Today we will talk about: PancakeSwap (CAKE)!
OVERVIEW
So, get comfortable and get ready to enjoy a delicious and sweet breakfast!
Let's start by talking about what PancakeSwap is.
PancakeSwap is a new decentralized exchange (DEX) that’s been created on the Binance Smart Chain (BSC). The automated market maker (AMM) offers users several innovative ways to create income streams from their cryptocurrencies. Users can swap BEP-20 tokens on PancakeSwap quickly and safely.
PancakeSwap works like Uniswap because of the many similarities between the two transactions.
I’ve already talked about Uniswap in two articles of the “Token Review”. If you missed this article, you can recover it here:
The exchange is the largest decentralized application on the Binance Smart Chain. Many people think that PancakeSwap is futuristic and can provide many opportunities. The anonymous team that developed PancakeSwap's AMM Platform loves simplicity, straightforwardness and lots of facts topped with few words but lots of images of syrupy pancakes and gluttonous rabbits.
The spirit of CAKE, a young pilot platform launched at the end of September and developed on Binance Smart Chain in the development project funded by CZ Zhao, as the standard bearer of a DeFi new wave, is encapsulated in the formula: gamification + speed + low fees + 3-digit APY - continuous movement.
In the AMM a user loans their digital assets to liquidity pools and in return they receive liquidity tokens that they can then stake to earn more digital assets.
Below an example of possible yield from the PancakeSwap site:
Cake Token
The tokenomics adopted on the platform that has reached the top of the DeFi rankings for BSC and aims to surpass in time projects such as Uniswap and Sushiswap, allows a kind of miraculous effect of "balance over chaos", represented by the token "CAKE" that has become almost a cult of food farming in recent months. Without a hard cap, CAKE has a potentially infinite supply, but all the game systems proposed within the platform contribute to the "burning" mechanism and rebalance the emissions of 40 CAKE every 3 seconds by redistributing them in the farms, in the pools for simple staking, or in the lottery or even in the Initial Farm Offering.
And it is only thanks to this complex system and the lack of initial hard-cap that CAKE can guarantee three-figure APRs that, combined with compounding (reinvestment of the product) can quickly achieve remarkable results for those seeking maximum yield from a stake.
Once you understand the situation of each area of the website, it is not difficult to use PancakeSwap. When you visit the website for the first time, it may be difficult to understand what is going on, but this is because many features remain locked until you connect to the wallet and unlock it. Once the problem is resolved, you will see a lot of additional information that was lost before you connected the unlocked wallet to the website. You will see all the different returns provided by various farms and mining pools, and you will have the opportunity to increase liquidity and stake your tokens.
DEEPENING
The exchange is the largest decentralized application on the Binance Smart Chain. Many people think that PancakeSwap is futuristic and can provide many opportunities. The anonymous team that developed PancakeSwap's AMM Platform loves simplicity, straightforwardness and lots of facts topped with few words but lots of images of syrupy pancakes and gluttonous rabbits.
Now we're going to talk primarily about 3 things:
- PancakeSwap goals.
- The benefits.
- How to stake.
So, let's start the day with a nice maple syrup pancake breakfast (my favorite) and start learning more about this coin!
PancakeSwap Goals
The “To Do List” contains several goals that the team has achieved and many interesting developments that combine the NFT world with lending, decentralized exchange-swap development, user interface customization and other top secret ideas.
“Don’t call it a roadmap” says their website. “OK so it's not actually a roadmap: it's a to-do list, in no particular order, with no particular timeline. This is how we work: as fast as we can, on the things we can. Pivoting is a way of life.”
PancakeSwap Benefits
One of the benefits of decentralized transactions is that it eliminates the challenges the crypto community faces when completing transactions. Most of the problems are on the Ethereum network, but using Binance Smart Chain makes it easier to simplify operations and provide users with a cost-effective platform. This is why blockchain has won the hearts of many users and is therefore competing with more traditional exchanges.
Let’s check some benefits:
- Access to new tokens: PancakeSwap exchange offers users the opportunity to select the tokens they want to swap.
- Blockchain Interconnectivity: PancakeSwap facilitates blockchain interconnectivity whereby one blockchain can connect to another blockchain by using some features from each other. For instance, PancakeSwap developer designed the network to integrate many wallets used by investors.
- Faster transactions: Since the network is built on the Binance Smart Chain, the transaction speed is faster and completed within five seconds. At this speed, investors will definitely get more profits.
- Cheaper transactions: PancakeSwap's transaction fees are lower than other exchanges. Since the network does not use GAS prices to complete transactions, users can trade at lower fees than SushiSwap and Uniswap.
- Ease of usage: PancakeSwap's easy-to-use interface is no longer news. Many users are ecstatic about it because its interface is as simple as other respected DEX projects in the industry. Users do not need to have experience before using the platform.
- Secure and private: Anyone who wants to conduct private transactions can use the exchange because KYC/AML registration is not required. All it needs is for users to link to supported wallets and start trading. This is very useful for privacy-savvy users who do not want to be harmed by cybercriminals. In addition, the exchange is safe because it will not hold users' assets on its platform.
Stake some CAKE
If you've been following me for a long time, you'll already know that I'm a lover of staking. I have already done several articles about it that you can find in my profile. If instead you like more the video format, I leave you some links to some of my videos on YouTube where I talk about staking.
TRX Staking:
ALGO Staking:
In order to stake some CAKE tokens, you first need to purchase some CAKE tokens and some BNB and transfer them to a wallet supported by PancakeSwap. BNB can be transferred to your BEP-20 BSC address to pay for your transaction fees.
To start staking CAKE, you first need to connect your wallet to PancakeSwap. When you are done, you can go to the "Pools" tab on the left side of the PancakeSwap site.
This will provide you with a free pool where you can stake CAKE and earn more CAKE or other BEP-20 tokens.
PancakeSwap is a project worth using for yield farming, and worth watching to see what developments are made in the coming months and years.
Next week I’ll introduce you a new cryptocurrency!
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