What is Automated Market Maker
Before the era of digital order books, people used to initiate trades themselves. This resulted in human errors and manipulation as there was the possibility of market makes to do so. Then the automated system came where human related issues decreased.
When blockchain came into existence, developers started bringing AMM technology to the blockchain network itself. In AMM liquidity pools are provided where both assets on a trading pair are available. Other users of the platform provide the liquidity and by doing so they earn rewards based on the amount they provide and the network they are using. One of the DEX (decentralized exchange) that has implemented AMM is BakerySwap.
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BakerySwap and how it works
BakerySwap is a DEX that uses AMM to operate. It is based on Binance Smart Chain. BakerySwap allows the users to provide liquidity to different trading pairs in pools. The more liquidity the users provide the more reward they earn based on the amount that they have provided.
Decentralized Autonomous Organizations (DAOs)
DAOs are defined as open source networks that are governed by computer codes set by some of its members without the influence of a central leadership. They are totally managed by its members and has no one leader. BakerySwap is an example of DAO. The founders of BakerySwap are anonymous and as such is a prime example of DAO.
Native Token Bake
The native token of BakerySwap ecosystem is Bake token. The main utility of the token is the fact that BAKE holders are allowed to vote on governance and receive transaction fees.
At the time of writing Bake stands at a price of $1.82 with an increase of 7.42% with an overall drop of 34.83% in the last month. In the past 24 hours, the volume has decreased by 3.11%. Bake created its ATH during the month of May 2021 and achieved a price of $8.487. The minimum that Bake has achieved is during the month of September when it reached the price of $1.40.
In the long run Bakery holds a very promising future. Traders are expecting the price to recover when the market gets out of bearish movements and expect it to break its All Time High. According to Wallet Investor the price can reach around $19.249 around 2026.