August 31st, 2021
TLDR — Even with a 4% swap fee on BUSTA DEX, it’s generally cheaper than trading on PancakeSwap as BUSTA DEX is where the most liquidity is.
More liquidity = lower price impact = cheaper trades
Read on for more info or bookmark dapp.busta.gg to make sure you’re getting the cheapest trade for BUST
BUSTA DEX has a 4% swap fee on all trades of BUST, PancakeSwap is only 0.25%. So how can it be cheaper to buy and sell BUST on BUSTA DEX? Because of the price impact that you will encounter on PancakeSwap since it has only a fraction of the liquidity compared to BUSTA DEX
What Is Price Impact?
Price impact is the effect that any buy or sell will have on the price of the traded token. It occurs as part of the trade and therefore must be considered when deciding to proceed with a trade or not
Price Impact increases when the liquidity of the trading pair is low and the amount traded is high, and decreases when the liquidity is high. Trying to buy a lot of a token with low liquidity? Expect to pay a lot more than the listed price
So where is the most BUST liquidity?
On BUSTA DEX of course!
We’re putting 10% of our initial liquidity on PancakeSwap and the other 90% on BUSTA DEX. Furthermore, our BUST-BNB and BUST-BUSD staking pools are routed through our DEX so all the liquidity that’s staked in our pools will increase the trading liquidity available
This means that shortly after the token is released, we could very easily end up with 95–99% of the available liquidity on BUSTA DEX
So you’re welcome to go to PCS and check what price you’ll get there, but don’t be surprised if you see 5%, 10% or even 20% price impact for your trade
For ease of access and the cheapest trades, you’ve got to trade on BUSTA DEX :)
And lastly, for those wondering what happens with that fee;
- 1% auto-burns BUST
- 1% auto-adds BUST trading liquidity
- 1% goes to a pool where it’s split between additional staking rewards and the affiliates who refer users to the BUSTA platform
- 1% goes to the BUSTA DAO where it’s split between topping up the BUSTA CRASH bankroll and the Treasury for further development and marketing etc.
So not only are you getting the best price, but you’re also supporting the BUSTA ecosystem with every trade :)
PS. The DEX is still in beta so although the core swapping functionality works fine, there are some UI bugs that we are hard at work fixing. We’ll have it all fixed asap, but if you do encounter any issues just do a hard refresh of your browser and disconnect/reconnect your wallet and you should be fine.
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