QiSwap is an interesting decentralized exchange on the Binance Smart Chain (BSC) that enables users swap tokens at a transaction fee of 10%, whereby 9% is ‘burned’ and 1% added to the liquidity pool and locked away.
The idea is to increase the price of the native $Qi token by cutting supply with every transaction. The DEX also enables anyone to create new markets, provide liquidity, and build financial applications that could not have existed before.
In DeFi, liquidity providers provide a pair of tokens that go into the market’s pool. Normally, when a user makes a swap, the transaction fee is the cut for a liqudity provider (LP).
LPs have the opportunity for yield farming too. In this case, if you want to purchase $1, 000 worth of BNB, you must first purchase $1, 000 worth of Qi.
QiSwap has 5 native and 9 non-native pools where some pools offer $2 400 APR (annual percentage rate). The project also supports Initial farm offerings (IFO) which presents an opportunity to get in early on a project.
QiSwap also gathers deposit fees from non-native pools and these are distributed to those staking Qi-BUSD LPs to earn Qi-BNB LPs.
LP tokens are also used on the NFT section of the site with fee distribution happening every 2 weeks.
$Qi the native token for QiSwap and is intended to create more value on the Qtum blockchain. The tokens are distributed to liqudity providers (LPs), presenting another reward that LPs get for investing in the QiSwap market.