PancakeSwap, which launched in 2020, is a decentralized exchange (DEX) on the Binance Smart Chain (BSC) that employs permissionless liquidity pools that are operated by algorithms and hence automated.
PancakeSwap is used for trading various tokens, hence providing liquidity for exchange pools.
|Trading Platforms||Wallet, web, and mobile|
|Trading Fees||From 0.57 to 3.00 ZAR|
PancakeSwap is a prominent cryptocurrency DEX, and CAKE is a popular coin in the business. The following are the essential elements and takeaways from PancakeSwap.
CAKE, PancakeSwap’s native token, is a BEP20 token based on BSC.
The exchange offers faster transactions and cheaper costs than other Decentralised Finance (DeFi) companies built on the Ethereum network.
PancakeSwap is in the same class as ERC20-based platforms like SushiSwap and Uniswap, both of which are Automated Market Makers.
AMM are exchanges that allow users to trade digital assets against various liquidity pools while also collecting yields.
This implies that the platform behaves more like a dividend-paying stock or a bond than a typical exchange.
Here an order book matches buyers and sellers and produces earnings only when customers sell their assets.
AMM allows users to lend their digital assets to liquidity pools in exchange for liquidity tokens, which they can then wager to gain even more digital assets.
PancakeSwap allows users to trade other BEP20 tokens and use cryptocurrencies to contribute liquidity to exchange pools, letting them earn extra tokens.
A trade view is available on every trading platform. The trade view is a section of the exchange’s website where you can examine a cryptocurrency’s price chart and current price.
There are usually buy and sell boxes where you may make orders for the relevant cryptocurrency.
You can also view the order history (i.e., previous transactions involving the relevant crypto).
On your desktop, everything is in the same view. Of course, there are variants to what we’ve just explained.
Pros And Cons
- High stake returns
- Low transaction costs compared to other systems
- A lot of variety of products
- Prediction and lottery is kind of gambling
- The network can easily get congested due to the popularity
- There is a potential for scams
Widely Used Features
The eponymous swap function is perhaps PancakeSwap’s most popular and simplest feature.
With a simple interface and low trading costs, you may swap between any of the assets offered on PancakeSwap, specify your chosen slippage tolerance, and execute trades in seconds.
PancakeSwap Exchange’s form of staking is syrup pools, where you may stake CAKE to earn additional CAKE or any of their other available pools (generally a new project or partner).
There is no risk of losing assets in Syrup Pools, and there is an auto-compounding pool for CAKE so that you do not have to harvest and stake regularly.
DEX servers are often distributed throughout the world. This differs from centralized exchanges, which often have more concentrated servers.
This dispersion of servers reduces the likelihood of server outage and makes DEXs essentially impervious to assaults.
This is because removing one of the servers has little to no effect on the whole network.
However, if you manage to gain access to a server at a centralized exchange, you may cause even greater damage.
Furthermore, when you conduct a deal on a DEX, the exchange never touches your assets.
As a result, even if a hacker can hack the exchange (despite what we stated above), the hacker cannot access your assets.
When you conduct a deal on a centralized exchange, you typically hold assets at that exchange.
Until you withdraw them to your wallet, that is. As a result, a centralized exchange may be hacked, and your cash kept at such an exchange can be stolen.
This is not the case with decentralized exchanges such as PancakeSwap.
PancakeSwap does not accept fiat currency deposits. Therefore you must acquire cryptocurrency through an entry-level exchange (an exchange that allows you to swap fiat currencies like USD and GBP with cryptocurrencies).
To trade on PancakeSwap, link your digital wallet, a simple operation (scan a QR code or add PanckeSwap’s network).
The PancakeSwap website has a set of guidelines for PC, iPhone, and Android that will enable you to link wallets like MetaMask to the exchange or build a new one.
Once you have crypto in your digital wallet, use Binance, Binance Bridge, or SafePal to convert it to the BEP-20 token, as advised by PancakeSwap.
You do not need to register for an account to trade; you can do so without doing so.
PancakeSwap does not offer formal customer assistance that you may contact.
On the PancakeSwap website, there is a troubleshooting page that includes a list of frequent issues, such as “price impact is too large” or “PancakeSwap router has expired,” as well as solutions and explanations for why the errors happened.
Suppose you have any queries or concerns about a mistake. In that case, you may seek assistance and support online by visiting financial news sites or contacting PancakeSwap’s official social media channels on Reddit, Twitter, Medium, Instagram, or Telegram.
You may also obtain assistance from the community on any of the above-mentioned social media platforms, 4Chan, Quora, Discord channels, or by viewing training videos on YouTube.
These will be beneficial for additional difficulties, such as “no provider was discovered” or “approving is stuck and not working,” for which there are no solutions on the official support sites.
The gamification of the PancakeSwap ecosystem has increased the number of ways for users to earn prizes.
One of them is non-fungible tokens (NFTs), which may be exchanged for CAKE or held in a digital wallet.
NFTs may be gained by participating in team trading games in which users join one of three teams that compete to see who has the highest trading volume over a set period.
You can also obtain NFTs during PancakeSwap airdrop events, such as the “Bullish” Lunar New Year NFT, given to the first 8,888 users who created accounts.
What differentiates PancakeSwap from others?
Here are the feature of PancakeSwap that differentiates it from others:
- It offers BEP-20 token swapping
- There is a feature farming through which you can farm your own native token called CAKE
- AMM model is used in it.
- PancakeSwap also allows lottery tickets using CAKE tokens
- You can trade and swap crypto tokens
- You will get provided with liquidity
- You get stake funds in return for BND
- You can connect your wallet with PancakeSwap
Our experience with PancakeSwap
PancakeSwap is simply great. My experience using this trading platform has been simply amazing because it offers a quite welcoming interface and all the services that made me understand the world of crypto-trading. I would recommend this app 100%.
PancakeSwap Exchange Comparison
Lets’ compare PancakeSwap with similar services:
PancakeSwap vs. Uniswap
PancakeSwap runs on Binance Smart Chain, which means lower transaction rates.
Whereas Uniswap runs on Ethereum BlockChain, which means the transaction rates on this trading platform would be much higher than PancakeSwap.
No. of listed tokens on PancakeSwap is around 200, and on Uniswap, it is about 1600. The transaction cost is quite on PancakeSwap, but it is increasing day by day.
PancakeSwap vs. Sushiswap
The governance token on PancakeSwap is Cake, and the governance token on sushiswap is Sushi.
PancakeSwap comes with features of NFT and lottery, but there are no such features available on sushiswap.
The transaction fee on PancakeSwap is 0.2%, and on sushiswap, it is 0.3%.
PancakeSwap vs. Metamask
Metamask is a special wallet that would allow traders to make transactions while using the Ethereum chain without any complete connection.
Whereas PancakeSwap is an online trading platform. It runs on BSC while using AMM money pools.
PancakeSwap is a well-designed DEX that provides several ways to make wealth through tokens, farms, and pools.
It is a trustworthy and somewhat safe exchange for individuals hoping to profit from the unpredictable cryptocurrency market, having been audited by CertiK.
While there is no customer service on the PancakeSwap website, there are various social media avenues via which you may reach out to the team or community for assistance.
Remember to pay any taxes you may owe on your profits in your home country.
Internet businesses, such as Koinly in the United Kingdom, may assist you with this procedure.
What is ICO that Pancakeswap offers?
It is an Initial Coin Offering, which, unlike an IPO, does not imply that individuals who invest in the cryptocurrency would own a portion of the firm to which they donate cash.
Does Pancakeswap work with smart contracts?
Yes, PancakeSwap uses smart contracts to control token staking, trading, and swapping on the exchange.