only 77.47%, and the difference in income is self-evident.
I realized that the most profitable strategy on BabySwap is the BABY-USDT LP liquidity mining. The reason is that BabySwap is different from other projects' special empowerment.
As mentioned above, the transaction fee of BabySwap is 0.30%, but this 0.30% is not owned by the project. Among them, 0.15% is rewarded to LP; 0.05% is used to buy back BABY and burn it for deflation; 0.05% is used to buy back BABY and used as a growth fund to fund projects through the funding plan; the remaining 0.05% will be sent to the BabySwap treasury.
Everyone may not have a concept of 0.15% of the transaction volume as a handling fee. The current 24-hour transaction volume of BABY-USDT is up to 11.84 million U.S. dollars. The daily transaction volume of the DEX platform on BSC ranks third, after CAKE and MDX. BABY-USDT LP has a single-day dividend of up to US$17,760. As of June 16, BabySwap's average daily turnover has reached 10 million U.S. dollars, and LPs can get an average of 15,000 U.S. dollars in commission rewards per day. And this is only the BABY-USDT transaction BabySwap of achievement start in less than ten days.
On the other hand, in the extremely volatile market from May to June, the overall trading volume of DEX has also increased relatively. According to Debank data, several high-performing DEXs on BSC during this period, MDEX and PancakeSwap's average daily transaction volume is at the level of 1.5 billion U.S. dollars, 1inch is at the level of 100 million U.S. dollars, and DODO is at the level of 50 million U.S. dollars. Near the level. If BabySwap can achieve the above-mentioned DEX average daily trading volume level (tentatively set at 100 million U.S. dollars) in the future, then the total daily dividend of LP will be as high as 150,000 U.S. dollars.
Excluding the advantages of commission rewards, BabySwap liquidity mining itself has very considerable benefits. Also compared with Pancakeswap, the current APR of BABY-USDT on BabySwap can reach 610.56%, and even the APR of CAKE-USDT, BAKE-USDT, WBNB-USDT can be up to 150%-200% . The liquidity mining APR of several mainstream currency trading pairs on PancakeSwap is basically less than 100%. A few high-yield liquidity pools also have corresponding currency risks.
Of course, I still want to express my strong appreciation for BabySwap's adoption of USDT as a listed trading pair. Personally, the user experience is too good.
In general, BabySwap is a DEX, but it is also a link between new projects and users, which provides a guarantee for them to participate in a decentralized world and enjoy DeFi dividends at a low threshold. The recognition and participation of users will further feed back the development of BabySwap and the increase in the price of BabySwap.
Taking into account the above factors-such as the sustainable development of BabySwap itself, and the future Grants (more project growth incentive fund plan), vBABY (membership certificate NFT, enjoy fee discounts and other rights), NFT (NFT mining) , Trading, asset fragmentation), Games (Lottery, Prediction) and other products will help the project increase its visibility and valuation, and the value of BABY can be further captured.
In terms of BABY's performance, its initial price was $0.1. After it went online, it rose from $0.1 to $0.4, and then fell back to below $0.1. This is not unfamiliar to everyone. After ILO is over, a large number of people will inevitably choose to dig and sell, and the low market capacity can easily reach the low level. However, after BABY’s liquidity mining was launched, there were also larger and smarter funds that chose to purchase BABY for pledge or liquidity mining, thereby raising the price of BABY to the highest level when the market plummeted in the beginning of June. US$0.55, an increase of 550% from the initial price.
BabySwap can achieve a spiral increase in its own development, and the price of BABY currency will also rise accordingly.
