Automatic Market Maker: It is built on a beautifully simple concept whereby liquidity for exchange transactions is provided in the form of on-chain pools, equal in value for each of the two tokens traded. Trades are executed against these on-chain pools, which use an automated market-making strategy to enable exchange free of order books or additional counterparties.
Liquidity providers can be anyone able to supply equal values of each of the two tokens in the exchange contract. In return, they are given tokens from the exchange contract which can be used to withdraw their proportion of the liquidity pool at any time. Whenever someone trades on the exchange, the trader pays a 0.15% - 0.3% fee which is added to the liquidity pool. Since no new liquidity tokens are minted, this has the effect of splitting the transaction fee proportionally between all existing liquidity providers.
To expand liquidity for VNDC and facilitate token allocation for users of the Bami ecosystem, Bami is launching a bonus program for users to create liquidity on Bami.
Liquidation pools allow you to send LP tokens to farm BAMI. The reward per pool will depend on the number of depositors and the rewards of that pool.
Receiving exchange fees
Receiving LP token that might be incentivized
Helping the decentralized exchange community
The most significant risk users should be aware of is Impermanent Loss.
To understand more about this risk, please refer to this article.
Bami is researching an Impermanent Loss Insurance feature to ensure no capital loss for stakers if LPs remain in the pool for a period of time. The IL Insurance idea is invented by Bancor Protocol.