Blockchain has provided us with more innovation than we could ever hope for. In fact, the innovative products are so high in numbers that there’s strong competition in the market.
But an Automated Market Maker (AMM) on the Binance Smart Chain (BSC) cut through all this competition to emerge as the winner. It was none other than PancakeSwap. This Decentralized Exchange (DEX) platform rose to fame by providing an exceptional experience to its users. It helped popularize yield farming on the BSC network.
This is the first time we’re seeing an automatic liquidity acquisition yield farm on BSC. And as you might expect, people talked a lot about it. In this article, we’ll go through the basics of PantherSwap.
If terms like AMM, DEX and IFOs are confusing to you, then you need to check out our articles on cryptocurrency basics.
But before we get into it, here’s a quick rundown of everything you’ll find in the article. Feel free to jump to any section that interests you.
- What is PantherSwap?
- What is Automatic Liquidity on PantherSwap?
- What is Automatic Burning on PantherSwap?
- How does the Harvest Lockup system work on PantherSwap?
- What is the Anti Whale policy on PantherSwap?
- How does the Deposit Fee Redistribution system work on PantherSwap?
And with that out of the way, let’s dive right into it!
What is PantherSwap?
PantherSwap is a Binance Smart Chain (BSC) based automatic liquidity acquisition yield farm. And it happens to be the first one on BSC.
The AMM decentralized exchange (DEX) offers its users plenty of unique and creative features. You can interact with the platform by staking, yield farming, or providing liquidity. If you’re feeling more adventurous, you can always take part in an initial token offering.
Alternatively, you could simply use the DEX for swapping tokens.
Let’s take a closer look at the features of the platform to understand it better.
What is Automatic Liquidity on PantherSwap?
PantherSwap levies a 5% transfer tax on every transaction that takes place on the platform. Out of this, 40% goes to the PANTHER-BNB liquidity pool with the help of a smart contract.
This is how the platform automatically adds liquidity to one of the liquidity pools.
It is worth mentioning here that the liquidity added this way (that is through automatic liquidity acquisition), will be locked using a PantherLocker contract.
And how often does that happen? Well, the automatic liquidity transfer to PantherLocker takes place on a weekly basis.
What is Automatic Burning on PantherSwap?
Remember the 5% transfer tax we talked about earlier? While 40% of that goes to add liquidity to the PANTHER-BNB liquidity pool, the remaining 60% has a different destination. It goes straight to the black hole address. Now, in case you’re wondering what the black hole address is, it’s 0x000000000000000000000000000000000000dEaD.
If you are not familiar with the concept of burning tokens, let me explain it in as simple terms as possible.
Since tokens aren’t physical objects, they can’t really be burned. So controlling the flow of tokens is rather difficult. Sure, you can keep a tab on how many tokens are going into circulation while minting them. But once the tokens are minted, controlling the number of tokens in circulation is impossible—or is it?
To remove tokens from circulation, you need to send those tokens to a special address, the private key to which is unobtainable. Doing so would render them useless, preventing everyone from using those tokens.
So, essentially, those tokens would be removed from circulation.
The black hole address we just talked about is one such special address. When 60% of the transfer tax goes to this address, there is no way for anyone to use those tokens. And that, essentially, burns them.
How does the Harvest Lockup system work on PantherSwap?
Harvest lockup limits the frequency of harvests to prevent pump and dump on the farms. It is a creative and unique farming rewards lockup mechanism that has been created by the development team of PantherSwap.
“Pump and dump” is not a rare sight in the crypto world. We see it happening all the time. Someone would shill a coin and everyone would invest in it. And when the initiator feels like it, they would sell their share of the coin. Crypto whales manipulate the market in a similar way.
So it makes sense why the platform would have a system in place to keep a check on arbitrage bots. After all, they could harvest and dump constantly—which is unfair for the rest of the traders on the platform.
By limiting the frequency of harvests, it ensures that even those bots would have to wait for a certain number of hours before they can harvest or dump.
Now, a thing to be noted here is that we are only talking about the farming rewards here. You can withdraw your tokens and LP tokens at any given point in time without having to worry about the farming rewards.
What is the Anti Whale policy on PantherSwap?
In the world of crypto, whales are individuals (or organizations) holding a large number of tokens of a cryptocurrency. This puts them in a powerful position. They can manipulate the market in any way that they seem fit to. This leads to quite a lot of price volatility.
To prevent the whales from manipulating the price of PantherSwap in the market, the platform has put a system in place. If you’re transferring more than 0.15% of the total supply, your transaction would be rejected. As the total supply of the PANTHER token in the market sees an increase, this ratio is decreased.
That said, depositing tokens to farms or withdrawing them is limitless. You can deposit or withdraw any amount without getting into a problem.
How does the Deposit Fee Redistribution system work on PantherSwap?
When the users participate in farming on PantherSwap, a 4% deposit fee is levied on them.
Out of this, 25% goes straight to the development team as a part of the development fund. This ensures that the platform keeps on improving.
The remaining 75% is redistributed to the holders of PANTHER tokens via the Jungles farming method. Sounds weird? Don’t worry, it is just a farming pool that allows PANTHER holders to stake their tokens in order to earn other tokens.
As of now, the platform only has WBNB Jungle, but we can certainly hope to see more Jungles in the future.
Before you go…
Being the first automatic liquidity acquisition yield farm on the Binance Smart Chain (BSC) puts a lot of pressure on PantherSwap. And the hype certainly doesn’t help.
That said, the team has done an excellent job of building a rewarding platform. PantherSwap is good at not only helping people earn, but also at helping people enjoy its wide range of features.
What happens to the platform is something only time can tell. But for now, PantherSwap is doing great. And if they follow the roadmap present in their whitepaper, there is no doubt that it will bring quite a lot of innovation to the DeFi space.