Biswap is a decentralized exchange native to the BNB Chain that allows for permissionless trading and liquidity provision (to earn swap fees).
Biswap is an automated market maker (AMM) like PancakeSwap that launched in 2021 on BNB Chain. AMMs rely on liquidity pools rather than traditional order books to execute decentralized trades. The liquidity pools are funded by users who deposit two tokens in equal proportion in exchange for a liquidity provider (LP) token that represents their claims to their share of the total pool, plus a portion of trading fees. On Biswap, you can earn additional yield by locking up your LP tokens to farm them for the protocol's native BSW token.
Biswap charges a 0.2% fee on all trades within a liquidity pool. Of this amount, 0.15% is paid to LPs as a reward for providing liquidity, 0.02% goes to the Biswap team, 0.02% goes to Biswap Earn (Multi-reward pool, Launchpools and other product features), and 0.01% used to buyback and burn BSW. The last mechanism has the intended effect of constantly putting upward price pressure on the BSW token.
You can stake BSW on the platform to farm additional rewards paid in BSW and other native protocol tokens. The protocol constantly earns 0.01% of all trading fees to be used to buyback and burn BSW. LPs also earn 0.15% of fees in return for providing liquidity on Biswap.