From its very first day, the blockchain industry has been bringing a lot of innovation to the table. What stands out the most among these is Decentralized Finance (DeFi).
The DeFi space has given rise to a whole range of tools that have allowed ordinary people to see blockchain as an investment vehicle. It has allowed us all to think beyond the traditional assets and build portfolios with decentralized assets instead.
If you want to experience the next level of innovative solutions in DeFi, then check out bDEX.fi. A flagship product from the bEarn.fi team, bDEX is an automated market maker built on the Binance Smart Chain (BSC).
From smart routing for the best exchange rates to the smallest price impact on the market, this platform provides a refreshingly new experience to its users. Another interesting feature is that it connects with other Decentralized exchanges such as the PancakeSwap or SushiSwap to borrow liquidity. Interesting isn’t it?
Here’s a quick look at what’s in this beginner’s guide to bDEX.fi:
- What is bDEX.fi?
- What is bEarn.fi?
- The Treasury
- Gaming Aggregation
- Algorithmic Stablecoin
- Yield Generation
Now, let’s dive right into it!
What is bDEX.fi?
bDEX.fi (or simply bDEX) is a quick and smooth decentralized exchange built on the Binance Smart Chain (BSC). Launched by the bEarn.fi team, this platform claims to provide a novel and incomparable experience in the DeFi space.
The automated market maker uses smart routing for providing the users of the platform with the best possible exchange rates. The smart routing used by the platform also ensures that the slippage and the price impact on the market remain as low as possible.
bDEX borrows liquidity from other DEXes on BSC such as PancakeSwap and SushiSwap. This provides the platform with the ability to swap most of the tokens on BSC despite having lower liquidity. It also enables the platform to launch pools.
Quoting the bEarn.fi team, this allows “its users to find the most efficient swapping routes across all platforms”.
For every trade that happens on the platform, bDEX charges a 0.20% trading fee. If you’ve been trading even for a short while in the DeFi space, you would realize that it is the lowest in the market. A whopping 70% of this fee goes to the reserve fund while 30% is distributed amongst the liquidity providers.
Now, you might be wondering what the purpose of this reserve fund is.
To start with, a major chunk of it goes to bEarn Eco profit (40% to be precise).
Then there’s the 20% that goes to the bDEX stakers room. The bDEX stakers room is a vault built to stake BDEX tokens for earning extra profits. The rewards in this vault are compounded automatically.
Moving on, we have 20% of the fee going straight to either burn BDEX tokens or to be used for the buyback.
Finally, 20% of the fee goes to participating project owners who provide liquidity on bDEX. But, if these funds are not owned by any projects, they go straight to bEarn eco profit.
This distribution takes place on a weekly basis.
What is bEarn.fi?
The bEarn.fi ecosystem resides on the Binance Smart Chain (BSC) with a wide range of cross-chain products.
At its core, the platform provides a treasury, gaming aggregation, an algorithmic stablecoin, governance on multi-chain (BSC and Ethereum), one of the most popular activities in the DeFi space—yield generation, and the latest addition that we just talked about—the decentralized exchange bDEX.
Let’s take a look at what each of these is all about:
Almost every platform in the DeFi space has something similar to a treasury on it. If not, in the exact terms, the concept can be seen on most of the platforms. And bEarn.fi has one that is controlled directly under governance.
The reason why we have a treasury on the platform in the first place is that there’s a lot of different ways in which you can lose money in the DeFi space. And I’m not talking about the scams. I’m talking about the minor errors that you can find in the nooks and crannies of most of the platforms in the industry.
A treasury can provide you with coverage should you ever encounter these errors and end up losing some of your money because of it. As long as it is the smart contract or protocol’s fault, and you are on either the Ethereum blockchain or BSC, rest assured because the treasury has got your back.
Newcomers in the industry take quite a while to trust the platforms. And they have a good reason for that. After all, everything about these platforms is new to them and the feeling can, at times, be a bit overwhelming for them.
Knowing that there is a treasury backing you up in case you encounter a bug that makes you lose money really helps build the much-needed trust.
You’ve heard people say this over and over across the industry and I’m sure I’ve said it multiple times on this platform: Do not invest any money you can’t afford to lose!
I know you’re bored of listening to it but trust me, people end up investing vital resources into it and end up losing all of it due to bugs in decentralized apps (dApps). The only thing that can save such users is a treasury – which bEarn.fi graciously provides.
Next up, we have one of the most distressed groups on the Ethereum blockchain – gamers. If you’re a gamer who either still plays real-time games on Ethereum or has ever played one on the blockchain, you know just how many issues pop up.
Over the years, the Ethereum network has gotten slow due to the increase in network congestion. And the number is still on a rise since most newcomers to the blockchain industry are bedazzled by the innovation that the network churns out regularly.
Moreover, the gas fee can be pretty high sometimes. And I’m sure you would agree that it is definitely not one of the best feelings ever.
Put two and two together and it isn’t difficult to see why gamers are flocking away from the Ethereum network. The experience really does become an unpleasant one when you’re met with these issues.
What bEarn.fi does to fix this issue is that it allows users to freely play the games available on both BSC, and the Ethereum blockchain.
Since bEarn.fi functions on BSC, it makes use of the benefits that BSC provides. Being relatively new, BSC has pretty low network congestion. The gas fee, too, is on the lower end.
So the gamers don’t have to face the issues of network congestion and high gas fees associated with the Ethereum network when they’re on bEarn.fi.
This cross-chain functionality that bEarn.fi is able to provide helps gamers make the most out of the real-time games they play. It isn’t difficult to see why more and more people turn to the platform every day.
Algorithmic Stablecoin (bDollar)
When it comes to BSC, bDollar is the first algorithmic stablecoin on the network. The multi-token protocol takes inspiration from Basis as well as its predecessors.
The bDollar protocol consists of three tokens: the BDO token, the sBDO token, and the bBDO token.
Most users wouldn’t get to know of any of the tokens apart from BDO since it is the algorithmic stablecoin the bDollar protocol is known for.
For claiming BDO inflation when the network expands, you have the bDollar Shares (sBDO) token. If you’ve ever been into shares or the traditional share market, in general, you can easily draw parallels between the two.
And finally, we have the bDollar Bonds (bBDO) token which can be purchased at discounted rates when the network contracts. You can then redeem them for BDO when the network deflates and the price dips to go below $1.
Governance on bEarn.fi works pretty much as it does in the other blockchain ecosystems. The holders of the BFI token and the BFIE token have the right to submit and vote on proposals. And when the proposals find majority support, they end up governing the ecosystem.
An additional requirement for these proposals to be accepted is the need to have upwards of 30% tokens staked in the governance contract. Upon meeting both the requirements, the platform processes the proposals and brings them into action.
For yield generation, bEarn.Fi has the BSC Vault which is a dApp built on BSC. The dApp has a high annual percentage yield (APY) with its contract code accessible by anyone who wants to access it (since it is open-source).
It works in a simple way. It starts by looking at the opportunities that are present in the market. Once done, it automatically chooses the best ones and generates yield based on them.
Being the first and most advanced yield-farming aggregator on BSC, bEarn.fi does a great job at providing the best possible yield to users.
Adding to the benefits that you receive from BSC Vaults is the fact that they have a low gas cost for the transactions done with them. This helps the depositors get the maximum amount of profit they can get against their investment.
So an average person like you and me can potentially earn quite some passive income with minimum effort and without knowing too much about DeFi or the protocols and principles that govern it.
Before you go…
The world of blockchain is an ever-changing one. With products such as bDEX.fi, it is only going to get better.
Even though the platform is new, it has already started garnering community support. Granted, a lot of that comes as a direct result of it being a part of the bEarn.fi ecosystem. Still, the platform is bringing in a lot of innovation and that is all the reason people need to support it.
It is too early to say what the future holds for bDEX.fi. But if the current state of progress on the bEarn.fi ecosystem is any indication of what is to come, it is safe to say that bDEX.fi would not end up disappointing the community.