What Is PancakeSwap
Binance has long been the top exchange in cryptocurrency, but its new decentralized trading platform is giving it some serious competition.
PancakeSwap offers a wide variety of BEP-20 tokens and eliminates counterparty risk by executing trades automatically via smart contracts — all without relying on centralized services or losing control over your private keys! If you are looking for an easy way to trade securely with massive liquidity while staying true to your values, this may be just what you’re looking for.
Since its launch in September 2020, it has seen rapid growth in users, liquidity-supported assets, and various features. With its unique utility token CAKE at center stage for all tools, Pancakeswap is a whole ecosystem to build a de-facto financial future around.
What Is A Cake?
CAKE, the native utility token of PancakeSwap, has various purposes within its growing landscape. Some main functions are yield farming and staking through participation in the PancakeSwap Lottery and voting on proposals using the community governance portal.
The liquidity in the system is contributed by users who add equal values on both sides of a liquidity pool to increase the total amount. Users receive LP tokens that represent their share in this particular pool. They need to return these tokens before retrieving their fraction from it; In return for providing such liquid funds, LPs are rewarded with a percentage cut off each transaction fee generated by any pools under which they contribute. There’s only one flat 0%0.25% maker-taker cost per trade (most fees go towards sharing among providers).
As a DApp, you can access it through web wallets. PancakeSwap supports one such wallet, TrustWallet, MetaMask, and WalletConnect, to allow users to interact with their smart contracts via an intuitive interface that allows for easy swaps of pancakes as well as other items!
The treasury funds the PancakeSwap platform with up to 15% of all trading fees. Funds from the treasury can be used for various purposes related to maintaining and improving this revolutionary cryptocurrency exchange marketplace, like hosting costs or bounties.
Updates on PancakeSwap
PancakeSwap has seen several upgrades since 2020, and its developers are not stopping there. In April 2021, released PancakeSwap V2 by introducing new features such as syrup pools that compound interest automatically.
This change in fee schedule from 0.2% to .25% follows a referral program that earns users CAKE tokens for referring their friends and family members to Pancakeswaps’s platform – a fantastic way to earn passive income!
What Makes PancakeSwap Unique
PancakeSwap is a decentralized exchange with low transaction fees, fast confirmation times, and no displacement attacks.
On top of this, it also offers prominent secondary features such as:
Initial Farm Offerings
PancakeSwap is an exciting new decentralized exchange. That allows early-stage investors to buy tokens of emerging projects before their public launch.
Similar to a DEX, users can purchase the token during Pancake’s Initial Farm Offering (IFO). And trade it for other cryptocurrencies on our platform. As part of this process, half the total funds are burned. Adding another deflationary mechanism into place for CAKEs in particular.
Yield Farms
PancakeSwap can generate significant interest for users. By allowing them to participate in the yield farm and earn an additional CAKE on their LP tokens.
The exact APY varies from farm to farm but can be up to a few hundred per cent per year!
Syrup Pools
Syrup pools are like simple staking functionality for PancakeSwap. Through the platform’s Syrup pools, users can stave several BEP-20 tokens to earn a CAKE or another reward.
Lottery V2
With the lottery feature, PancakeSwap has a chance to take down an enormous pot of CAKE. You can buy your tickets for around $5 at current rates and get up to 4.95% off. When you purchase 100 tickets all in one go! There is a 40% allocation for those matching six numbers on their ticket- with prizes that they share equally among winners if they do so successfully!
Other features include prediction markets, NFT Collectibles.
Final Thought On PancakeSwap
PancakeSwap is a secure and easy way to trade with enormous liquidity while maintaining your values. If you are into the crypto world or you are coming in, you should consider using it.