Crypto Gloss

Biswap

Biswap is a BNB Chain decentralized exchange built on the constant-product AMM model with one of the lowest trading fees on BNB Chain (0.1% vs PancakeSwap’s 0.25%), augmented by a multi-level referral system that rewards users for referring traders, a BSW governance and fee-sharing token, and a Launchpool/NFT ecosystem — positioning itself as the low-cost DEX alternative to PancakeSwap for cost-sensitive traders on BNB Chain.

Overview

Biswap launched in mid-2021 on BNB Chain as a direct competitor to PancakeSwap, differentiating on a single key metric: trading fees. While PancakeSwap charged 0.25% per swap (later reduced to 0.17%), Biswap launched at 0.1% — a 60% reduction in trading costs for users swapping the same pairs. For high-frequency traders, arbitrage bots, and volume-sensitive protocols, this fee difference compounds significantly over time.

Biswap’s referral system extended its growth vector beyond standard liquidity mining: users who refer other traders earn a portion of referred users’ trading fees, creating a multi-level viral growth mechanism uncommon in basic AMMs. Alongside the standard DEX functionality, Biswap developed a Launchpool for new BNB Chain token launches and an NFT marketplace.

AMM Architecture

The protocol is built around the following components.

0.1% Trading Fee

Biswap’s core differentiation:

  • Standard: 0.1% swap fee (vs 0.25% on most competitors at launch)
  • Fee split: 0.05% → liquidity providers; 0.05% → BSW token buyback/burn
  • Later introduced multiple fee tiers (0.1%, 0.2%, 0.3%) for different pool types
  • Consistent product: x×y=k constant-product for all volatile pairs
  • Stable pairs: lower fee tier stable AMM pool variant

Pool Types

  • Standard pools (volatile pair): 0.1-0.3% fee depending on tier
  • Stable pools: lower fee for correlated pairs (USDT/USDC, BUSD/USDT)
  • Single-token pools: in integration with yield optimizer vaults

BSW Token

BSW is Biswap’s native governance and utility token:

  • Liquidity mining — distributed to LPs in prioritized pools based on allocation percentages
  • Staking — BSW holders stake to earn a share of protocol trading fees in USDT
  • Governance — vote on pool weightings and protocol parameters
  • Launchpool — BSW staked to earn new BNB Chain project tokens at launch
  • Supply: 700M BSW maximum, with deflationary buyback-and-burn from trading fees

Buyback and Burn

Half of all Biswap trading fees (0.05% of 0.1%) go to BSW buyback-and-burn:

  • Protocol purchases BSW from the open market using collected fee revenue
  • Purchased BSW is permanently destroyed (sent to 0x000…dead address)
  • Creates deflationary pressure proportional to trading volume
  • Mechanism aligns fee growth with BSW value accrual

Referral System

Biswap’s three-level referral system:

  • User A refers User B: User A earns 8% of User B’s trading fees in BSW
  • User A refers User B who refers User C: User A earns an additional cut from User C
  • User B earns 5% of User C’s trading fees
  • Referral rewards distributed in BSW per swap
  • Referral link generated on-chain; tracked via smart contract

This incentivizes power users to actively recruit traders rather than only providing liquidity — functioning as a decentralized distribution network.

Launchpool

Biswap Launchpool:

  • New BNB Chain projects use Biswap as initial token distribution venue
  • BSW stakers receive new project tokens as airdrop/incentive
  • Project pays in native tokens for access to BSW staker base
  • Competes with PancakeSwap’s Syrup Pools (BSW Launchpool equivalent)

Ecosystem Position

Biswap occupies a cost-sensitive niche on BNB Chain:

  • Trading fee advantage most meaningful for large-volume actors (bots, aggregators, yield protocols)
  • DEX aggregators route through Biswap when it offers best execution
  • Not dominant in TVL compared to PancakeSwap but captures volume from fee-sensitive routing
  • Integration with yield aggregators (Yield Yak, Beefy Finance) as underlying AMM

Sources

Related Terms