So, in the last article, we told you in detail about the Biswap platform.
To put you on the track in two words:
Biswap is one of the best swap/farming/staking platforms in the decentralized finance sector
Then we briefly talked about the history of the project, its possible prospects in the cryptocurrency market (at that time, the Biswap administration had not yet passed the audit from Certik) and briefly talked about the tokenomics behind the project.
We’ve also elaborated and clearly demonstrated the whole process of buying a coin and the subsequent farming of BSW coins in order to increase their number, we told you guys what kind of launchpools and staking options there are.
Perhaps you are thinking…
How is the project doing now?
It’s doing more than fine
Since the administration seems to be very enthusiastic about their project, the audit has long been passed, and more than six new coins for staking have appeared in the Launchpool section – we’ve realized that it’s time to publish another article with a detailed review of all the updates and improvements made.
So, kick back, make yourself a tea, and let’s get to it!
Firstly, once again – Biswap successfully passed the long-awaited audit, which means that the best audit firm (Certik) did not find any vulnerabilities in their smart contract. So at the moment, it’s safe to say that the platform is certified and it’s been officially confirmed that Biswap is definitely not a scam.
Second, Biswap now has several staking options. In addition to the farming of the native Biswap token (BSW), the developers have launched several more pools.
Now, if you wish, you can farm the following coins on the platform:
We’ve also received a huge number of questions about how Biswap works, why does the price of a coin fluctuates, why does the APR (and APY) percentage fall, etc.?
So, we’ve decided to dwell on each of the most popular questions in detail.
Why is the price of the BSW coin falls?
The fall in the price of the token is our “payback” for the high profitability.
Those who entered the project at the very beginning were farming more than 25% per day in the first days (if you’ve familiarized yourself with our previous article on Biswap, you may be one of those lucky bastards….just saying).
Of course, as soon as the project became more famous (after various listings and advertisements), newcomers who came to the platform began to farm at 250-300% APR, not even knowing that those who were at the very beginning of the project earned more than 7000% per annum.
The smart contract of each project specifies the number of coins created per block.
It also describes how often each new block is created.
So, in Biswap at the moment, 30 coins are created in one block and 1 block is created every 3 seconds. In other words, imagine that 30 coins just fall from nowhere – of course, that alone will inevitably affect the price drop.
Simple math shows that thirty coins in one block equal 864,000 thousand BSW coins per day, which are distributed among all coin holders (who do not just hold but continue to farm and stake these coins).
This is a fairly large amount, and even in order to keep the price of the coin at zero, it is necessary that more than 500 thousand dollars are invested on the platform every day (that is, an equivalent number of investors entered, capable of generating such amounts) at the current price of the token.
And this is only if all those who farm sell their coins (although many, on the contrary, reinvest, including me).
Now back to the “human factor” – why did the price rise initially?
The price of a new token is growing at all promoted platforms at an early stage due to the big hype and, accordingly, the demand for the coin.
The number of potential investors is growing due to the high APR in the beginning because everyone wants to “farm” a huge amount of coins as soon as possible.
Thus, they buy the coin and do not withdraw it, continuing to reinvest while the percentage of farming remains high.
Thus, large and frequent investments and a long hold naturally lead to an increase in prices, while the percentage of APR and APY is steadily… falling.
It falls because a large number of new investors come to the platform, which leads to a decrease in the percentage of payments.
As soon as the percentage falls, at some point, there is a period of profit-taking.
People see that the percentage is going down and some part of the investors begin to withdraw coins, “unstaking” them from the liquidity pool in order to sell profitably (as long as the price remains high).
This, in turn, leads to a massive price dump and, seeing already a fall in the token rate, other investors are also selling off their BSW assets.
This is where a tricky mechanic comes into play. Now hear us out:
As soon as people sell coins, the price of the token falls, but at the same time, the APR PERCENTAGE GROWS.
It naturally rises because there are fewer people on the platform now.
Thus, even despite the token price dump, it becomes more profitable to farm new coins on the platform, which again… attracts new investors.
How does that magic formula sound to you?
In the tokenomics behind the Biswap project, it is indicated that a total of 700,000,000 BSWwill be created, which suggests that the BSW token is deflationary, that is, with a decrease in the number of coins in the long term, its value will only increase (good news for long-term holders).
Currently, thirty coins are issued per block, but from September 1 onwards, two fewer coinswill be issued (every 3 seconds), which will lead to the fact that from December 2023 only twelve coins will be issued per block, which will inevitably lead to an increase in the value of the token (i.e. increase in price).
We hope that now you understand the mechanism behind the fall and rise in the price of the token.
By the way, it should be noted that the percentage of coins in the admin’s possession is rapidly decreasing. At the early stage of the project (even before successfully passing the audit from Certic), the percentage of coins held by the project administrator was more than 90%.
At the same time, the NUMBER of coins itself did not decrease.
How is this possible, you may ask?
The fact is that the coins (at least from one wallet) were not sold, here the usual math just worked: with almost a million new coins appearing every day, the coins locked by the admin gradually make up a smaller and smaller percentage of the total BSW liquidity pool.
Since the last article, our predictions regarding the potential of Biswap have not changed – we still consider Biswap one of the best platforms for coin farming, we see that the administration is actively developing its platform, they have already added more than 10 new staking pools, including auto- compound of BSW coins (however, our local nerds calculated that manual compound is still more profitable. We will write an article about this, don’t you worry) and even Stablecoins farming, which naturally attracts hundreds of new investors to the platform.
And let’s not forget the 3-level referral payments system from the Biswap team.
The future will show if Biswap can get PancakeSwap (which is like Bitcoin in the DeFi world) off the pedestal.
However, we have no doubts that Biswap will definitely take at least second place in the top of the best swap/farming platforms.
Despite its deflationary nature, the developers also regularly burn BSW tokens, which leads to an increase in price
A FEW TIPS
It is necessary to understand some basic market rules because, in addition to the basic logic behind the distribution of coins and the tokenomics of the project itself, there is also a human factor that significantly affects the growth and fall of a particular token.
Market whales are large players with large capital who enter any project (be it Biswap,Nominex, or any crypto-asset) in order to EARN.
In other words, they are going to BUY cheaper in order to SELL more expensive later.
These guys came here to earn money, so if you want to join them, you gotta act accordingly.
Therefore, with an increase in the price of a token, it is extremely important to TAKE at least a part of the PROFIT.
How to get BSW in order to Stake it?
You go to the platform and connect your Metamask wallet.
Click on CONNECT button, choose your wallet and you’re good.
Then, in order to buy you need to click EXCHANGE and, as usual, select the coin you are giving from above.
Select BSW from below and then SWAP.
In case you want to sell your tokens – the process is exactly the same, but reversed.
At the top, you choose BSW, and at the bottom, let’s say USDT, and then you click SWAP.
In order to farm new tokens, you need to press Launchpools, confirm the contract first, and then click the PLUS button.
Next, choose how many coins you want to put there and then CONFIRM.
You can withdraw your coins the same way at any time.
For that, just press the MINUS button and choose the number of tokens you want to withdraw.
How do I reinvest new coins back to the pool, in order for compound interest to work?
Click on Details, then on the Compound button – and all your carefully accumulated tokens will be reinvested. Therefore, you can rush your deposit and farm with more and more amounts each time, cause the compound interest will start working.