The PancakeSwap protocol is no trick, despite its humorous name. Nearly $100 million worth of trades occurs every day on this DApp, which is one of the most popular of all time.
In less than one year, it has turned into one of the most significant DEX on Binance’s Smart Chain, even outperforming Binance’s own Binance DEX, which is only assumed a meteoric increase and adoption. What makes it so appealing? Find out below.
- 1 The PancakeSwap exchange
- 2 The PancakeSwap Access
- 3 What is CAKE?
- 4 The PancakeSwap Differences
- 5 Wrapping Up
The PancakeSwap exchange
The PancakeSwap platform operates a self-regulating market maker (AMM) approach. This indicates that this service does not offer an order book where you are matched with someone else, as digital acquisitions may be traded on the service venue. Rather, you trade against a liquidity pool.
Customers deposit money into the pool, accept liquidity provider (LP) tokens back, and can then reclaim their share as well as a piece of the trading fees. In brief, while BEP-20 tokens may be traded, you may also add liquidity and accumulate bonuses.
More on these other features later. To get these LP tokens, you will receive BUSD-BNB LP tokens if you have added BUSD and BNB to the pool, BETH and ETH if you have added BETH and ETH, etc.
The PancakeSwap Access
To use PancakeSwap, customers may install Trust Wallet, MetaMask, or WalletConnect on your Web3 wallet.
Then configure PancakeSwap to operate with Binance Smart Chain.
Once installed, the PancakeSwap front-end allows you to interact with the smart contract through a straightforward layout.
The Binance smart chain is utilized by these online wallets to access PancakeSwap smart contracts.
How does it work?
The online platform is financed by the PancakeSwap treasury, which gains 15% of all trading expenses.
To ensure the ongoing operation and supervision of the PancakeSwap service, the treasury may use the finances for a mixture of services, including paychecks, audits, rewards, hosting, etc.
What is CAKE?
The PancakeSwap feature utilizes CAKE as its native token to facilitate a number of operations.
Among other things, it can be used to earn yield farming, stake PancakeSwap tokens, vote on governance submissions through the platform’s community governance portal, as well as create and vote on suggestions.
In addition to acquiring CAKE tokens, which you can earn by depositing LP tokens on the farm, you have also the chance to earn BNB LP by locking up BNB tokens. Here are some of the most popular LP tokens that can be deposited:
- CAKE – BNB LP
- BUSD – BNB LP
- BETH – ETH LP
- USDT – BUSD LP
- USDC – BUSD LP
- DAI – BUSD LP
- LINK – BUSD LP
- TWT – BNB LP
You’ll also be rewarded with additional CAKE tokens if you stake your CAKE in SYRUP pools. Be sure to keep an eye on the SYRUP pool page to see what additional CAKE tokens you can earn.
The PancakeSwap Differences
What makes PancakeSwap distinct?
If you are a fan of food-themed protocols, you will like this one. PancakeSwap, a Binance Smart Chain implementation, utilizes many of the distinctive features to supply a superb trading adventure to end clients.
In addition to being charged with minimal transaction fees and quick validation times, PancakeSwap also avoids front-running, a common menace in blockchains with a slower block time.
Some other AMMs besides front-running might be susceptible to eviction attacks, turning PancakeSwap safer to operate than some other cryptocurrencies.
Besides this, PancakeSwap also delivers a stock of not important options, most of which deliver supplementary utility to CAKE holders. The most well-known of these presently are:
Staking sustained liquidity provider (LP) tokens in a yield farm is one of the two mechanisms of initial farm offerings (IFOs) offered by the PancakeSwap platform.
The other one is the initial deX offering (IDOs). In this scenario, customers exchange their CAKE-BNB liquidity provider (LP) tokens for unique project tokens while an initial farm offers (IFO) employing the same CAKE-BNB LP tokens.
The CAKE half of the equation is destroyed as part of the process. Some assignments established operating this procedure include Ditto, Soteria, and Hot Cross.
PancakeSwap permits customers to receive extra CAKE yields on their LP tokens by staking them in unique yield farms. The APY for each farm can range, with APYs varying from hundreds of percent to some hundred percent.
A syrup pool functions in the same way as a superficial staking function on PancakeSwap. Through the Syrup Pools platform, customers can stake BEP-20 tokens to earn CAKE or another reward token through the syrup pools.
The APY for each pool will vary and customers must determine the real yield using the changing value of their staked assets.
Unlike many decentralized exchanges, PancakeSwap also presents a lottery component— permitting customers to get lottery tickets for a prospect to win a large CAKE prize.
Lottery tickets cost around $5 in CAKE at present prices, but customers can acquire a 4.95% discount by contributing 100 tickets at once. 40% of the prize pool is distributed to customers who reach all six digits on their lottery ticket, with the reward disseminated equally among all winners.
Prediction Markets and NFT Collectibles
Binance Coin predictions are part of PancakeSwap’s basic prediction market tool. Some customers can use this feature to forecast whether BNB’s price will rise or fall within the next five minutes.
Every time a correct prediction is driven, the prize pot is split between all the participants. However, if a participant loses, he or she has to pay the amount he or she bet. As of July 2021, the most prevalent team is Syrup Storm.
NFT Profiles have been added to PancakeSwap, allowing clients to pick an NFT profile picture after buying one of the unrestricted Bunny NFTs.
Customers with a completed profile will also be able to join teams that will be allowed to partake in memorable team amenities to accumulate rewards.
Is PancakeSwap safe?
CertiK has audited PancakeSwap.
Is it 100% safe to use?
Yes & No, because smart contracts can always be plagued by bugs. Never send more funds than you are prepared to lose.
Is PancakeSwap the biggest DeFi project on Binance Smart Chain (BSC)?
You can track a lot of its performance data on https://pancakeswap.finance/info/.
Is Ethereum responsible for kickstarting the DeFi revolution?
PancakeSwap is one of the examples of how other chains are going to be innovated by the wave of innovation.