Swap Currencies: Burger Swap, Uniswap and Pancakeswap

BurgerSwap is a DeFi protocol running on the Binance Smart Chain (BSC). It allows you to swap between tokens issued on BSC, and earn rewards for providing liquidity to these decentralized markets.

Unlike other similar DeFi projects like Uniswap and SushiSwap, you won’t find the usual Liquidity Provider (LP) tokens on BurgerSwap. Instead, everyone who provides liquidity to eligible pairs receives BURGER tokens that represent their share of the pool.

What is BurgerSwap?

BurgerSwap is a DeFi protocol built on the Binance Smart Chain (BSC). BurgerSwap works as a decentralized exchange (DEX) that adopts the automated market maker (AMM) model. Similar to PancakeSwap, BakerySwap, and other protocols, it allows users to earn tokens by providing liquidity.

Connecting MetaMask to BurgerSwap

Before connecting your MetaMask wallet to BurgerSwap, you need to connect your wallet to the Binance Smart Chain. If you don’t know how to do that, check out Connecting MetaMask to Binance Smart Chain.

Next, go to the BurgerSwap homepage (https://burgerswap.org). Click the “Connect Wallet” button. Make sure you switched from the Mainnet Ethereum network to Binance Smart Chain.

After connecting your wallet, you will be able to see and navigate across the BurgerSwap products (Swap, Pool, Governance, Bridge, etc.).

How to use BurgerSwap

On BurgerSwap, you can swap many BEP-20 tokens (i.e., crypto assets that are running on the BSC). You can find a list of available pairs here.

For instance, if you want to trade BNB for BURGER, you can go to Swap, insert the amount of BNB to be swapped, and click the Swap button.

Make sure to check the Price Impact, Transaction fee, and the other details before swapping your tokens.

How to add liquidity to BurgerSwap Pool

Any user can provide liquidity (add tokens) to the BurgerSwap platform. These tokens can be used to create a new liquidity pool or be added to an existing one.

To provide liquidity, navigate to the Pool tab, click “Add Liquidity,” and choose the token pair. Note that you will need to click the Approve button before adding liquidity to the pool and make a blockchain transaction. This transaction allows your tokens to be used by the BurgerSwap contracts. After that transaction has gone through, you can proceed with adding liquidity.

When you add liquidity to a pool, you receive BURGER tokens proportionally to your pool share. Please refer to BurgerSwap guides for detailed information.

BurgerSwap Governance

The BurgerSwap Governance tab is where you can stake your BURGER tokens. You need to stake BURGER to create new governance proposals or to vote on existing ones.

BurgerSwap Cross-Chain Bridge

Since BurgerSwap runs on BSC, you can only trade or provide liquidity using BEP-20 tokens. However, BurgerSwap offers a Cross-Chain Bridge service that allows you to convert any ERC-20 token into a wrapped BEP-20 version (bTokens). This is similar to how some of the tokenized Bitcoin on Ethereum are created, but in this case, the conversions happen between ERC-20 and BEP-20 tokens.

You’ve probably noticed that the Burgerswap exchange has many assets that aren’t native BSC tokens, such as BTC, ETH, BCH, or XRP. These can only be traded on the BSC network because they were converted into BEP-20 tokens – either via Bridge (bTokens) or via Binance withdrawals.

Keep in mind that you might need to alternate your MetaMask network between Ethereum and BSC blockchain during the process. Also, bTokens can only be traded if there is enough liquidity provided to their respective BNB and BURGER pairs (bToken/BNB and bToken/BURGER). This is why it’s important to keep an eye on Price Impact before approving a trade. Trading pairs with low liquidity will likely incur a high amount of slippage on your trades.

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Farming BURGER

BurgerSwap offers BURGER, USDT, and BNB rewards. Users can farm tokens in two different ways: by providing liquidity and by participating in governance.

Anyone that provides liquidity to BurgerSwap will receive BURGER tokens proportionally to their share of the pool. As long as they keep providing liquidity, they are eligible to receive rewards.

As of November 2020, BurgerSwap charges 0.3% trading fees on all pairs, and a portion of those is allocated to liquidity providers. They also receive a share of the BURGER generated in each new block.

Alternatively, users can receive rewards by participating in the governance of the project through the voting system.

In addition, BurgerSwap has a burning mechanism that destroys a percentage of BURGER acquired from the trading fees.

In summary, the reward allocation rates are:

40% of the rewards are allocated to liquidity providers on the platform.
30% of the rewards are allocated to participants in governance/voting.
30% of the rewards are burned forever.

The rates are subject to change as new users make and vote for new proposals.

Is BurgerSwap safe?

Blockchain security company Beosin has audited the first version of the smart contract in September 2020. As of November 2020, there have been no reported issues with BurgerSwap.

However, depositing money into a smart contract is always risky, as there may be bugs that didn’t get noticed during the code audit. You should never deposit funds that you can’t afford to lose.

Closing thoughts

BurgerSwap was one of the first DeFi projects to be launched on the Binance Smart Chain. Despite its similarities to other platforms, BurgerSwap offers unique features, such as the cross-chain bridge and the governance system.

Do you still have questions about yield farming and staking? Check out our Q&A platform, Ask Academy, where the Binance community will answer your questions.

PancakeSwap

The Binance Smart Chain answer to SushiSwap

PancakeSwap is a decentralized finance application running on Binance Smart Chain. Looking past the creative name, PancakeSwap is fundamentally Ethereum’s SushiSwap running on the Binance Smart Chain with the bonus of quicker and cheaper transactions for users.

As one of the earliest blockchains supporting smart contracts, the bulk of DeFi activity has been focused on the Ethereum blockchain. Its huge community of users and developers has proven to be an excellent starting point to create powerful decentralized applications (dapps).

However, surges in interest towards the back end of 2020 and the start of 2021 mean that the spotlight has been shifting away from Ethereum applications. Essentially Ethereum has become a victim of its own success in the DeFi space, as gas prices have risen to all-time highs, and as a result, forcing users to look elsewhere for better value transactions. Binance Smart Chain and DeFi dapps in their ecosystem are reaping the rewards.

Using PancakeSwap

At this point, it is essential to understand that a blockchain wallet is required to interact with Binance Smart Chain and PancakeSwap. Furthermore, any users familiar with the layout and design of Sushiswap will instantly feel at home on PancakeSwap.

Get either the Binance Smart Chain wallet or use Metamask.
Add Binance Smart Chain as one of the networks in Metamask, following the steps in the video below.
Once the wallet has been set up, users can trade on PancakeSwap.
Users need to provide liquidity to earn rewards, while PancakeSwap also allows users to easily swap one BEP-20 token for another. More about these options below.

PancakeSwap Exchange

PancakeSwap is a decentralized exchange for swapping BEP-20 tokens similar to Uniswap or SushiSwap and uses an automated market maker (AMM) model. Simply put, that means that users can trade digital assets on the platform. Importantly, there isn’t an order book and Instead, users trade against a liquidity pool.

Those pools are filled with other users’ funds. They deposit them into the pool, receiving liquidity provider tokens in return. They can use those tokens to reclaim their share, plus a portion of the trading fees. In short, you can trade BEP-20 tokens, or add liquidity and earn rewards.

Farming & Staking on PancakeSwap

A significant trend in 2020 and continuing is yield farming and PancakeSwap also allows you to farm its governance token – CAKE. Users can deposit liquidity provision (LP) tokens, locking them up in a process that rewards users with CAKE. The list of LP tokens accepted is long but a few major ones are:

CAKE – BNB LP
BUSD – BNB LP
BETH – ETH LP
USDT – BUSD LP
USDC – BUSD LP
DAI – BUSD LP
LINK – BUSD LP
TWT – BNB LP

Users can also earn by staking their CAKE in SYRUP pools after they have deposited funds to receive LP tokens and used them to farm CAKE. From there, users can stake CAKE and earn other tokens through special staking pools.

Further specific details about both farming and staking activities can be found here. The biggest SYRUP pool is for CAKE, where you can stake your CAKE to earn even more CAKE, but there are several other tokens you can earn by staking CAKE as well.

UniSwap

Uniswap is a decentralized finance protocol that is used to exchange cryptocurrencies. Uniswap is also the name of the company that initially built the Uniswap protocol. The protocol facilitates automated transactions between cryptocurrency tokens on the Ethereum blockchain through the use of smart contracts. As of October 2020, Uniswap was estimated to be the largest decentralized exchange and the fourth-largest cryptocurrency exchange overall by daily trading volume. In March 2021, Uniswap was generating fees of approximately US$2–3 million daily for the liquidity providers who facilitate liquid markets for the cryptocurrencies being exchanged.

Uniswap forecast 2021–2025: will the trend continue?

There was no way around Uniswap (UNI) in the crypto world in the recent past. The decentralized exchange made a name for itself especially in the course of the hype around decentralized financial services (DeFi) in 2020. Uniswap is not a standalone project on its own blockchain, rather it is a decentralized application (dApp) on the Ethereum platform. At its core, Uniswap sees itself as a decentralized trading platform that enables the exchange of Ether (ETH) into a variety of ERC-20 tokens. While many other DEX (Decentralized Exchanges) struggle with not being user-friendly, expensive, and risky, Uniswap was able to nip all of these issues in the bud.

Finally, in September 2020, the native governance token UNI also launched, which caused a sensation. The token of the decentralized exchange has always been a popular speculation object, as it is directly in line with the success of the exchange. Therefore, we dedicate ourselves to the historical and future performance of the token in our Uniswap forecast 2021 to 2025. For this purpose, we evaluate, among other things, the forecasts of leading experts for long-term price predictions.

This is what moves the UNI price in February

The start of 2021 was extremely successful for UNI. The bulls were able to free the token from a corridor in which the price had been stuck for several months. UNI already showed the first signs of an upcoming price increase at the turn of the year. There, the value of the token rose abruptly from 3.50 to over 6 US dollars for the first time in a long time. Subsequently, UNI recorded further price increases. Especially in the middle of January 2021, after the bulls cracked the psychologically important hurdle of 10 US dollars for the first time. In February, the resistance of 20 US dollars finally fell and UNI recorded a new all-time high.

Uniswap on record course

Uniswap continues to chase from one record to the next. By now, the decentralized exchange is the fourth largest spot trader for cryptocurrencies. In the decentralized exchange space, Uniswap is already #1 by a wide margin, with over 300,000 unique active addresses as of December 2020. Uniswap is the destination of about 20 percent of all Ether transactions, which shows the importance of the exchange on the Ethereum platform. The average size of trading positions is equivalent to $1,200. Currently, about 70,000 users provide liquidity on the platform. According to its own statement, the exchange’s protocol is integrated into 200 applications.

What’s behind Uniswap (UNI)

Uniswap is one of the largest decentralized applications on the Ethereum Blockchain. The advantages, which helped Uniswap to triumph in record time, are quickly told. User-friendly operation and integration of an external wallet (for example, MetaMask), full control over one’s own private keys, low fees and comparatively high liquidity (unlike many other DEX). Uniswap is also considered a showcase project, as a finished and fully functional end product was ready after only a short development time. The development time was just half a year and consumed only $100,000 in investment capital. Nevertheless, the small investment of time and money quickly made Uniswap the most popular and reliable decentralized exchange.

The still increasing popularity can be explained by the implemented incentive system in the smart contracts that map the exchanges — but more on that later. As a decentralized trading platform, a third party, which acts as an intermediary in centralized exchanges, is removed from the equation. In a trade, a user always exchanges his tokens with a smart contract, which handles the exchange and sets the respective rate. This simplicity is what makes Uniswap so popular, and an exchange requires only the selection of a currency and an amount. The acquired tokens can be automatically added to the connected (MetaMask) wallet. The user has full access to his private keys via this and is responsible for security on his own. This is a great advantage over central trading places, which retain the private keys and there is always the risk of a hack.

The basic function of Uniswap is thus clear. But where does the liquidity of the exchange actually come from and what function does the UNI Token actually have? We want to answer these questions below.

Uniswap: Yield by providing liquidity

The first thing to understand is that the tokens offered for exchange do not come from Uniswap itself, but from other users. Anyone can pay their tokens into a so-called liquidity pool. But what advantage would that have? The trading platform grants 0.3% of the transaction costs as a return to anyone who contributes to the liquidity. Such a liquidity pool is to be understood as a kind of pot, which bundles the deposits of the users. Depending on the deposited assets, Uniswap divides the incurred transaction fees among the liquidity providers. Thus, those who hold ETH or other ERC-20 tokens that they do not need for a certain period of time can deposit them on Uniswap and receive a return in return.

The committed crypto assets can be withdrawn from the liquidity pools at any time should the holder need the tokens. The asset-based is correlated to the available liquidity of a trading pair. Therefore, it is not possible to say across the board how much return a trading pair will yield. On the other hand, up-to-date information on the return investors can expect for a specific trading pair can be obtained from various sources at any time. However, it is important to note that a liquidity provider foregoes possible price gains during the storage. If the value of a token drops dramatically, for example, the generated return may not compensate for the price losses incurred, resulting in no worthwhile investment overall.

UNI — that’s what’s behind the token from Uniswap

In mid-September 2020, the UNI token celebrated its global launch. A real hype quickly developed around the governance token. This was mainly because the decentralized exchange rewarded its existing users and liquidity providers with the new token. Those who used the exchange by a certain date were credited with a certain amount of the UNI Token. Within days of its release, the token rose to the top 40 largest coins by market capitalization. Users who provide liquidity on the trading platform through the UNI Token can earn additional tokens and thus engage in liquidity mining.

Basically, however, the token is a pure governance token. Voting rights are dependent on the UNI assets held. The token allows participation in fundamental development decisions. In the long run, the Uniswap team completely withdraws from the decision-making processes and all votes are taken by the community alone. UNI can be traded on various exchanges. Major exchanges, such as Binance Overview Exchange , Huobi, Bitfinex and KuCoin, were already involved at launch. Currently (as of 02/2021), UNI is ranked 15th among the largest cryptocurrencies by market capitalization in Coinmarketcap’s ranking.

Uniswap forecast: this is how the UNI token developed

As mentioned earlier, UNI enjoyed great success shortly after its release. Many users of the platform enjoyed 400 UNI Tokens, which they received completely free of charge for using the decentralized exchange. The token’s price quickly skyrocketed and just one day after its release, the price reached an all-time high, which was valid for almost 5 months. In January 2021, the price managed to surpass the price high from September 2020 for the first time. Between January and February 2021, the price rose by over 350%. The all-time high valid at the time of this article is 22.36 US dollars from February 10, 2021.

Uniswap forecast 2021 to 2025: what the experts say

Although the governance token of the decentralized exchange is still quite young, it is already attracting a lot of attention. Reason enough to take a closer look at the Uniswap forecasts from the leading experts in the field of long-term price predictions. However, these forecasts should be taken with a grain of salt due to the volatile crypto markets. The price predictions are used to form opinions and should not be the sole criterion for buying.

Digitalcoinprice: UNI to be worth three times as much in 2025

The experts at Digitalcoinprice consider UNI to be a successful investment. In the long term, they assume that the price could triple. They expect the price to rise to around 30 US dollars as early as 2021. In the following two years, this trend will continue and the value of the token will increase by 40 percent. In 2024, Digitalcoinprice forecasts a price of $52.47. Finally, in the last year of the forecast, UNI has more than tripled in value with a price of 62 US dollars.

Walletinvestor: UNI with price explosion in the future

Walletinvestor believes that even the price increase during the bull market in the spring of 2021 is just a drop in the bucket. Already for the year 2021 they expect a doubling of the price to over 40 US dollars. In the following year, the token’s value could repeat the trend from the previous year and double again. In 2023, Walletinvestor then forecasts a relatively leisurely rise to just over 100 US dollars. A year later, the price will rise by 28.5%, culminating in a price of around 135 US dollars. In the last year of the Uniswap forecast, the experts finally predict a price of 166.04 US dollars.

CoinPedia: bullish outlook for UNI

CoinPedia compares the forecasts of other experts with its own analyses and finally forms a price prediction. The experts expect that the UNI token could rise sharply in value. For 2021, CoinPedia sees a price of about $35, which is similar to the expectations of the previously mentioned analysts. In the following years, a steady price increase is predicted, but not quite as strong as forecast by Walletinvestor, for example. At a point in time not mentioned in the near future, CoinPedia predicts a price of $75. This would make UNI a very good investment for long-term investors.

Summary: Uniswap’s success could boost UNI’s price

Uniswap is one of the shooting stars of 2020, with the decentralized exchange enjoying great success and rivaling its large, centralized siblings in daily trading volume at peak times. In September, the trading platform released its governance token UNI, which was distributed to users of the platform. The token’s price quickly rose, but could not overcome its initial all-time high for a long time. This finally changed in 2021 when the token’s value rose during the bull market.

Many experts see UNI as a profitable investment, even in the long term. Each of the Uniswap forecasts we evaluated expects at least a tripling of the price. In any case, the token’s success is closely tied to the future development of the decentralized platform. If the positive trend continues in the future, UNI could indeed be a strong investment.