What is PancakeSwap?
Launched on September 20, 2020, PancakeSwap is an exciting new DeFi app that allows users to exchange tokens, provide liquidity and earn fees, and engage in farming. But it’s not just any random DeFi app – PancakeSwap is built on Binance Smart Chain as well as the Top 1 DAPP by volume of all time on this blockchain! Considering its position within this network ecosystem- right next door to Uniswap – one can see why many are saying that it will be “the” standard for decentralized exchanges.
PancakeSwap is a cryptocurrency exchange that uses the CAKE token and SYRUP pools. They use BEP-20 tokens on BSC, which makes it cheaper to trade than DeFi projects built off of Ethereum.
What can you do on PancakeSwap?
PancakeSwap can be used to trade BEP20 tokens and earn cryptocurrencies through CAKE staking and providing liquidity.
You can do the following on PancakeSwap:
- Trade BEP20 tokens
- Provide liquidity to the exchange and earn fees
- Stake your LP (liquidity provider) tokens to earn CAKE token
- Stake CAKE to earn more CAKE
- Stake CAKE to earn tokens of other projects
PancakeSwap Fees
PancakeSwap is a decentralized exchange where traders can anonymously trade their liquidity for tokenized shares of the profits. Those who contribute to this effort get LP tokens and receive part of trading fees from every successful transaction made on PancakeSwap. The trading fee on PancakeSwap is 0.25%. 0.17% goes to liquidity providers, 0.03% goes to PancakeSwap Treasury which is burnt, and the rest, 0.05%, is used for CAKE buyback and burn. So, if you trade BEP20 tokens on PancakeSwap, you’ll pay a 0.25% trading fee.
How to buy PancakeSwap?
PancakeSwap is a blockchain-based ecosystem where people can swap pancakes for tokens and use those tokens to, well, make more pancakes. It’s also possible to stake your CAKEs on Pancakeswaps by sending them directly from Binance or one of the other exchanges that have agreed with our token trading agreement. But if you want “real” physical coins (or at least something tangible), there are some limited edition collector cups out right now.
You can also connect your wallet to PancakeSwap and buy CAKE tokens with your BEP20 tokens such as BNB, BUSD and BTC on the exchange. If you don’t have a Binance account yet, click this link or visit our guide on how to open a Binance account to open your Binance account with a 20% fee discount.
PancakeSwap Supported Wallets
PancakeSwap provides multiple ways to access your favorite cryptocurrencies. This wallet supports Trust Wallet, TokenPocket, and other popular wallets like MathWallet or MetaMask. These secure wallets can be used with Binance’s platform so that you are able to manage your assets in an easy way.
How to stake CAKE?
In order to stake some CAKE tokens you first need to buy some CAKE tokens along with BNB and transfer them both into a wallet that’s supported by PancakeSwap. The transaction fee for the BNB can be paid at market value, so no additional funds are required. To begin staking your token, just connect it up on the “Pools tab” of our service! That will present you with all available pools where you may earn more rewards or other popular cryptocurrencies in return – like ETH or BTC, but also USDT if desired.
Adding liquidity
If you’ve experienced using an AMM you know how this works. It’s not really difficult, but we know some people balk just because they aren’t familiar with the process. So, the first step to take when using PancakeSwap is to add liquidity to the exchange.
Find “Trade” in the left sidebar and click it to drop down the menu. Next click on “Liquidity” and then click “Add Liquidity”. Next you’ll select the token pair you’re interested in depositing to provide liquidity. You have to choose each side of the pair, and if it is a completely new pair the ratio of tokens you provide will set the price for the pool. It’s also important that before you begin the process of adding liquidity you understand the risks of impermanent loss.
Teams & Profiles
Just in case you don’t think that the exchange has been gamified enough you can also create a public profile and join teams in order to show off your personal stats and to compete for team achievements. Note that this feature is still in development, but when released there will be tasks available that will generate points for the teams involved.
Is PancakeSwap really safe?
PancakeSwap is an overall safe decentralized exchange to use. It has been audited by CertiK, which you can check out on this page. But even several audits done by reputable companies should not come to mean that the dapp is truly safe and there will be no issues. PancakeSwap and a few other dapps are great examples for that. For example, the SYRUP exploit happened after the audit has been done. So, you should use any dapps including PancakeSwap with caution and do not put your all eggs in one dapp in case something happens.
