What is PancakeSwap Finance? An Intro to Famous BSC-Based DEX
PancakeSwap Finance is a decentralized exchange [DEX] built on binance smart chain with the main purpose of allowing cryptocurrency investor to swap their favor asset easily and securely by providing some of the token most use exchange not listing. Pancake swap become popular nowadays among cryptocurrency investors competing with well know Dex like uniswap or sushi swap.
PancakeSwap for Beter understanding is automated exchange or market maker called [MMA] that allows user or cryptocurrency investor to swap BEP 20 tokens by providing liquidity via farming and earning fees in return.
PancakeSwap was launched in September of 2020 by a group of anonymous developers, user trade against a liquidity pool and without maintaining orderbooks,PancakeSwap has been audit but now PancakeSwap belong to binance smart chain based decentralized exchange call [DEX]
What Make PancakeSwap Unique?
First of all, PancakeSwap is binance smart chain based decentralized exchange [DEX} with automated market maker [AMM]model for swapping Binance smart chain evolution proposal [BEP20] by providing liquidity to PancakeSwap pools, staking and farming.
Cake: is a PancakeSwap token BEP20 that was lunched on binance smart chain with the main purpose of provide or incentivize the liquidity provision to the exchange, PancakeSwap platform.
Cake token can be used to enter lottery,cryptocurency investors can win NFT that can be traded
PancakeSwap Exchange
PancakeSwap is decentralized exchanges that operate or use automated market maker [AMM] to helps cryptocurrency investor to trade tokens easily by providing liquidity to PancakeSwap pools simply by connecting a supported wallet like trust wallet or meta mask wallet.
PancakeSwap exchange allows investors to swap both BEP20 [Binance smart chain evolution proposal]and ERC20[Ethereum request for comment] token, whenever cryptocurrency investor initiate token swap, he or she pay 0.25% for fee, in that 0.25% fee pay by the investor 0.17% of it will automatically returned to liquidity pool in the form of fee for liquidity providers,0.3% will be sent automatically to PancakeSwap treasury and 0.5% to cake buyback and burn. this is how PancakeSwap exchange works anytime investors swap token.
Yield Farming of PancakeSwap
Yield farming it’s a process that allow Cryptocurrency investors to earn cake token while staking their LP tokens supporting PancakeSwap exchange on farms, most of the time investors getting rewards and re-invest them in syrup pools in order to play lottery.
Syrup Pools
This is the easiest way cryptocurrency investors can earn free tokens on PancakeSwap exchange by staking cake to earn more cake tokens.
According to our research, there are 2 types of Syrup pools :
- Auto Cake pools
- Manual Cake Pools
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