BTSE welcomes three more ERC-20 tokens onto the exchange, further growing its range of quality digital assets available to traders.
- Badger DAO (BADGER)
- DODO (DODO)
- 1inch (1INCH)
1. Badger DAO (BADGER)
BADGER is the governance token of Badger DAO, a decentralized autonomous organization (DAO) with the ultimate goal of accelerating Bitcoin’s growth in decentralized finance (DeFi) across multiple blockchains. It is also the first DeFi project that focuses on BTC as the main reserve asset rather than other cryptocurrencies.
Badger DAO and BADGER
Unlike most platforms, Badger DAO focuses on building liquidity pools for ERC-20 tokens backed by Bitcoin on a 1:1 basis. The tokens include wBTC, renBTC, sBTC, among others, and can generally be compared to stablecoins, although Bitcoin’s value fluctuates. These tokens allow users to bring Bitcoin to the Ethereum blockchain and interact with various digital assets on Ethereum.
Similar to yield farming on other platforms, “yield farmers” can utilize Badger DAO’s liquidity pools by first obtaining their desired liquidity provider (LP) tokens through decentralized exchanges (DEXs) like Uniswap or SushiSwap. Then they deposit the LP tokens into Badger DAO’s liquidity pools to earn BADGER as a reward for providing liquidity.
BADGER, the governance token of Badger DAO, has three main functions:
- Governance: BADGER holders can take part in the governance of the DAO and its products.
- Liquidity Mining: It can be used for earning staking rewards and as collateral on different platforms and chains.
- Trading: It can be traded on various platforms, including BTSE, Binance, and Coinbase, among others.
With a price of $34.84 on November 5, 2021, BADGER has a market cap of around $344 million and 0.01% market cap dominance, according to CoinGecko. Its circulating supply is just over 9.9 million tokens out of a maximum of 21 million.
2. DODO (DODO)
DODO is the governance token of decentralized exchange (DEX) DODO, which developed its own proactive market maker (PMM). Traders can access lower slippage with PMM than with an automated market maker (AMM).
Proactive Market Maker
DODO as a DEX runs on Ethereum and Binance Smart Chain (BSC). While AMM is the underlying protocol that powers most DEXs, DODO’s PMM uses an oracle-aided algorithm, which obtains accurate market prices for assets and provides contract-fillable liquidity.
By constantly adjusting to the market price, arbitrage traders can take advantage of the price difference between DODO and other exchanges, thus providing sufficient liquidity for traders on the platform. Liquidity providers (LPs) can also enjoy higher liquidity and lower slippage.
Unlike AMM where LPs have to stake two assets, PMM allows LPs to only deposit one asset into the liquidity pool. That helps minimize impermanent loss, an advantage along with lower slippage of PMM as compared to AMM.
DODO Token Utilities
The DEX’s governance token, also named DODO, can be converted into vDODO (at a 100:1 ratio), a non-transferable token that allows holders to participate in the platform’s governance and earn dividends from trading fees and membership rewards. Converting vDODO back to DODO requires a variable exit fee, which is meant to encourage long-term membership. Besides the utilities mentioned above, vDODO has other three functions:
- Crowdpooling: Users stake capital in the pool for a predetermined period, after which the tokens are refunded at the same initial price.
- Initial DODO Offering (IDO) allocation: Enables asset issuance on DODO with benefits, including setting an arbitrary token sale price without capital requirement.
- Trading fee discounts
At $1.74 on November 5, 2021, DODO has a market cap of around $397 million and 0.01% market cap dominance, according to CoinGecko. Its circulating supply is just over 230 million tokens out of a maximum of 1 billion.
3. 1inch (1INCH)
1INCH is the governance and utility token of 1inch, a decentralized finance (DeFi) aggregator that enables traders to find the lowest cryptocurrency prices by scanning through decentralized exchanges (DEXs).
Aggregator for Better Efficiency
As an aggregation protocol, 1inch aims to help users achieve better efficiency for their trades through price discovery across various DEXs — rather than trading tokens from the liquidity pool of a single DEX. 1inch sources liquidity and allocates the order to multiple different DEXs to find lower slippage and transaction fees, especially helpful when trading high volumes.
Price quotes on a DEX can fluctuate with the liquidity pool, and traders may not be aware of the available liquidity pools across various DEXs to get the best quotes. Pathfinder is the aggregation algorithm developed by 1inch to find the most efficient trading paths across numerous liquidity sources on Ethereum, BSC, and Polygon. The aggregation protocol has over $70 billion in overall trading volume on just Ethereum to date.
1INCH is a multichain token on Ethereum and Binance Smart Chain (BSC integration via a bridge) that serves governance and other utility purposes in the 1inch ecosystem. Token holders can participate in the platform’s governance, including voting and receiving rewards. 1INCH is also a utility token that serves as an incentive for liquidity providers to participate in liquidity mining programs.
1INCH was introduced to the platform as a reward and governance mechanism. Users do not need to hold any 1INCH token to access any of its protocols, unless they want to involve in the platform’s governance.
1INCH was priced at $4.49 on November 5, 2021, with a market cap of around $814 billion and 0.03% market cap dominance, according to CoinGecko. Its circulating supply is just over 180 million tokens out of a maximum of 1.5 billion.
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Note: BTSE Blog contents are intended solely to provide varying insights and perspectives. Unless otherwise noted, they do not represent the views of BTSE and should in no way be treated as investment advice. Markets are volatile, and trading brings rewards and risks. Trade with caution.