BaseSwap

Market Making

BaseSwap is a native DEX built on Base chain.

Risk Rating
Watch Out
Protocol Code Quality
Protocol Maturity
Protocol Design
Summary
What we like
BaseSwap is a native DEX built on Base that enables users to earn rewards by actively participating in the platform's ecosystem.
What we like less
The protocol's documentation is poor, has not been audited, and core contracts are controlled by a limited 2/4 multisig.
What it means for you
BaseSwap allows you to trade with low fees while also benefiting from the protocol-generated revenue.
Information
Exploit/Hacks
None
Info
  • Website
  • Token: BSWAP
  • Tags: Market Making
Key Metrics
  • TVL: $3.8M (Rank #173)
  • TVL Ranking by Market Making: #0
  • Blockchain: Base
  • Chain TVL
    • Base: $3.76M
Risk Assessment
Watch Out
Protocol Code Quality
  • Code not reviewed by any experienced auditors
  • Anonymous team reduces transparency
  • No documented protocol hacks since launch
Protocol Maturity
  • Latest protocol version launched in 2023; maturity over six months reduces technical risk as smart contracts are moderately battle-tested
  • Top 5% by total value locked reduces risk
  • Multisig wallet controls protocol upgrades
  • Multisig consists of less than 4 signers, which makes the protocol more susceptible to centralization risks
  • No timelock exists or no information documented, which mean a malicious actor could approve upgrades without any delay
  • Low voting power concentration reduces risk
Protocol Design
  • No death spiral concerns
  • This protocol is susceptible to risks related to decentralized exchanges (DEXs), such as impermanent loss
Things to know about BaseSwap

How BaseSwap works

BaseSwap is an automated market maker (AMM) like Uniswap that launched in 2023 on Base 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 BaseSwap, users can earn additional yield by staking their LP tokens to farm for the protocol's native BSWAP token.

How BaseSwap makes money

BaseSwap charges a 0.25% fee on all trades within a liquidity pool. A portion of swap fees is allocated to users who stake BSWAP tokens on the platform.

How you make money on BaseSwap

You can provide liquidity for market making pairs to earn BSWAP tokens. You can then stake the BSWAP tokens on the platform to earn additional rewards paid in either USDC or ETH.