Launching Veraswap Protocol: An Automated Market Maker on the Binance Smart Chain

6 min readFeb 24, 2021

Traditional exchanges such a Binance have been historically known to make use of an order book to show demand and supply of an asset. An order book used on these exchanges which are mostly centralized in their working mechanism is just a list of the current open buy and sell orders for an asset organized by price.

The working mechanism of the order book system is that of a matching engine, that is buy orders are matched with sell orders of participants on these exchanges.

For so long, exchanges, especially centralized exchanges, have utilized the order book system to match buy and sell orders with each other. Even the earliest crop of decentralized exchanges such as ForkDelta, EtherDelta were known to utilize this same system of matching buy and sell orders for cryptocurrency assets.

Decentralization has always been the core of the cryptocurrency movement and today exchanges are tending towards becoming more decentralized in their operation and working mechanism. The earliest decentralized exchanges as we have noted before although decentralized in their working mechanism still operated with the use of the order book system used by centralized exchanges to match buy and sell orders. The uprise of Uniswap and advancement in the application of the blockchain has changed all that, there is now the possibility of decentralized exchanges to do away with the order book system and algorithmically match buy and sell orders using smart contracts. This type of decentralized exchange is what is referred to as an automated market maker (AMM).

What is an automated market maker?

An automated market maker refers to a new type of decentralized exchange which uses a mathematical formula to determine the price of an asset instead of using an order book, the asset on an automated market maker is priced according to a pricing algorithm.

The formula used to determine the price of an asset on these exchanges vary from protocol to protocol. For example, Uniswap, one of the most successful automated market maker uses X*Y=K where X is the amount of one token in the liquidity pool and Y is the amount of the other token, in this case K is a fixed amount, meaning the pool’s total liquidity always has to remain constant. There are other types of automated market makers and based on their use case use different formulas for price determination but what makes all automated market makers similar is the fact that they determine prices algorithmically.

Veraswap protocol

Veraswap protocol is an automated market maker which aims to be the first fully decentralized exchange with an on-chain staking protocol that allows users to earn rewards from other liquidity pools as well as perform token swaps. Veraswap therefore brings a mix of several decentralized finance protocols under one platform with an easy to use interface to carry out transaction activities with these protocols.

Key Features of Veraswap Ecosystem

1. Serves as a means of exchange for other BEP 20 tokens to BNB and vice versa. This is achieved through an algorithmically price determination mechanism.

2. Staking VRAP token to earn rewards based on certain APY offerings.

3. Provides a means to add liquidity to other pools or create a market.

4. VeraSwap comes with some additional tools like analytics, vote and more to make it more exciting for users.

Liquidity provision Reward on VeraSwap

Just as with other automated market makers, Veraswap provides a means by which those who provide liquidity to the ecosystem are rewarded. For now the liquidity providers earn an average 180% to 680% offering which will be proportional to their share in the pool, fees are added to the pool, accrued in real-time and can be claimed by withdrawing their liquidity.

VRAP Token

VRAP token (VRAP) is a BEP 20 token on Binance Smart Chain. Thus, this token is guaranteed to work properly in the ecosystem. It can be used in other decentralized programs without any problems. VRAP token is a governance token of VeraSwap Protocol just like many other automated market maker protocols. The VRAP token will serve as the basis of major rewards within the Veraswap ecosystem as well a decision making for voters.

VRAP Tokenomics

Name: VeraSwap

Ticker: VRAP

Total Supply: 100,000,000

Decimal: 18

Token Standard: BEP 20

Contract address: 0x271c418b045d05a1d52c6bf849d47b5b5b4d769e

VRAP Token Distribution

Private: 10%

Public: 8%

Liquidity: 10%

Advisors: 5%

Marketing: 15%

Team: 5%

Staking rewards 20%

Reserve: 10%

Dao: 17%

Token pricing and Listing

Private (professionals and leaders) sale price: $0.04 BUSD
Total of $400,000 BUSD
Public sale price: $0.05 to $0.075 BUSD
Total of $500,000 BUSD
PancakeSwap Listing listing price: $0.08 USD

Total raise: $900,000 BUSD

Total supply: 100,000,000

Initial circulating supply: 21,000,000

Initial circulating market cap: $1,680,000 BUSD

Advisor and Team tokens are locked for 3 months and unlocked at 25% quarterly.

Marketing 10% unlocked and then 10% monthly over 12 months.

Are you an industry expert, professional or industry leader?

We have a private allocation for you. Please contact us on this form. https://forms.gle/PUohctazvifThdjV9

Public Sale

Public sale is open for all individuals to buy in.

How to participate in Vrap token public sale

For the sale, 8% of total supply or 8,000,000 VRAP has been allocated and will be sold in 3 different stages starting from $0.05, $0.06 and $0.075 respectively for each stage.

VRAP Token sale stage 1

Price: $0.05

VRAP Token sale phase 2

Price: $0.06

VRAP Token sale phase 3

Price: $0.075

Note: When the cap attached to each stage is reached the next stage begins automatically.

How to Participate In VRAP Token sale

Steps to Participating In VRAP Token Sale

Prepare Your Wallet

In case you don’t have a BEP-20 compatible Binance Smart Chain wallet, set up one. Pay close attention to its compatibility with the BEP-20 standard. If you have your BNB on an exchange or hosted wallet, transfer it to the wallet of your choice. BEP-20 compatible wallets include but are not limited to Metamask, Trust Wallet (mobile application).

1. Visit https://www.veraswap.org/sale

2. Click “connect wallet” to connect your wallet to Veraswap Protocol

3. Click “Buy Now” and choose between BNB or BUSD to buy VRAP

4. Input the amount of BNB or BUSD to buy VRAP, click “Buy Now” and approve the transaction.

5. You will get a transaction success notice if you have successfully purchased VRAP Token.

FAQ

Q) How do I setup a BSC Wallet in Meta Mask
A) Please read this tutorial for a full guide on how to properly setup your MetaMask wallet to BSC Mainnet here.

Q) What is BUSD?
A) $BUSD is USD-denominated stablecoin built for the binance ecosystem and backed by the U.S. dollar.

Q) How do I convert ETH or USDT to BUSD?
A) $BUSD can be purchased from Binance’s website here. An alternative is to trade on simpleswap.io with your currency of choice to BUSD (MAKE SURE YOU USE THE PROPER WALLETS FOR THE EXCHANGE) For more information on how to use simpleswap please watch this tutorial here.

Q) Which existing project can i compare with VeraSwap?
A) VeraSwap is the same familiar DEX as PancakeSwap, BakerySwap or Julswap. In-fact it is the same as Uniswap but built on Binance Smart Chain with more exciting features.

Restriction

Participants from the following countries are not allowed to participate in the IDO: “US person”, Canada, South Korea, Singapore, and China. This prohibition applies to all types of people (moral, physical, agent, etc.) and to any indirect participation (via a proxy, a name loan, etc.). By participating in the IDO, the purchaser guarantees that he meets the restrictions.