Taco Finance – Serving Up Tasty Yields on the Binance Smart Chain
The Binance Smart Chain (BSC) is becoming the hottest new hub for DeFi projects. Despite being a relatively new platform, having only launched in September 2020, the BSC is attracting DeFi projects in droves, and in turn, deeper liquidity. In February, PancakeSwap became the first billion-dollar project, established Ethereum DEX aggregator 1Inch has set up home there, and 2021 transaction volumes are on a skyward trajectory. When you consider that the average transaction fee on Ethereum has topped out above $20 this year, it’s hardly surprising that the low fees and fast block times of the BSC are proving to be so attractive.
Now, there’s a new yield farming exchange in town to complement existing incumbents like PancakeSwap and SushiSwap while providing yet more liquidity to the burgeoning DeFi ecosystem. Taco Finance is a decentralized yield farm on the Binance Smart Chain, with the TACO token listed on PancakeSwap.
What Makes Taco Finance Different?
Taco Finance has a few unique twists, including a deflationary price model for TACO, and a timelock of 48 hours on any changes to token smart contracts, as a way of preventing the kind of “rug pulling” that’s sadly become all too common in the DeFi sector.
The price model is based on token burns, which are known to help increase prices by reducing the circulating supply, and thus concentrating demand on a smaller market. Taco Finance charges a 5% deposit fee for staking in its pools, of which 80% will be burned and used to buy back TACO coins. This mechanism is designed to offset the significant inflationary effects that happen for yield-farmed tokens.
The remaining 20% of fees will contribute to the Taco Finance developer fund.
The team at Taco has also taken the step of removing the migrator function from the protocol’s underlying code and implementing a 48 hour time lock. This prevents last-minute changes of strategy by token issuers and is designed to protect users from malicious projects “pulling the rug” out from under unwitting investors.
Taco Finance’s code is based on Goose Finance, and the project has published its audit report from Hacken on its website. The report findings show Hacken’s security team discovered no critical or high severity issues.
Since launching on February 26, Taco Finance has posted some impressive stats. Within 48 hours of launching, $6 million worth of assets had been added to the protocol. On March 3, the project announced that it had burned $25,000 worth of TACO tokens on “TacoTuesday.”
The Road Ahead
In a blog post from March 4, Taco Finance confirmed its short-term roadmap would involve launching new farms and pools, including a TACO-USDT farm and a TACO-USDC farm. The team is also working on establishing partnerships and listings with other members of the BSC ecosystem and plans to run giveaways and other promotions to grow its community. These will be announced via the Taco Finance Telegram group and Twitter channels.
So the BSC ecosystem adds another DeFi project to its roster, and there are sure to be more to follow. 2021 looks set to be the year that DeFi finally breaks free of the shackles of Ethereum and expands to other platforms that can offer lower fees and a smoother user experience.
Did you like the news you just read? Please leave a feedback to help us serve you better
Disclaimer: Blockmanity is a news portal and does not provide any financial advice. Blockmanity's role is to inform the cryptocurrency and blockchain community about what's going on in this space. Please do your own due diligence before making any investment. Blockmanity won't be responsible for any loss of funds.