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What is PancakeSwap: an overview of the exchange and its tools

Despite regulatory pressure, members of the cryptocurrency community can work with digital assets in complete anonymity. Decentralized cryptocurrency exchanges (DEX) help investors maintain their privacy. PancakeSwaphas become one of the most popular trading platforms in this area.

What is PancakeSwap

PancakeSwap is a digital asset-oriented decentralized exchange (DEX). That is, this exchange does not work like Kucoin, or other centralized exchanges. The platform runs on the blockchain of the largest centralized cryptocurrency exchange Binance – Binance Smart Chain (BSC), and therefore supports BEP-20 tokens. At the same time, developers have offered users tools through which the platform can also interact with assets of other standards.

How to add your coin to PancakeSwap? The decentralized PancakeSwap exchange works based on the AMM (Automated Market Maker) algorithm. It is an automated system, which independently regulates prices of assets in the liquidity pools and provides instant transactions. DEX uses smart contracts to automate the system. 

Project history

PancakeSwap launched in September 2020. During this period, Ethereum came under serious strain amid the growing popularity of DeFi. As a result, market participants recorded an increase in the price of transactions on the project’s blockchain. The changes negatively affected the cost of transactions on Uniswap and other Ethereum-DEX. 

What coin does PancakeSwap use? CAKE: All you need to know

Where to buy a PancakeSwap coin? The decentralized crypto exchange PancakeSwap has a native CAKE token. Its issue is unlimited. CAKE is required for transactions on PancakeSwap. Tokens are also used for voting.

Is PancakeSwap coin a good investment? To fight inflation on the background of the unlimited CAKE issue, the developers decided to make PancakeSwap coin burn. The process involves artificially reducing the supply of the cryptocurrency. Limiting the volume of available CAKE, from the point of view of supporters of the burning mechanism, maintains the value of the asset (by forming a deficit). PancakeSwap coin chart shows positive dynamics. 

About the commissions

The exchange charges 0.25% of the amount for trading operations. The system divides the assets as follows:

  • 0.17% goes back to the pools as a reward to liquidity providers.
  • 0.03% goes to the project treasury (PancakeSwap Treasury).
  • 0.05% is used to redeem and then burn CAKE.
  • This approach is aimed at increasing user interest in the project by supporting its profitability.

What makes PancakeSwap different from other DEX

Low commissions and high bandwidth are not enough to lure users from other DEX. Special tools and services helped the developers of the project to increase its attractiveness. Here they are:

1. Initial Farm Offering (IFO)

This term stands for the initial sale of tokens. PancakeSwap IFOs are especially interesting for representatives of new blockchain projects. The fact is that Initial Farm Offering involves the following listing of the startup’s tokens on DEX itself.

Another name for IFO is IDO (Initial DEX Offering). The term can be translated as “Initial Offering on a decentralized exchange”.

2. Predictions 

This is a tool for earning on predictions of the movement of the BSC – BNB native token in pair with the USDTstablecoin. The system offers a prediction of cryptocurrency movement for 5 minutes. If PancakeSwap coin price prediction proves to be correct, the user receives a win. The amount of payout is fixed in the prediction card. Also you can see Fantom and Iota price predictions.

3. Lottery

Lotteries at PancakeSwap are held every 6 hours. To participate, you need to buy a ticket for $5. Afterwards, the system will give out 6 numbers ranging from 1 to 14. The participant’s task is to guess them. Whoever guesses the most numbers correctly claims the largest part of the pot.

4. The NFT section

PancakeSwap supports non-mutually exchangeable tokens (NFT). Within the walls of the platform, you can sell, buy, and exchange assets on Binance Smart Chain.

5. Competitions for traders

In the section, developers offered users to compete for the largest trading volume. Traders are available as a team and personal scoring.

6. “Syrup” pools

In “syrup” pools, you can earn on CAKE staking. Rewards are paid in tokens of a particular pool. Some of them offer CAKE payouts. The syrup pools page has tools to sort the offers by various criteria, from annual returns, to the amount of blocked funds.

How to make money with PancakeSwap

There are several ways to make money with PancakeSwap. For example, you can become a liquidity provider. To do this, you need to lock your assets in the pool. After that, you can earn income from farming. Also, crypto exchange users can earn from “syrup” pools, lotteries, predictions, and crypto exchange competitions.

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