Crypto-inflation is old news, thanks to CaramelSwap

4min Read

Posted: July 10, 2021

By: Anjali Sriniwasan

Journalist

Anjali Sriniwasan

Journalist

Posted: July 10, 2021

It is no wonder that so many decentralized yield farms are operating this year as cryptocurrency flies high. Nevertheless, crypto can now simply replace traditional bank services and offer more liberty for individuals.

Many of these platforms are, however, inflationary. That’s why a lot of people consider the crypto domain too insecure. This is where CaramelSwap steps in, willing to solve this issue.

A brief look at CaramelSwap

CaramelSwap is a new decentralized yield farm built with the aim of giving business enthusiasts a viable and low-cost blockchain bank service.

The project runs on Binance Smart Chain, with a deflationary token that provides greater interests – Caramel.

How is CaramelSwap playing a role in solving crypto inflation?

The cause for the inflation-prone effect of so many cryptocurrencies is because software developers commonly choose to launch their tokens on an ICO first, selling them at a lower price before releasing them on exchanges.

This results in increased demand, and eventually, too many currencies will be released from the overall supply. Thus, the value of the token decreases.

However, Caramel Swap unveiled its token directly on the market, without any presale. And this is just the first step.

To solve crypto-inflation once and for all, the platform uses two other features: the Mel requirement and the burning mechanism – to preserve the token’s value over time:

The crypto deposits have a 5% fee, of which 80% is burned
The crypto transfers have a 2% fee, burned as a whole

What’s the deal with Mel’s requirement?

The Mel Requirement is the feature that ends the mining pool’s exploitation. The idea is straightforward – you need MEL tokens to join certain farms and mining pools.

Basically, the investors will have to hold some amount of the native token to harvest, stake, and withdraw their profits. That way, the demand for MEL keeps increasing, and it helps to stabilize the price.

To enter in the BUSD-BNB Liquidity Pool, for example, you would need to own 300 MEL, being one of the pools with the highest APR.

CaramelSwap’s Roadmap

The team behind CaramelSwap has great plans for the platform and already added some great features – with the launch of Harvest Lockup.

This feature locks the harvests for a certain amount of time, each time the user stake or harvests. The ranges may vary, from 2 hours to 4 hours or more. After the time is passed, all the tokens farmed can be sent to the user wallet. This increases the safety of the platform and also helps to control inflation.

The team is willing to introduce other awesome features, described on their roadmap which were recently shared with the community, such as :

The referral program

If your friends join the platform through the invitation link you send them, you will get 1% of their individual rewards for the whole time they are active.

The NFT integration

CaramelSwap will give users perks through cards. The bigger your collection is, the greater is the prize. Holding 50 cards, for example, can give you the option to mine in any pool without any fees.

The Chiliz pool

This is built for football fans who want to link their crypto with the sports area. With this feature, you can farm MEL using the tokens of your favorite football teams, like Atletico de Madrid, or Juventus. A great way to support your idols and get profit at the same time.

And these are just a few. Soon they will implement a new website, a bridge from Binance to their network, and even their own exchange.