Boomswap FAQs
What is Boomswap?
Boomswap is a self-custodial decentralised exchange where all the world's currencies are tokenised and traded, peer-to-peer. It is made up of persistent smart contracts that run on the Boom blockchain and utilises an automated market maker model instead of traditional order-book based models. Boomswap has no single centralised authority that runs it and is seizure and censorship resistant, forever.
On Boomswap, anyone can create or fund a liquidity pair and earn fees of 1.60% on all trades. To create or add liquidity you will need an equivalent amounts of both assets.
On Boomswap, anyone can create or fund a liquidity pair and earn fees of 1.60% on all trades. To create or add liquidity you will need an equivalent amounts of both assets.
Why was Boomswap created? / Financial Markets Integration
Boomswap was created to foster cross-border trades, especially in emerging markets where 90% of all trades are settled in cash, by enabling instant payments in tokenised local fiat currencies. To achieve this, BoomDAO, the non-profit organisation that created Boomswap, has tokenised all the fiat currencies of the world into stablecoins that are backed and redeemable 1-to-1 by deposits in each country. This ensures seamless fiat off-ramp at scale because Boomswap's liquidity is backed by the most liquid asset of all, cash.
How is Boomswap different from other decentralised exchanges?
Unlike other decentralised exchanges, all the stablecoins on Boomswap can be off-ramped into goods, service and banks worldwide.
What are the Benefits of Tokenising Cash?
Tokenising cash expands its utility into DeFi which injects international demand and liquidity into them, reduces settlement costs, while enhancing transaction transparency, traceability and security.
What is the base currency on Boomswap?
The native cryptocurrency of the Boom blockchain and base currency on Boomswap is the Boomcoin (BMC) It is wrapped for trades on Boomswap and have the symbol "wBMC".
Why is Boomcoin unique compared to other cryptocurrencies?
Boomcoin is a unique cryptocurrency because its value is derived from its multiple utility. Boomcoin is the native asset of the Boom blockchain in which all transaction fees are paid, it is the base currency on Boomswap that all stablecoins are traded against, and it is the medium-of-exchange for goods and services in the Boom superapp.
What are the symbols of Boom tokenised currencies on Boomswap?
Boom tokenised currencies have a bXXX prefix appended to their ISO4217 currency code. For example bEUR is the symbol for Boom tokenised Euro stablecoin and bBTC is the symbol for Boom tokenised Bitcoin.
Who can create or fund a Pair on Boomswap?
Anyone can create or fund a liquidity pair and earn fees of 1.60%, on all trades. To create or add liquidity you will need equivalent amounts of both assets. For example, to create or add liquidity to the trading pair of BMC/bNGN, you will need equivalent amounts of both assets and you will earn fees in both currencies.
Are all Boom Stablecoins Backed by Fiat?
Yes, all the tokenised assets traded on Boomswap are backed and redeemable 1-to-1 by physical deposits of the underlying real world asset. For example, in order to mint a Boom tokenised Euro, €1 in fiat must first be deposited in a bank in the euro-zone.
What is a Boomswap Liquidity Pool/Pairs?
Boomswap liquidity pools are a collection of tokens on the Boom blockchain that are locked in a smart contract and used for trading between tokens.
Liquidity pools are intended to replace traditional order books by directly matching buyers and sellers. They are the backbone of DeFi platforms, bringing together people eager to supply their assets and people looking to trade or borrow those assets.
Participants contribute to a shared pool of liquidity by depositing tokens into a liquidity pool, which ensures the continued availability of assets for trading, lending, and other financial operations.
Liquidity pools are intended to replace traditional order books by directly matching buyers and sellers. They are the backbone of DeFi platforms, bringing together people eager to supply their assets and people looking to trade or borrow those assets.
Participants contribute to a shared pool of liquidity by depositing tokens into a liquidity pool, which ensures the continued availability of assets for trading, lending, and other financial operations.
Boomswap Liquidity Provision Explained.
A Boomswap liquidity pool is the trading arena for a pair of tokenised fiat currencies. Anyone can create a pool/pair and once created, the balance of each currency is zero. In order for the pool to begin facilitating trades, someone must seed it with an initial deposit of each currency. This first liquidity provider is the one who sets the initial price of the pool.
Whenever liquidity is deposited into a pool, unique tokens known as Boomswap LP Tokens (LP Tokens) are minted and sent to the LP’s wallet. These tokens represent a given LP’s contribution to a pool. The proportion of the pool's liquidity provided determines the number of liquidity tokens the provider receives. If the provider is minting a new pool, the number of liquidity tokens they will receive will equal √(x * y), where x and y represent the amount of each currency provided. Whenever a trade occurs, a 1.60% fee is charged to the transaction sender. This fee is distributed pro-rata to all LPs in the pool upon completion of the trade.
To retrieve the underlying liquidity, plus any fees accrued, LPs must "burn" their LP Tokens by exchanging them for their portion of the liquidity pool, plus the proportional fee earned.
As LP tokens are themselves tradable assets, liquidity providers may sell, transfer, or otherwise use their LP tokens in any way they see fit.
Whenever liquidity is deposited into a pool, unique tokens known as Boomswap LP Tokens (LP Tokens) are minted and sent to the LP’s wallet. These tokens represent a given LP’s contribution to a pool. The proportion of the pool's liquidity provided determines the number of liquidity tokens the provider receives. If the provider is minting a new pool, the number of liquidity tokens they will receive will equal √(x * y), where x and y represent the amount of each currency provided. Whenever a trade occurs, a 1.60% fee is charged to the transaction sender. This fee is distributed pro-rata to all LPs in the pool upon completion of the trade.
To retrieve the underlying liquidity, plus any fees accrued, LPs must "burn" their LP Tokens by exchanging them for their portion of the liquidity pool, plus the proportional fee earned.
As LP tokens are themselves tradable assets, liquidity providers may sell, transfer, or otherwise use their LP tokens in any way they see fit.
What fees do Liquidity Providers (LP) earn on Boomswap?
Liquidity providers earn a 1.6% fee on all trades that utilise their pool/pair as a reward for supplying their currencies to inject liquidity to pools. This fee is deducted from the input currency and is paid proportionally to all LPs that have an active liquidity position. Liquidity provider fees are paid entirely to LPs and BoomDAO does not receive any of these fees.
How does Liquidity Provision Work?
When you create a liquidity position on Boomswap, you will receive Boomswap LP tokens in your wallet that represents the amount of liquidity you provided. These LP tokens are redeemed for underlying assets and earned fees when you remove liquidity from a pool.
What other fees are deducted from trades?
In addition to LP fees, a 0.3% protocol fees is retained. So, in total, all swaps incur a 1.60% liquidity provider fees and a 0.30% protocol fees that goes to BoomDAO.
Are fees Auto-Compounded into Pools as they are Earned?
Yes, earned LP fees are auto-compounded into the pool, meaning that with every swap/trade, the fees go back into the pool making it bigger.
Who can be a Liquidity Provider on Boomswap?
Anyone can be a liquidity provider as long as they have the base currency, BMC and an equivalent amount of another asset.
How do I Fund my Wallet with BMC?
You can fund your wallet with BMC in fiat via BMC resellers, peer-to-peer in-app via the Boom superapp human ATM (hATM) network or institutionally from BoomDAO.
How do I Fund my Wallet with Boomswap Stablecoins?
Boomswap stablecoins can be acquired on Boomswap or from BoomDAO merchants.
How do I Withdraw my Liquidity Position?
Go to pairs, connect your wallet and click withdraw liquidity on the Boomswap app.
How do I cash-out from Boomswap to my Bank?
Boomswap is the first decentralised exchange where users can trade fiat (on-ramp) for tokenised fiat and trade tokenised fiat directly back into their banks (off-ramp) in any of the supported currencies, instantly.
How do I manually add Boom Network and BMC to Metamask?
The Boom blockchain is built using the Ethereum Virtual Machine, the most commercially deployed blockchain technology in the world. As such, it supports all Ethereum wallets like Metamask, out-of-the-box.
Boomcoin (BMC), the Boom Blockchain’s native cryptocurrency can be managed using the Boom wallet and/or any Ethereum-compatible wallet e.g. Metamask, Ledger, etc.
Boomcoin (BMC), the Boom Blockchain’s native cryptocurrency can be managed using the Boom wallet and/or any Ethereum-compatible wallet e.g. Metamask, Ledger, etc.
- Use the following credentials to connect to the Boom Network through Metamask:
- 1. Login to Metamask and go to Settings > Network > Add a network
- 2. Network Name: Boom Mainnet
- 3. New RPC URL: https://rpc.boomscan.io
- 4. Chain ID: 1338
- 5. Currency Symbol: BMC
- 6. Block explorer URL: https://boomscan.io
- 7. Save and close.
- 8. Click on Ethereum and select Boom Mainnet from the drop down.
Is Boomswap compliant with regulations on Money Laundering?
While Boomswap is a self-custodial decentralised exchange that anyone can access, off-ramping to fiat is only possible at scale via banks. This ensures that customers that are off-ramping are already bank-regulatory compliant.
Boom Real World Asset (RWA) Tokenisation
What’s is Real World Asset Tokenisation?
Real World Asset (RWA) Tokenisation is the process of creating a unique digital representation of a real thing on a blockchain.
Why does Boom Holdings Tokenise RWA?
Boom Holdings (“Boom”) tokenises RWA to democratise access to equity and capital, while ushering in a new world of decentralised commerce where assets are owned by all participants, rather than a handful of corporations, and value is moved around the world instantly on the open and transparent Boom blockchain.
What are the benefits of RWA Tokenisation?
- 1. 24/7 availability
- 2. Instant global mobility
- 3. Fractional ownership
- 4. Increased liquidity
- 5. Open and transparent
- 6. Extend utility to smart contracts for staking, loans, and more
- 7. Instant settlements
- 8. Democratisation of equity
- 9. Lower transaction costs
- 10. Environmentally-Protective
How does the Boom Tokenise RWA?
- 1. Physical asset to be tokenised is verified, valued and handed over to a third-party custodian who issues a proof-of-reserves.
- 2. Based on the verified value, Boom Holdings mints an equivalent value amount of Tokens.
- 3. Investors and traders buy the tokens and trade them on Boomswap and other digital asset exchanges.
What is Boom Environmentally-Protected RWA Tokenisation?
Boom’s Environmentally-Protected RWA Tokenisation is the process of tokenising unharvested commodities to enable the asset owner to access the embedded capital without going through the environmentally-disruptive process of extracting the asset. For instance, mining commodities negatively impacts the environment because it causes contamination of soil, ground and surface water by chemicals emitted during the process, some of which increase carbon emissions and contribute to climate change.
What are the Benefits of Environmentally-Protected RWA Tokenisation ?
- 1. Instantly unlock capital from asset below-ground
- 2. Environmentally-friendly with zero impact on environment
- 3. Zero carbon footprint
- 4. Enhances asset transparency
- 5. Reduces custody costs as the Earth is the custodian
What are examples of Environmentally-Protected RWA that Boom can Tokenise?
Boom can tokenise Environmentally-Protected RWA such as commodities below-ground e.g. Gold, Silver, Platinum, Crude oil, Lithium, Cobalt, Bauxite, unharvested forests and more.
I would like to Tokenise my Environmentally-Protected Real World Asset. Who should I contact at Boom?
Please contact the Boom EPR Team at EPR-Tokenisation@boom.market
Boomcoin FAQs
What is Boomcoin (BMC)?
Boomcoin (BMC) is a unique cryptocurrency that derives its value from multiple utility. It is the only acceptable form of payment for fees, goods and services across the entire Boom ecosystem. Boomcoin is the native asset of the boom blockchain, the base currency of Boomswap that all stablecoins are traded and routed against and the medium-of-exchange for goods and services in the Boom superapp.
What is the Boom?
According to the world bank, 1.7 billion adults (including 1 billion women) in Africa, Latin America, South-East Asia, and certain parts of Europe and North America representing 35% of the world's adult population, have no bank accounts and are therefore excluded from the global digital economy. They are referred to as the unbanked.
Despite having an annual purchasing power in excess of $5 trillion, the unbanked are unable to buy and sell online.
With a clear mission to empower humanity globally, Boom enables financial inclusion for the unbanked, offering a comprehensive blockchain-based ecosystem that empowers everybody to transact online without banking.
At its core is the Boom blockchain and its native currency, Boomcoin enabling instant transaction settlements locally and across borders. The Boom blockchain is also home to the Boom superapp, which encompasses the Boom Marketplace for all goods and services, Boom Wallet for payments, Boom Talks for secure communication, and Boom Hose for community engagement. The third pillar of the Boom ecosystem is Boomswap, a self-custodial decentralised digital asset exchange which serves as the liquidity engine that enables consumers and merchants all over the world, to pay for goods and services across-borders, in their local fiat currencies.
Despite having an annual purchasing power in excess of $5 trillion, the unbanked are unable to buy and sell online.
With a clear mission to empower humanity globally, Boom enables financial inclusion for the unbanked, offering a comprehensive blockchain-based ecosystem that empowers everybody to transact online without banking.
At its core is the Boom blockchain and its native currency, Boomcoin enabling instant transaction settlements locally and across borders. The Boom blockchain is also home to the Boom superapp, which encompasses the Boom Marketplace for all goods and services, Boom Wallet for payments, Boom Talks for secure communication, and Boom Hose for community engagement. The third pillar of the Boom ecosystem is Boomswap, a self-custodial decentralised digital asset exchange which serves as the liquidity engine that enables consumers and merchants all over the world, to pay for goods and services across-borders, in their local fiat currencies.
Who is the Founder of Boom and creator of Boomcoin?
Peter Alfred-Adekeye is the Founder of Boom and creator of Boomcoin.
Peter is a serial technology entrepreneur who started his career as an engineer at IBM in the UK, later becoming a technical leader at Cisco in silicon valley where he led a team that was responsible for maintaining the integrity of IOS, the software that ran majority of the internet. Peter left Cisco to found Multiven in Palo Alto as the world’s leading provider of independent software maintenance and cyber-defence services for the Internet. Peter led a series of successful legal battles with Cisco that eventually helped to set the internet free, paving the way for today’s safer and open Internet that has helped innovations such as blockchain technology to thrive atop it.
To create Boom, Peter drew on his deep knowledge of computer science, cryptography and engineering. He founded the Pingsta intellectual network for engineers, cryptographers, and scientists in 2007; its members included the late renowned cryptographer Hal Finney who was integral to the birth of bitcoin.
Peter holds a BSc in Civil Engineering from Obafemi Awolowo University in Nigeria and has completed Leadership Executive Programs at Stanford University in California. Source:https://adekeye.family
Peter is a serial technology entrepreneur who started his career as an engineer at IBM in the UK, later becoming a technical leader at Cisco in silicon valley where he led a team that was responsible for maintaining the integrity of IOS, the software that ran majority of the internet. Peter left Cisco to found Multiven in Palo Alto as the world’s leading provider of independent software maintenance and cyber-defence services for the Internet. Peter led a series of successful legal battles with Cisco that eventually helped to set the internet free, paving the way for today’s safer and open Internet that has helped innovations such as blockchain technology to thrive atop it.
To create Boom, Peter drew on his deep knowledge of computer science, cryptography and engineering. He founded the Pingsta intellectual network for engineers, cryptographers, and scientists in 2007; its members included the late renowned cryptographer Hal Finney who was integral to the birth of bitcoin.
Peter holds a BSc in Civil Engineering from Obafemi Awolowo University in Nigeria and has completed Leadership Executive Programs at Stanford University in California. Source:https://adekeye.family
How Many Boomcoins are in Circulation?
- Total maximum supply: 2 billion (All pre-mined)
- Global disbursement to Boomswap Liquidity Providers in 150 Countries: 1.50 billion
- Boom Team & investors allocation: 450 million
- Boom Foundation: 50 million
Where can I buy Boomcoin?
BMC can be purchased p2p directly within the Boom wallet hATM network, on Boomswap and from liquidity merchant partners globally with cash, bank transfer or with crypto.
How can Boomcoin be used as a store-of-value?
Boomcoin’s total supply is permanently limited to 2 billion and as such, it can be used as a store of value to hedge against fiat inflation.
How is Boomcoin a medium-of-exchange?
Boomcoin can be exchanged for goods and services within the Boom superapp.
Is Boomcoin Political?
No, Boomcoin is politically and financially neutral.
How does Boomcoin avoid Centralisation?
To avoid the centralisation of Boomcoin within one market or jurisdiction, BoomDAO is distributing 75% of its total supply i.e. 1.5 billion BMC, to liquidity Providers at the rate of 10 million per country across 150 countries worldwide. This avoids centralisation and ensures that people in all countries benefit from its utility and created growing value.
How does Boomcoin compare with other leading cryptocurrencies?
Boomcoin has been labelled “the Bitcoin for everyday commerce” because of its multiple utility and limited supply.
What is BoomDAO?
Boom DAO is a decentralised community-driven organisation that oversees the Boom ecosystem which comprises of the Boom e-commerce super-app for the unbanked, Boomswap, a decentralised, self-custody token exchange and Boom Foundation, a non-profit focused on impact investments for social good using its grant of 50 million Boomcoins.
Is Boom compliant with regulations on money laundering?
Yes, the Boom superapp is fully compliant with the EU’s anti-money laundering directives by ensuring that all customers are KYC verified, all businesses are KYB-validated and all transactions are KYT-compliant.