I started using and investing in Biswap (BSW) in August 2021, and since then I’ve remained in love with the exchange.
In this post, I will be sharing with you why I think it’s a good idea to have BSW in your crypto portfolio.
Furthermore, I will be showing you the various ways I am using to accumulate the token and grow my stack passively.
What is Biswap
Biswap is the second largest decentralised exchange (DEX) on the BNB Smart Chain (BSC) that allows you to swap BEP-20 tokens at the lowest fees.
The exchange is most popular for having the lowest trading fees, its unique multi-type referral program, assorted passive income opportunities, and other lucrative features.
I have written an in-depth review of the platform, check it out to learn more about it.
What is the Biswap (BSW) token
BSW is the native token of the Biswap DEX which is mostly used to incentivize liquidity providers and users of the platform, participate in governance, etc.
The token has a maximum supply of 700, 000,000, of which almost half is currently in circulation.
Biswap (BSW) tokenomics
BSW is a BEP-20 token on the BNB Smart Chain (BSC) with a maximum supply of 700, 000, 000 tokens used to power the entire Biswap ecosystem.
The Biswap tokenomics is focused on the community and users as you will see below.
BSW allocation and distribution
Initially, a total of 70 million BSW was allocated for the Biswap NFT Earn, Play to Earn programs and strategic partnerships.
And another 30 million went towards the transaction fee mining program.
The remaining 600,000,000 of the supply is distributed as follows:
- Farms / Launchpools: 80.7% per block
- Referral Program: 4.3% per block
- SAFU: 1% per block
- Team: 9% per block
- Investment Fund: 5% per block
As you can see, most of the token is going to the platform users and BSW investors or liquidity providers through the Farms and Launchpools.
Furthermore, a significant portion is also going towards the referral program which is one of the primary ways I am accumulating more of the token.
All tokens are released based on block emission.
In April 2022, the Biswap community voted to reduce the BSW emission per block from 20 to 16.
As such the current emission of the token is 16 BSW per block or 453,856 per day based on the current number of blocks per day that BSC produces.
Based on this emission, the entire maximum supply of BSW will be produced in 683 days or a little less than 2 years.
However, if the community decides to vote on increasing or decreasing the emission again, it could reduce or increase the time it’ll take for the entire supply to be released.
In this inflation phase, I want to earn and accumulate as much BSW as possible ahead of the next bull run and the supply shock that’s coming.
Biswap (BSW) deflationary mechanisms
Every month the Biswap team uses a portion of the platform revenue to buy back BSW which is then burned once every quarter.
Below is a breakdown of the portion of the platform’s revenue used for buying back and burning BSW.
- All the rewards from accounts with no referrer
- The Biswap Holder Pool and auto-compound pool performance fees
- Biswap Holder pool and auto-compound pool early-withdrawal fees
- 5% of the trading fees generated on the exchange
- 10% of BSW from NFT sales revenue
- 50% of the 1% of the NFT Marketplace commission fee
- 0.5% Royalty Fee from each sale of Biswap Robbies NFT Earn Collection
- 1% Royalty Fee from each sale of Squid NFTs Collection
- 15% from IDOs revenue
As of today, September 13, 2022, a total of 40 119 222 BSW (5.73% of maximum supply) have already been burned, according to data from the project’s website.
Why I am aggressively accumulating BSW token
Below are the specific reasons why I am investing in BSW and constantly trying to grow my bag, especially in this bear market.
Also included is what I and doing with my BSW tokens while I HODL.
1. BSW is highly undervalued
“You make your money when you buy, not when you sell.”
Looking at the fundamentals of BSW, you’ll see that the token is heavily undervalued at the current prices.
Let’s consider the FDV/TVL ratio for example.
The fully diluted valuation (FDV) / total value locked (TVL) ratio for BSW is currently at 0.6.
What does this mean?
It means that the market value or marketcap of the token is lower than the total amount users have deposited on the platform.
This is one of the most obvious signals that a token is undervalued. Its current valuation does not reflect the level of adoption, trust, and resources it commands.
An FDV/TVL ratio below 1 shows that the project is undervalued and when it’s above 1, it shows that the project is overvalued.
The farther below or above the ratio is from 1, the more undervalued or overvalued the project is.
In the case of BSW, it’s currently at least 40% undervalued, making it a potential good buying opportunity right now.
Buying a token when it’s clearly undervalued alone almost guarantees a future profit.
I discussed this in greater detail in a previous article, How to determine a token’s fair price using its supply and marketcap data.
Check it out for more insights.
Another reason why I am investing in BSW is that the team is provably competent and highly committed to the success of the project.
Furthermore, they keep thinking outside the box and releasing innovative products and features that add value to the users, engage and reward the community, etc.
The crypto market is highly competitive and fast-changing, and the Biswap team have shown that they understand what it takes to make the project a significant player in the DeFi world.
Why does the team matter in buying a token?
Because when you invest in any project, you’re actually investing in the team. You’re trusting that the team is capable of making the project successful.
And I strongly believe that the Biswap team are worthy of my investment and support as an investor and member of the community.
Even Binance has invested in them through the Binance Labs since October 2021, and they have been working closely with the leading exchange ever since.
My faith in the Biswap team is mostly based on what the team has accomplished so far and what I see them doing.
The various partnerships and institutional investments just reinforce this faith as VCs like the Binance Labs don’t just invest in a project without doing some extensive due diligence.
3. Fixed supply and deflationary
BSW has a maximum supply of 700 million and every month the team buys back the token using allocated revenues and burns them once every quarter.
Here’s why this is a compelling reason to invest more in BSW.
First, the token has a fixed supply and there’s a buyback and burn program that constantly reduces the amount in circulation.
This will have the effect of stabilising the price and supporting its value appreciation.
Furthermore, the bigger the project gets and the more revenue it generates the more and faster BSW will be burned.
You already know I love tokens with fixed supply and a burning mechanism that constantly reduces supply using a portion of the platform’s revenue. And Biswap wins in this area too.
4. Multiple use cases
One of the factors to consider when conducting a fundamental analysis of any project is the token’s use cases.
Though BSW is a user incentive token, there’re a number of uses it serves on the platform that gives it sustained demand or utility.
The first is the Biswap Holder Pool which allows you to stake BSW tokens to be able to participate in governance, IDOs or Launchpads, enjoy exclusive farms, etc, all while earning more BSW with auto-compounding.
Secondly, you can stake BSW on third-party platforms such as Binance, Beefy, etc.
These staking opportunities give the token sustained demand.
Eventually, when the maximum supply is reached, inflation will cease and the staking rewards (which is the primary source of inflation) will be coming from buybacks using a portion of the platform’s revenue.
This is when you’ll see the real value of BSW.
With sufficient revenue to support profit sharing via staking rewards, combined with token burn, the value of the token will skyrocket.
5. Strong revenue model
The success of any crypto project or token is predicated on a strong and sustainable revenue model.
Without revenue to support its reward system and incentive programs, eventually, a project will die a natural death.
Biswap is the second-largest DEX on BSC with plans of going multi-chain.
The platform currently generates significant trading volume and revenue in fees which goes towards its various incentive programs and community growth efforts.
Though the trading fee is the primary source of revenue for the DEX, it’s not the sole source of the platform’s revenue.
The exchange earns additional revenues from staking performance fees, early-withdrawal penalty fees, NFT marketplace commission, NFTs royalty fees, IDOs revenue, etc.
Finally, as the project goes multi-chain, the bigger its potential revenue and the more value it can generate for its investors and users.
6. Great products
Biswap offers multiple innovative and unique DeFi products that you can leverage to earn passive income or trade and earn more efficiently on the platform.
Innovative products such as the Multi-Reward Pool, Launchpools, Fixed Staking, Multi-type Referral System, standard yield Farms, etc, are just a few of them.
All these are in addition to having the lowest trading fee with a transaction fee rebate program that gives up to 50% of your trading fee back to you in BSW tokens.
There are a lot of reasons I and many others continue using Biswap exclusively to trade on BSC, and once you get it, I’m sure you too will choose them over the other DEXes in BSC.
What I am doing with my BSW token
I purchased my first BSW in late 2021 and staked them in the Holder Pool where they’ve been growing with auto-compounding.
First I make effort to accumulate as much of the token as I can especially during this inflation stage before the entire supply is released to the market.
Furthermore, I love to put all my tokens to work, especially with auto-compounding to accelerate my portfolio growth.
And that’s why I find the BSW Holder Pool and the BSW auto-compounding pool very attractive.
That’s not all, the Holder pool also gives me certain privileges such as access to exclusive farming opportunities, an increased referral reward rate, etc.
How I am accumulating BSW
There’re 2 primary ways I am currently accumulating additional BSW and increasing my stack of the token.
First is through the Biswap multi-type referral program which is one of the passive income opportunities on the platform I discussed HERE.
The second is through the Biswap Space Agents Program (SAP) which rewards content creators and affiliates with up to $3,000 in BSW every month.
Since I started participating in the program 4 months ago, I have earned a total of $1,750 in BSW from the SAP in addition to my referral commissions.
There’re other ways to earn more BSW by participating in the various community engagement programs the project is constantly running.
Or just visit the project’s website for the latest updates and new features.
Where can I buy BSW?
You can buy BSW on the Biswap DEX itself on Binance, KuCoin, and other crypto exchanges.
Click here for the full list of exchanges and markets where you can buy the BSW token.
All indicators show that investing in the BSW token right now is a good idea as the fundamentals are strong and the token is highly undervalued.
However, I encourage you to do your own research (DYOR) and learn everything you can about the project and share your findings or experience with us in the comments section below.