MocktailSwap Intro

June 13, 2021

Intro

MocktailSwap Finance is an AMM protocol that incorporates multi-strategy yield optimizing on Binance Smart Chain (BSC) with low fees/slippage that also provides aggregation through vault compounding, lending and yield generation for maximum returns.

MocktailSwap is the decentralized swap solution on Binance Smart Chain. We provide a platform to create completely secured and fast decentralized token swaping system.

Stable positioning of your assets with little to no impermanent loss — Automated, maximally optimized yield — Complete Decentralization — A fully governance-based MOK token economy

How It Works?

It’s a new Ethereum token standard on Binance Smart Chain and a new type of dapp on Mocktail Finance!

The ERC-1155 token standard provides a way to make one smart contract govern almost an unlimited number of tokens — technically, ²²⁵⁶ token types with up to ²²⁵⁶ copies of each.

Additionally, each token is semi-fungible. Unlike ERC-721 non-fungible tokens (NFTs), which can only be owned by one address each.

Semi-fungible means:

- Each token type can be owned by multiple addresses

- One address can own multiple copies of each token.

Swapping

Swapping is the process of swapping one token to another, on the same platform. Swapping is done with a minimal fees for the liquidity provider, that has provided liquidity to the pool.

Liquidity

Liquidity is a measure of the ease at which an asset can be converted to another asset without affecting its price. In simple terms, liquidity describes how quickly and easily an asset can be bought or sold.

Farming

Yield farming is a way to make more crypto with your crypto. It involves you lending your funds to others through the magic of computer programs called smart contracts.

Staking

A staking pool is a group of coin holders merging their resources to increase their chances of validating blocks and receiving rewards. They combine their staking power and share the rewards proportionally to their contributions to the pool.

Exchange

Token swaps on MocktailSwap are a simple way to trade one BEP-20 token for another via automated liquidity pools.

The liquidity provided to the exchange comes from Liquidity Providers (“LPs”) who stake their tokens in “Pools”. In exchange, they get FLIP (MocktailSwap Liquidity Provider) tokens, which can also be staked to earn MOK tokens in the “farm”.

When you make a token swap (trade) on the exchange you will pay a 0.2% trading fee, which is broken down as follows:

0.17% — Returned to liquidity pools in the form of a fee reward for liquidity providers.

0.03% — Sent to the MocktailSwap Development Treasury.

Liquidity Pools and Adding Liquidity

MocktailSwap pools allow you to provide liquidity by adding your tokens to liquidity pools or “LPs”.

When you add your token to a liquidity pool (LP), you will receive DRINKS tokens (MocktailSwap’s version of liquidity provider tokens).

As an example, if you deposited $MOK and $BNB into a liquidity pool, you would receive MOK-BNB FLIP tokens.

The number of FLIP tokens you receive represents your portion of the MOK-BNB liquidity pool. You can also redeem your funds at any time by removing your liquidity.

Providing liquidity is not without risk, as you may be exposed to impermanent loss.

“Simply put, impermanent loss is the difference between holding tokens in an AMM and holding them in your wallet.” — Nate Hindman

It’s not all bad for liquidity providers as you will also be given a reward in the form of trading fees. Whenever someone trades MocktailSwap, the trader pays a 0.2% fee, of which 0.17% is added to the liquidity pool of the swap pair they traded on.

For example:

There are 10 FLIP tokens representing 10 MOK and 10 BNB tokens.
1 DRINK token = 1 MOK + 1 BNB
Someone trades 10 MOK for 10 BNB.
Someone else trades 10 BNB for 10 MOK.
The MOK/BNB liquidity pool now has 10.017 MOK and 10.017 BNB.
Each FLIP token is now worth 1.00017 MOK + 1.00017 BNB.

To make being a liquidity provider even more worth your while, you can also put your FLIP tokens to work whipping up some fresh yield on the MOK farms, while still earning your 0.17% trading fee reward.

USEFUL LINKS

Website: https://www.mocktail.finance/

Whitepaper: https://docs.mocktailswap.finance/

Telegram: https://t.me/MocktailSwap

Twitter: https://twitter.com/MocktailSwap

Facebook: https://www.facebook.com/MocktailSwap

LinkedIn: https://www.linkedin.com/company/mocktailswap

Instagram: https://www.instagram.com/mocktailswap/

Discord: https://discord.gg/cntAVTJbGy

Github: https://github.com/MocktailSwap

Reddit: https://www.reddit.com/u/MocktailSwap

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