The 1st Investment Pool Model on DEX | BSW, Classic & Real Yield Pools

Biswap
8 min readNov 20, 2023

The recent release of the new AMM V3 isn’t the last thing that awaits Biswap users this year. Another vital aspect of the platform’s development is reducing the BSW circulation supply to eliminate pressure on the token and raise its value. The Biswap team is developing a new lock mechanism called the BSW Investment Pool to achieve this. The new tool aims to introduce several valuable products and modifications in trading fee distribution.

In this article, you will find out what awaits you in the future and what earning benefits you will receive after the release of the BSW Investment Pool.

BSW Investment Pool | New Lock Tool on Biswap DEX

The BSW Investment Pool introduces an innovative earning concept designed to amplify the funds of BSW holders through a range of options. This new product allows users to lock BSW tokens to receive diverse rewards, with the key principle being that the more BSW tokens are locked, the greater the rewards and increase in BSW value for users.

By locking BSW tokens into the BSW Investment Pool, the circulating supply of BSW decreases. As a result, the pressure on the BSW price also declines in response to the demand for tokens in the market.

📍Note: in case you have BSW locked in BSW Launchpools, you may withdraw your staked crypto and stake it to the BSW Investment Pool.

Goals & Perks of the BSW Investment Pool

Firstly, the new lock mechanism on Biswap DEX is focused on the following steps that will positively affect all the platform’s users:

  • increase BSW token value, gradually reducing BSW emission and completely stopping it as a result;
  • decrease the pressure on the BSW token price;
  • create a Protocol Owned Liquidity (POL) to hold and manage the Biswap liquidity in its ecosystem;
  • maintain a higher number of BSW on the platform;
  • ensure Real Yields in USDT for users.

Secondly, as a BSW holder, you will experience more earning freedom and opportunities.

  • Diverse reward system

Participating in the BSW Investment Pool offers you a variety of rewards, including BSW tokens (a passive income source), oBSW (an option point for additional earning offers such as discounted BSW purchases and access to the Real Yield Pool), and vBSW (a voting power).

  • Exclusive access to the Real Yield Pool

If you participate in the BSW Investment Pool, you can stake your oBSW points to the Real Yield Pool and earn real income in the form of USDT tokens.

  • Flexible lock terms

You have the flexibility to choose from four different lock terms for staking BSW tokens. You can even have multiple deposit positions simultaneously, allowing you to implement your own unique strategies.

  • Higher APRs for long-term investors

By opting for longer lock terms, you can enjoy higher APRs for your investments, providing increased potential returns.

  • Expanded utility for BSW Holders

The inclusion of vBSW and oBSW points introduces new avenues for BSW holders to maximize the benefits of their holdings.

Lock Terms & Rewards in the BSW Investment Pool

You can choose from four lock-term options to stake their BSW tokens: 3, 6, 9, and 12 months. It is also possible to stake BSW for different lock terms simultaneously. Throughout the lock periods, you will receive the following rewards, o-points, and voting power:

  • BSW — the native Biswap token that is redeemed from the market and doesn’t put pressure on the price;
  • vBSW — the representation of the user’s voice power for voting on the Biswap DEX platform;
  • oBSW — an option point that allows users for different kinds of earn. Users can buy BSW at a discount or stake oBSW to receive USDT tokens in the Real Yield Pool. During staking in the BSW Investment Pool, oBSW can be used to redeem BSW at a discount. Partial use of oBSW is not possible, as all actions concerning oBSW are based on the total oBSW quantity on the balance.

Upon the conclusion of the lock period, the distribution of rewards will cease. Furthermore, both during and after the lock term, users will have several available options:

  • unstake the deposit and get the locked BSW deposit + BSW rewards to the wallet;
  • add more BSW to deposit and continue to stake, choosing one of the lock terms.

Mechanics of BSW Reward Allocation

The mechanics of BSW reward allocation involve the allocation of 3 BSW per block to the Investment and Classic Pool. Specifically, the Investment Pool receives 1.485 BSW for BSW rewards and another 1.485 BSW for oBSW rewards. This emission is then distributed to users as BSW reward payouts based on the APR. The APR of the Investment Pool is dependent on factors such as the lock term, reward distribution, and the total amount of tokens staked in the Investment Pool during certain periods. In addition, after compounding or staking an additional deposit, the share for BSW reward accrual is recalculated based on the user’s new share in the pool.

It’s also important to note that in case of an early withdrawal, a penalty fee of 50% will be deducted from the withdrawal deposit to the POL (Protocol Own Liquidity), while the earned BSW will be transferred to your wallet. Just a little reminder — POL is a BSW/USDT liquidity that belongs to the Biswap DEX.

Distribution of Tokens & Points in the BSW Investment Pool

As you already know, the BSW Investment Pool has 3 types of gainings. Let’s review how each of them is distributed in the pool.

Distribution of BSW Rewards

The allocation of BSW rewards is carried out according to the specified APR, which depends on the lock-up period in the reward distribution table. The APR may be adjusted by the team to maximize the efficiency of the reward distribution. Reward distribution will occur once a day at 12:00 PM UTC.

Example 1: You staked BSW in the pool for 1 day, 5 minutes before 12:00 PM. You will receive rewards not on the first day at 12:00 PM (i.e., after 5 minutes) but on the 2nd day.

Example 2: You staked BSW in the pool at 12:05 PM on the first day. Therefore, you will receive the rewards not on the 2nd day at 12:00 PM because less than 24 hours have passed, but on the 3rd day at 12:00 PM.

Example calculation of APR% for BSW Rewards:

APR% = (1.5 BSW/block * blocks/day * 365 / Total Staked Tokens) * 100%

(1.5 * 28,800 * 365 / 20,000,000) * 100

(15,768,000 / 20,000,000) * 100

0.7884 * 100 = 78.84% APR

For each lock option, the distribution of BSW rewards will be adjusted using a multiplier to maintain the correct APR ratio for all terms.

Distribution of vBSW Points

vBSW serves as a unit of voting power and is used for participation in voting. Unlike the previous voting concept, where the amount of staked BSW represented voting power, with the introduction of the new pool, only vBSW will represent voting power.
The distribution of the voting power happens with the following calculation and also takes into account staking period, locked tokens and the multiplier:

(x3m * y3m) + (x6m * y6m) + (x9m * y9m) + (x12m * y12m) = z

X — amount of locked tokens

Y — multiplier, the value of which depends on the lock term

Z — vBSW

3m, 6m, 9m, 12m — lock terms

Distribution of oBSW Points

oBSW is a point option that serves as a reward for users in the Investment Pool. Each oBSW is collateralized by an equivalently changed BSW, which is stored in a separate contract. The distribution of rewards will occur once a day according to the user’s deposit share in their option within the Investment Pool. Accruals will take place at 12:00 PM UTC similarly to the BSW rewards’ distribution described above in this article.

Real Yield Pool | Profit in USDT Tokens

Real Yield Pool stands out in the DEX market as a unique model for earning rewards. Real Yields are earned in USDT stablecoins when you stake oBSW to the BSW Investment Pool at Biswap. Unlike native token emission, Real Yield rewards come from a set percentage of the platform’s genuine income, a strategy designed to reinforce BSW value while ensuring stable rewards for the pool’s users.

The Treasury is the origin of Real Yields. This specialized contract designates 10% from the V3 trading fee, a portion of POL rewards, and might be expanded with potential future revenues of Biswap. This arrangement confirms that USDT rewards benefit Real Yield Pool users. The Biswap team will determine the percentage of the Treasury towards the pool’s rewards to sustain a specific APR in the Real Yield Pool.

How Does the Real Yield Pool Work?

The Real Yield Pool offers a 21-day staking period, allowing users to earn USDT rewards. After this period, users can choose to exchange their oBSW points to BSW using USDT stablecoins for staking. At the beginning of the staking period, there is a maximum 30% discount for oBSW exchange. However, the discount gradually decreases by 1.43% with each accrual of USDT rewards to the user’s balance. The reason for the specific percentage of 1.43% is derived from a simple calculation: divide 21 (staking period) by 30% (maximum discount), resulting in 1.428%, which is rounded up to 1.43%.

At the end of the staking period, the discount becomes 0%. If you choose to exchange your oBSW at a 0% discount, it will be at total value (oBSW to BSW exchange for your USDT tokens). However, selecting this option will stop the USDT rewards. After the staking period (21 days) expires, your Real Yield rewards remain in position and you will need to manually harvest them.

oBSW Burn in the Real Yield Pool

Once the staking timer expires, oBSW tokens will be burned. The BSW in the oBSW Supply contract, which had collateralized them, will become surplus. The team will remove these tokens and send them to the POL (Protocol Owned Liquidity).

Classic Pool | One More Way to Gain Voting Power

BSW Classic Pool is a separate pool with no lock term. You will be able to get BSW rewards and vBSW (voting power) there. BSW Classic Pool is one more way to earn from BSW staking. It is separate from the BSW Investment Pool and 1% of the 3 BSW tokens, allocated to the BSW Investment Pool from emission, will be directed as BSW rewards to the Classic Pool

What are Perks of the Classic Pool?

  • Stake BSW with no lock term
  • Get BSW rewards
  • Gain vBSW (voting power)

The Classic Pool offers an additional opportunity to earn BSW and voting power alongside the main BSW Investment Pool. The choice is yours, Biswapper.

Conclusion

Biswap is thrilled to introduce you to the new strategic movement to amplify BSW and give you more lucrative crypto-making opportunities. Other details and guides will be closer to the release. Stay tuned for more Biswap news!

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