BeeSwap Whitepaper

Monday, March 29, 2021
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BeeSwap NFT-DAO Automated Market Making Decentralized Exchange

Introduction In financial industry, the core participant of blockchain financial is a DAO. In the natural world, We all believe that the bees is the best decentralized autonomous organization. In the bees' DAO system, each small bee contributes to the community through labor. It not only meets the needs of self and the interests of the community, but also creates more surplus value that is higher than the needs of its species: honey. The achievements of bees, which fully reflect the power of unorganized collaboration to create an orderly society and generate value. This kind of strength and order is precisely the goal of decentralization financial and integration that the blockchain p Bees make honey, not for their own food.BeeSwap hopes to convey the organizational value of honeybees: users, like bees, can get due rewards by contributing to the community. And through incredible high-efficiency collaboration, we can make sweet honey fo

1. Market Analysis One of the core functions of finance is to solve the incentive 跨链聚合分布式交易平台 problem. With the appearance and development of DeFi, which provides new ideas and more possibilities for this function. In 2020, the DeFi market is ushering in explosive growth. The locked-in value of DeFi has been soaring as an indicator to guide market liquidity . On September 18, the locked-in value of DeFi reached a new high of 10.812 billion US dollars.The outbreak of DeFi fully shows that the open and transparent decentralized financial ,which based on the blockchain has huge development potential and will play a significant role in the future. In the hot DeFi market, however, behind the sharp increase in the price of various DeFi project governance tokens, its market share in the entire blockchain is only 1%, which is even like a drop in the ocean compared to the entire financial market. A large number of blockchain users have not yet participated in the DeFi market. There are several important reasons for this:

• Congestion and high gas fees of ETH caused a worse user experience At present, most liquid mining projects are based on ETH. As the largest 跨链聚合分布式交易平台 smart contract platform up to now, it has the ability to build smart contracts compared to Bitcoin. The total market value of DeFi tokens has reached 15 billion US dollars, exceeding the market value of all public blockchains except Ethereum. However, due to the current performance of ETH, the throughput is too low, the speed is slow, the congestion is serious, and the service fee is expensive, making transactions cost much. After the DeFi boom subsides, many participants will not be able to afford the high loss of handing fees. • DeFi is mainly developed in ETH, so other public blockchain users cannot have a hand in it DeFi prime data shows that 80% of DeFi projects are currently on Ethereum, while EOS and BTC have only 8% of DeFi projects respectively. Most of the DeFi projects are developed based on ETH, so that other mainstream public blockchain and mainstream currency holders cannot be participators in DeFi. • Unlimited mining models keep more users daunting According to a new survey conducted by cryptocurrency market data provider Crypto Compare, DeFi projects in 2020 are considered speculative by 90% of the audience, and only 10% of them consider it to be an acceptable daily financial governance option. The reason is that many DeFi projects currently adopt an unlimited mining model in order to increase the enthusiasm of early users. The unlimited currency production model will make users hold the currency for longer, the scarcity of their tokens will decrease, and the value of tokens will become lower and lower. In the end, it will be difficult to truly build consensus and maintain long-term development.

• The current DeFi project provides high liquidity, but not have the continuous high value 跨链聚合分布式交易平台 Currently, DeFi has gained the attention of the blockchain industry because of its high liquidity. Due to the simple and rude mechanism of projects in the current DeFi market, a lot of projects do not meet the conditions still have flooded in, causing bad money drives out good. Community consensus is difficult to consolidate, and the entire market cannot maintain a sustainable high value. If these problems mentioned above cannot be obviously improved, the DeFi market will soon encounter a development bottleneck. And DeFi is considered to be the engine that promotes the development of the blockchain market. Only when DeFi completely releases its potential can the entire industry achieve better growth in the long run. To this end, we launched BeeSwap and proposed our solutions for the above pain points.

2. BeeSwap BeeSwap 2.1 Brief introduction 跨链聚合分布式交易平台 BeeSwap is an AMM decentralized trading platform for the entire blockchain industry, based on the NFT-DAO underlying governance structure developed by ERC20.BeeSwap is committed to breaking the barriers of public blockchain, opening more cross-public blockchain liquidity transactions, and providing liquidity services to more users. At the same time, BeeSwap uses the CFMM system to realize automated transactions and reward liquidity providers. Anyone can experience the DEX platform service with few service charge, low slippage and high efficiency. In community governance, we also introduce NFT attributes to help BeeSwap capture higher ecological value and build a high- cohesion community consensus. 2.2 Product highlights 2.2.1 Blockchain-connected aggregator As Polkadot, Comos, Solana and other public blockchain ecological projects started liquidity mining, the trend of blockchain-connected liquidity mining is gradually revealed.BeeSwap will support ETH, BNB smart chain, GXChain, TRON chain, and will also support Polkadot and more public blockchain in the future.

In the initial stage, the integration of wBTC and RenVM tokenization and blockchain-connected technology will be introduced in the blockchain-connected aggregation mining, 跨链聚合分布式交易平台 and then we will develop our own tokenized blockchain- connected technology and finally realize the decentralized asset blockchain-connected. 2.2.2 Liquidity mining with wider coverage • Blockchain-connected asset staking supporting In blockchain-connected aggregate mining, it will support multi-chain mainstream currency staking such as ETH, USDT, HT, GXC, GOF,BNB,YFII,UNI, etc. and produce platform currency BEE. • Incentivize different DEX liquidity providers LP At the same time, it provides rewards for DEX liquidity provider LP represented by UniSwap, and supports its platform currency and popular projects to launch BeeSwap. 2.2.3 Reduction of loss of liquidity mining • CFMM system At present, the AMM system represented by UniSwap still has some small defects, making it difficult to be widely adopted. An AMM system can choose an unlimited number of specific curves for pricing, and the current platform uses a single curve. We can abstract all these different pricing functions and call the entire category constant function market makers (CFMM). BeeSwap will support multiple AMM curves in light of the characteristics of different tokens, such as the stable curve used in stable coins.

• BeeSwap Use Layer2 protocol to reduce handling fees The ETH Layer2 protocol will be connected to enable users to trade at BeeSwap faster and with lower fees. 跨链聚合分布式交易平台 2.2.4 NFT-DAO:NFT capture high value and DeFi improve liquidity BeeSwap adopts a dual-currency operation governance structure, which is composed of the DAO governance token BEE and the BeeSwap ecological token HON. The two complement each other. BEE can produce HON, or consume HON to have more HON.We have introduced the attributes of NFT for the governance token BEE, users can synthesize NFT-BEE through BEE, and users can also get NFT-QUEEN by lot drawings. NFT-QUEEN has the right to make proposals, and all proposals will be reflected on the blockchain in order to truly realize fairness and transparency in community governance.The auction value of NFT-QUEEN and NFT-BEE will also further enhance the community consensus, enable BEE to capture higher value, and ensure the lasting stability of the project.

BeeSwap 跨链聚合分布式交易平台 • BeeWorld: The cradle of NFT-QUEEN and NFT-BEE In BeeWorld, each bee with different attributes corresponds to an NFT on the chain, with a unique id and status. More importantly, it has its own independent value. There are only 99 NFT-QUEENs in the entire BeeWorld, which means 99 nodes. Owning the queen bee (NFT-QUEEN) has the right to propose, and BEE holders have the right to vote, thereby helping the community complete governance. The proposal needs to staking the NFT-QUEEN and a certain percentage of BEE coins, but this does not affect the normal income of the NFT- QUEEN. The auction cannot be carried out during the staking voting period. When the voting ends, the NFT-QUEEN and the BEE coins used for voting returns in the original way, but the BEE used in the passed proposal will be burned permanently.

Users who own NFT-QUEEN will be the lucky ones who benefit the most from the entire BEE ecosystem. After the staking of HON is launched, users who own the NFT-BEE can mine by staked BEE coins and NFT- QUEEN, and the NFT-QUEEN will increase the mining weight by more 跨链聚合分布式交易平台 than 150% on the basis of ordinary users. Users can also synthesize NFT-BEE with new attributes by consuming BEE coins, and the BEE coins used for synthesis will be burned permanently. The level of NFT-BEE is randomly determined according to the amount of BEE consumed by the user, because the quality of the synthesized bees is different, and the staking weight and benefits are also different. • BeeStore: The NFT auction mall BeeStore is a bee coin auction site where users can auction their own NFT-BEE and NFT-QUEEN. Other users can freely participate in the auction. Successful auctions need a certain of transaction fee, of which 1% will be used for HON holders’ dividends, 1% for HON’s secondary market repurchase and destruction, and 1% for BeeStore maintenance. In addition, BeeStore will be open to NFT ecological projects on BeeSwap, and the NFT of such projects can be auctioned on BeeStore. • Community governance: voting for high quality projects In BeeSwap, everyone can create trading pairs on it. However, in order to avoid the chaotic of DeFi mining. BeeSwap will use community voting to help users screen high-quality projects to reduce the risk of participating users. Every BEE coin holder has the right to vote. Besides, other important decisions of the community can be made by voting.

3.Token Model 跨链聚合分布式交易平台 3.1 The output and distribution of BEE The total amount of BEE is constant at 21 million pieces, and 10% is used for community incentives and ecological construction (It will be used for cooperative exchange platform coin mining, ecological partner token mining, and Bee ecological token mining, investment resource exchange, etc.), 90% is produced by mining. 3.2 BEE staking 3.2.1 Arrangement of reduction Each round of mining cycle is one week, 300,000 pieces are mined in the first week, the output is reduced by 2 times in subsequent per week. Week Weekly Reduction(times) Weekly Output 1st (pieces) 300,000 2nd 2 150,000 3rd 2 75,000

3.2.2 Staking pool Week Output Output way of BEE There are 8 head mining pools, which produce BEE by staking. Initial mining pool: ETH, HT, GXC, USDT, YFII, UNI, GOF, BNB 1st 300,000 According to the actual situation of the eight staking pools in the first round, it is decided to keep and cancel. The stayed 2nd 150,000 pools will share the output equally and directly enter the second round Used to incentivize BEE transactions liquidity providers in DEX such as UniSwap According to the actual situation of staking pools, it is decided to reserve and cancel. 3rd 75,000 The stayed pools will share the output equally and directly enter the second round After BeeSwap goes online, the liquidity in UniSwap will flow to BeeSwap

BeeSwap 3.3 The output and distribution of NFT 99 pieces of NFT-QUEEN will be born through staking, liquidity mining and synthesis. The specific rules will be 跨链聚合分布式交易平台 announced on the official website, and the lot drawing will be triggered when the conditions are met. Users who meet the corresponding requirements can participate in that. 5% Users can also synthesize NFT-BEE with new attributes through BEE, and have an opportunity to obtain NFT- QUEEN. The BEE used for synthesis will be permanently burned, 95% and the NFT-BEE level is randomly determined according to the amount of BEE consumed by the user. Because the quality of the synthesized bees is various, the stake weight and earnings are also different. 3.4 The output and distribution of HON The total amount of HON is constant at 1 billion pieces, 10% is used for community incentive ecological construction, and 90% is produced by community mining. HON staking will start during the BEE mining process. Users can stake BEE to get HON. The output will be 1.5 million in the first week, then it will be reduced by 3 times in the second week, and by 2 times in subsequent per week.

Week Weekly Reduction(times) Weekly Output 1st (pieces) 1,500,000 2nd 跨链聚合分布式交易平台 3 500,000 3rd 2 250,000 5% 3.4.1 Allocation of HON staking pool Week Output Output way of BEE 95% 1st 1,500,000 BEE staking pool BEE transactions in liquidity staking pool 2nd 500,000 BEE staking pool BEE transactions in liquidity staking pool HON transactions in liquidity staking pool 3rd 250,000 BEE staking pool BEE transactions in liquidity staking pool HON transactions in liquidity staking pool

3.5 Profit Distribution of HON Worker Pool The main application of WorkerPool mining transaction fees: • 1% as a reserve for risk; • 1% is used for harvest rewards; • 3% is used for community activities, technical iterations, security audits, etc 4、Roadmap 2020 Q2 Market research and MVP model discussion 2020 Q3 Product development and testing 2020 Sep Audit of liquidity mining contract 2020 Sep-Oct BeeSwap liquidity mining goes online 2020 Sep-Oct Support multiple liquidity platform LP mining 2020 Q4 BeeWorld launched 2020 Q4 BeeSwap DEX launched 2021 Q1 BeeSwap LAY2 protocol launched 2021 Q2 Beehive API launched