Degen Zoo Price

Introduction to DZOOTokens

DZOO (Degen Zoo) is a token based on the Binance Smart Chain (BSC). Its farm and mine mechanism is different from other PoS (Proof of Stake) or PoW (Proof of Work) systems, using a method called “Automated Market Maker” (AMM).

AMM Mechanism

AMM is a decentralized trading method that does not require matching between buyers and sellers but automatically completes trades through smart futures. This mechanism relies on a special funding pool called a “liquidity pool,” which holds two different tokens. In the DZOO farm and mine, these two tokens are BUSD and DZOO.

Farm and Mine Process

The DZOO farm and mine process is accomplished by providing liquidity. When someone deposits BUSD and DZOO into the liquidity pool, they receive a token called the LP token (Liquidity Provider token). These LP tokens represent their share of the BUSD and DZOO invested in the liquidity pool. Whenever someone trades in the liquidity pool, they must pay a certain fee. These fees are distributed to liquidity providers as a reward for contributing liquidity.

Summary

DZOO is a token based on BSC, utilizing the AMM mechanism and liquidity pools to facilitate farming and mining. It allows individuals to exchange between BUSD and DZOO and provides rewards in tokens and fees for those who supply liquidity.