PancakeSwap
PancakeSwap is an exchange powered by Binance Smart Chain. It allows the modification of the BEP20 symbol. Unlike traditional cryptocurrency exchanges like Coinbase and Binance, a decentralized exchange like PancakeSwap is not a central authority or law. Also, this decentralized exchange allows its users to trade their tokens without a middleman. It is very similar to Uniswap, which is a DEX built on the Ethereum network.
Pancakes are built on the Binance Smart Chain, so they have an edge over their competitors. Many DEX and DeFi applications are based on Ethereum.
As a result, they suffer from network compression problems, so the fees for trading DEXs like Uniswap skyrocket. On the other hand, Binance Smart Chain is a newcomer to the world of smart contract blockchains. As a result, sums are lower and as a result, transaction fees on PancakeSwap are lower than their competitors. This made this new service gain a lot of popularity within a short period of time.
Founder of PancakeSwap
PancakeSwap is a community-based service with a Decentralized Autonomous Organization (DAO) responsible for development, governance and decision-making processes. It allows token holders to vote on plans and project directions. In short, the founder(s) behind PancakeSwap is/are anonymous, but the project is community-led, the development team is active in the community and in constant communication with users.
Pancake exchange supply
The total supply of CAKE, PancakeSwap’s flagship, has now reached 350 million. This cap should not change and the supply of CAKE should be increased only through the agricultural system and which provides income on the platform. When users add funds to the platform, they receive water tokens in return, representing their share of water in a pool.
These tokens can be used to earn CAKE as a reward for fundraising. The amount CAKE pays out as a prize depends on several factors, including the size of the pool, the duration of the bet, and the total amount of CAKE.
In addition to the farming process, CAKE can be earned by holding tokens and participating in governance through PancakeSwap’s Decentralized Autonomous Organization (DAO).
The Locked Value (TVL) of PancakeSwap also shows the popularity of PancakeSwap, since the more money and transactions there are on the platform, the higher the TVL will be.
In general, it is important to note that the distribution of CAKE will increase over time due to agriculture and water on the platform. Even so, the total supply of the token covers 350 million, so its price may increase over time, depending on the demand and supply capacity in the market.
How PancakeSwap works
As mentioned above, PancakeSwap is an exchange that runs on the BNB Chain. It works in the Automated Market Maker (AMM) model instead of the traditional market model, in which there is a seller and a buyer. In the AMM model, buyers use an unlicensed pool to sell digital assets.
People invest their money in these pools.
In return, they receive the LP (liquid supplier) token. They also receive a commission for making their assets available for lending. On the other hand, those who want to use this liquid pay for the DeFi platform. These fees are distributed among the contributors to the pool. In this pool, money is deposited in the PancakeSwap bank account to support the platform.
The AMM model allows you to earn money by creating funds for the pool. The more you give, the more you get back.
You can trade LP tokens for profit. In addition, they can be reported in another pool to earn the BEP-20 tokens known by PancakeSwap as CAKE. That’s not all: there are other types of swimming that are more rewarding than others. These are called SYRUP ponds. People can deposit their CAKE tokens to get more rewards in the SYRUP pool.
Benefits of Pancake Swap
PancakeSwap removes all these concerns as it comes out of the confines of the Ethereum ecosystem. Binance Smart Chain was created to correct all of these practices and provide a valuable alternative for users. This process has helped the platform stand out from the growing DEX competition.
Choice
Another important benefit that PancakeSwap users get is access to new logos. Smartly, PancakeSwap allows users to transfer USDT, BTC, BUSD, and ETH via ETH wire to BSC using a deposit scheme. You can get all the best services in the market. You can also find a great selection of unique BEP-20 stamps and other rare and hard-to-find works.
Connection together
One of the main concerns of PancakeSwap users is to maintain some level of connection between the two blockchains. The developers of PancakeSwap understand that the majority of their users will come from the Ethereum ecosystem and they want to improve this process. As part of this initiative, the platform is designed to integrate popular wallets including Trust Wallet, TokenPocket, WalletConnect, MathWallet, and MetaMask. Clearly, MetaMask is ahead of the curve as their wallet is designed to support BEP-20 tokens alongside ERC-20 tokens.
How to buy Pancake Exchange Coins (CAKE)
To buy PancakesSwap Coin, users can exchange Bitcoin or Komodo Standard via peer-to-peer exchange. For larger transactions, it is recommended to use a verified atomic exchange. Exchanges like Bittrex, Poloniex, or Binance are great options for large trades.
