Made to Stand Out
How does the Baptswap compare to other protocols on Aptos?
There are multiple AMMs (Automated Market Makers) on the Aptos Network, each designed with its unique set of features and mechanisms. However, Baptswap stands out for a very specific reason: it is the pioneer in offering fee-on-transfer support for its listed tokens on the entire network.
But, what does this mean and why is it significant?
The Challenge with Aptos' Native Token Framework:
On the Aptos Network, the way the token framework is architected inherently prevents the direct implementation of fee-on-transfer mechanics. This poses a challenge for many tokens in the DeFi space that would like to utilize a fee-on-transfer model for various purposes, such as rewarding holders, replenishing liquidity pools, or driving other decentralized functions.
Understanding the constraints of the Aptos Network's token framework, Baptswap has taken the innovative step to bridge this gap. With its unique design, Baptswap allows tokens with fee-on-transfer mechanics to be seamlessly integrated and traded.
Let's take a look at what this means for projects on Aptos.
Fee-on-Transfer Support: A Game Changer
Many tokens in the DeFi landscape of the top blockchains, have an inherent transaction fee which is automatically deducted from transfers. This fee-on-transfer model serves multiple purposes: from rewarding holders, to replenishing liquidity pools or funding development. Other AMMs on Aptos are not designed to handle these types of tokens.
Baptswap, with its forward-thinking design, recognizes the potential and demand for such tokens and has integrated native support for them. This means that when such tokens are traded, Baptswap's underlying mechanics seamlessly account for the fee, and allocates them to the different destinations set by each individual team for their token.
Note: Read more about how Baptswap lets teams tailor their own fee structure for individual tokens, see the Fee-on-Transfer page.
More Beneficial for Liqudity Providers
Because of Baptswap's unique Fee-on-Transfer support, providing liquidity can potentially give greater returns than on any other AMM on Aptos.
Each team has the option to allocate up to 15% of their trading volume to their individual token fees. The team can decide to allocate a portion of the fees towards their LP pool, resulting in LP Providers potentially earning even more, in addition to the 0.3% on each trade!
Tokens with LP fees implemented can therefore give up to 76.5x greater return for LP Providers, compared to other exchanges on Aptos!
Read more on how Liquidity Pools work on Baptswap.
Benefits over Traditional AMMs:
Inclusive Token Listing: While other protocols might shy away or face challenges in integrating fee-on-transfer tokens, Baptswap allows these tokens to be part of the ecosystem, thus widening the spectrum of trading pairs and opportunities.
Reduced Impermanent Loss: The native support for fee-on-transfer tokens means that the risks associated with price discrepancies due to token fees are minimized. Liquidity providers can be more confident about their contributions and potential returns. Providing liquidity does not trigger fee-on-transfer to be extracted from the deposit.
Optimized Pricing Mechanism: Since Baptswap's algorithm accounts for token transfer fees, traders experience more accurate pricing, leading to fairer trades and optimized slippage.
Enhanced User Experience: By eliminating the complexities and potential pitfalls associated with trading fee-on-transfer tokens, users enjoy a smoother and more intuitive trading experience.
While there are several AMMs in the Aptos ecosystem, Baptswap differentiates itself by being the first and only protocol to natively support fee-on-transfer tokens. This not only places Baptswap at the forefront of DeFi innovation but also creates a more inclusive and efficient platform for both traders and liquidity providers.
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