📃Whitepaper
Introduction
BomberSwap is a Decentralized Finance (DeFi) Freedom & liquidity protocol that is building the derivative layer of DEX & Automated Market Makers (AMM). The intent of BomberSwap is to build products that are both native and composable to the DeFi ecosystem. These include
Synthetic Assets including a BOMB, wBNB,etc
AMM pools that are cross derived from multiple AMMs
Oracle Price Feeds based on free markets and path independent value discovery
Building financial instruments for compounding yields and margin trades
BomberSwap protocol is building a management layer over the existing AMMs by locking up LPT to mint synthetic assets that further reinforces liquidity in AMMs and Defi, unlocking liquidity from existing AMM Liquidity Pools. The initial set of product BomberSwap has been built to include decentralized.
What is DeFi?
Decentralized Finance (DeFi) is a financial system built on decentralized assets. The DeFi ecosystem comprises lending and borrowing, decentralized exchanges, and derivatives trading among other facilities.
The DeFi market consists of many innovations such as:
Lending Platforms - Compound, Aave, dYdX, Oasis, MakerDAO, Dharma etc.
Decentralized Exchanges (DEX) - Uniswap, EtherDelta, Bancor.
Assets – Digital assets such as WBTC, RenBTC etc.
Derivatives - Dai, Synthetix etc.
Payments – Platforms such as Flexa (Ethereum) and the Lightning Network (Bitcoin).
In October 2020, the total value locked in DeFi in USD is $10.71 Bn. Uniswap alone dominates 23% of the market share.
Automated Market Makers (AMM)
AMM is an implementation of Decentralized Exchanges (DEXs). AMMs replace the existing exchange order-books with a permissionless liquidity pool run by algorithms. In DeFi, the constant flow of liquidity is handled by AMMs. Smart contracts lock tokens in order to provide liquidity which enables token pair exchanges. In return, the users, also called Liquidity Providers, are issued an LPT (Liquidity Pool Token) that represents the value they put into the Liquidity Pool.
A Derivative for AMMs
DeFi is evolving with various derivative layers and AMMs are building new smart contract. BomberSwap is a DeFi platform that creates a treasury layer on top of existing AMM platforms by using LPT’s as a collateral, which is a decentralized receipt of the user’s funds in an AMM pool. BomberSwap provides the first-ever debt-free liquidity provision system! The platform provides liquidity to AMM LPTs and issues (BOMB) in the form of a minted token. The platform unlocks the LPTs once the BOMB is returned, irrespective of time. The user is never at risk given that BomberSwap does not have a Liquidation Engine!
Unlock LPT Liquidity: LPTs are the ideal collateral. They are great for funding but unsuitable for trading. Unbound will collateralize LPTs via smart contracts, which provide additional liquidity, without compromising on security.
Mint by locking LPTs: Contracts will lock LPTs and mint BOMB
BomberSwap does not have a liquidation engine. The smart contracts unlock collaterals whenever the minted BOMB is returned. What this imply is that when you mint BOMB, this does not create a debt position where: a. Users do not lose any collateral amount b. BomberSwap does not charge any penalty amount if the value of collateral goes below a certain amount.
SAFU fund: In case of an exceptionally steep decline in collateral value, the SAFU fund is there to absorb some or all of the losses without liquidating the user collateral. More details in the following sections.
Core Features
BomberSwap provides three main services in the form of fully automated Smart Contracts that do not require any third party intervention. The Smart Contracts make sure that the LPT pool is valid before a transaction can be created
Minting
BOMB tokens and other synthetic assets are minted when users provide their LPT as collateral. Once users have their BOMB, they can use the funds immediately. BomberSwap will initially support LPTs from various AMMs such as Pancakeswap, 1inch, with others to follow.
The Loan-to-Value (LTV) ratio is the percentage of funds that users can mint against their collateral. This ratio is variable. For example if it’s set at 50%, for every $100 worth of LPT token deposited, users can mint up to 50 BOMB. There is a minting fee charged to the user. This minting fee acts helps to provide stability for the ecosystem and will remain variable to help BOMBmaintain its dollar peg.
The BOMB minting terminology:
BOMB = BEP20 Navite Token of BomberSwap
LPT = Liquidity Pool Token
LTV = Loan-to-Value Percentage
Minted BOMB= LTV x USD value of LPT
mFee = [Minting Fee % ] X [ Minted BOMB]
Minted BOMB to the USER = Minted BOMB- mFee
Unlocking
When users pay back their minted funds (including the minting fees), the BOMB is burnt during the unlocking process. This takes the minted BOMB out of circulation and in return the user gets back their collateralized LPT. There will be no other additional fees charged to users when they unlock their LPT.
BomberSwap smart contracts are perpetual, meaning they don't have a maturity date on the money that has been minted, therefore there is no deadline for repayment of funds and users can continue to earn from their LPT. Unlocked LPT = Returning Minted BOMB
Liquidation Free Liquidity
Liquidation Free Liquidity is a 2 step process
Lockup LPT tokens from large market cap pairs (wBNB/USDT,wBNB/BUSD, etc)
A LTV ratio that does not risk the collateral even during steep corrections.
Maintain a SAFU Fund that with time can act as an insurance fund.
The most important part of using LPT tokens as a means of collateral is working out the impermanent or divergence loss that can erode the value of the collateral. To make it clearer, we would link the impairment loss in terms of the correction that the erc20 token will undergo in order to derive a breakeven price of the erc20 token with respect to the LTV.
BOMB Token
BOMB is used for protocol governance. It encourages participation from the token holders by way of decision making to resolve issues. Token holders will be able to vote for policy on proposed changes and implementations to better serve the community and increase the efficiency of the protocol. More details on governance is covered in the upcoming sections.
A perpetual inflation rate of 4% per year will start after 2 years, ensuring continued participation and contribution to Unbound at the expense of passive BOMB holders.
Tokenomics
Token Name : BomberSwap
Symbol : BOMB
Decimals : 18
Total Supply : 50.000.000 / 50 Million
Chain Network : Binance SmartChain
Circulating Supply
| Time Span | Circulating Supply |
|---|---|
0 to 3 months | 9.74% (6% Treasury & 3.74% from Private & Public Sale). |
3 to 6 months | 12.73%(9% Treasury & 3.74% from Private & Public Sale). |
6 months + | Linear vesting starts as described in the above table. |
Foundation Tokens have no fixed vesting schedule and would be unlocked for liquidity mining rewards and strategic fund raise . We would inform community before any type of unlock occurs & there will be an inflation of 4% after 2 years from TGE.
Fee Distribution
The fees collected from minting will get distributed to SAFU fund, Team fund, and BOMB liquidity pool. Its allocation is not fixed and as the system becomes more autonomous, the portion allocated can go up or down as required
a. SAFU Fund b. BOMB Liquidity Pool c. Team Fund
SAFU Fund and Liquidity Pools (Earn) are covered in the earlier sections.
BomberSwap Team
Governance
BomberSwap will implement a BOMB in the coming days.
The BomberSwap governance model enables BOMB token holders to participate in policies and protocol decisions on the platform. The amount of BOMB tokens that a user holds is proportional to their voting power on the platform.
The voting power of a user gives them the right to participate in policy making, proposals, and to have a say in any future direction of the platform.
The DAO (Decentralized Autonomous Organization) has Smart Contracts that form the backend of the platform.
The DAO maintains the transaction records and rules that must be implemented on the blockchain for BomberSwap protocols.
Tokens allocated for the DAO are more for financing the platform since the Smart Contracts do not vote & are released when new policies and improvement proposals from the community have been passed. These will be used to fund projects for the platform.
Team Fund
Some portion of fees is distributed to team members to enable further development. This allocation is not fixed and is subject to change as required.
Roadmap
Phase I
Website Launch
Airdrop Campaign
Token Sale & IDO
Phase II
DEX Launch
BOMB Tradeable
Staking & Farming on BomberSwap Platform
Phase III
BomberSwap Governance
BOMB Launch on Major Exchange
Auto Reward for BOMB Holder & Staker
Develop a community contribution Grant Program
Expand to a multiple-chains
Phase IV
Estabilish On-Chain Governance
Integration into CrossWallet
More swap pairs on DEX
Social Media
Telegram : https://t.me/bomberswapann
Discussion : https://t.me/bomberswap
Twitter : https://twitter.com/bomberswap
Blog : https://bomberswap.medium.com
Github : https://github.com/bomberswap
Docs : https://docs.bomberswap.xyz
Website : https://bomberswap.xyz
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