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What Is Pancakeswap CAKE? Features, Tokenomics and Price Prediction 2022 Update

what is pancakeswap

The next important highlight about PancakeSwap token would refer to farming opportunities with it. You can deposit crypto assets in the liquidity pools on the DEX and become a liquidity provider with LP tokens. Now, you could deposit the LP tokens and invest them in a process in return for rewards with native tokens, i.e., PancakeSwap CAKE. Like many other DEXs, PancakeSwap is built on an automated market maker (AMM) system, which relies on user-fueled liquidity pools to enable crypto trades. That allows you to make the swap you want, and users who keep their coins in the pool earn rewards all the while.

What Is Pancakeswap (CAKE)? Features, Tokenomics and Price Prediction (2022 Update)

The PancakeSwap exchange follows the AMM system just like many other DeFi protocols such as Uniswap. It helps users in swapping crypto assets by leveraging user-generated liquidity pools. You don’t have to depend on any order book, where you have to should you buy a stock before or after it splits wait for matching orders. On the contrary, you would trade with the liquidity pool on the DEX. PancakeSwap’s “Win” features also make the protocol stand out in comparison to other decentralized exchanges, where users are limited to token swaps.

  1. We introduce people to the world of trading currencies, both fiat and crypto, through our non-drowsy educational content and tools.
  2. With this decentralized exchange, Binance is putting up formidable competition to the popular crypto networks such as Uniswap and Ethereum.
  3. CAKE has a circulating supply of just under 237 million tokens, with the distribution going 75% to farmers and 25% to SYRUP token holders.

How to add liquidity on PancakeSwap?

This liquidity can be removed at any time, and will be disbursed in the individual tokens that were initially swapped for the LP tokens. As described above, token swaps take place via liquidity pools between token pairs. The final thought on PancakeSwap clearly impinges on the independence from Ethereum.

How Does PancakeSwap Work?

You can then use it to swap tokens, provide liquidity, participate in yield farming, and much more. To enable that specific token means to enable the DEX to access it, and you will have to confirm https://cryptolisting.org/ this action from your wallet. As with any blockchain action, this counts as a transaction (will incur a network gas fee) and you will need to confirm the transaction from your wallet.

You’ll need to deposit both tokens based on the ratio provided on the site. It is used in several products within the ecosystem, and users are rewarded in CAKE for liquidity provision. In a comparatively short span of time, it has risen to good volumes, and the new financial services are bound to support further growth. If investors are looking for an exchange that provides multiple features to earn, then PancakeSwap is a solid choice.

what is pancakeswap

So, you’re going to have to exchange some of your assets for CAKE on PancakeSwap. PancakeSwap and other decentralized exchanges are largely similar in their overall objective and features. However, they differ when it comes to the technicalities, and that is what we will examine here. We’ll cover what PancakeSwap is, its history, the CAKE token, the several features it possesses, and a comparison with competitors. To use PancakeSwap, you will need to connect a supported wallet to the DApp, such as TrustWallet or MetaMask.

Please note that all set triggers will automatically expire after 90 days. For example – zapping into an LP via Aperture on PancakeSwap will generate 3X points compared to the same action on Uniswap. As well as the Pancake Swap Exchange, users can invest in non-fungible tokens (NFTs) using PancakeSwap’s new NFT store.

The market had attracted so many investors to the Ethereum network that it could hardly keep up. PancakeSwap has become the biggest DEX on the BNB Chain and one of the biggest decentralized exchanges overall by leveraging several strengths. As we dig deeper, there are many differences between the three DEXs. Different reasons could explain why different traders choose one DEX over the other. You could choose to use liquidity provider platforms, pay a fee, or have tokens available.

Toggle to the Auto-Compound button and turn it on, then enter the minimum fee amount and maximum gas amount in dollars or as a percentage of your position. Additionally, you can choose a “time buffer” for price or ratio-based triggers to ensure they only activate after a set period. For example, if you want to rebalance when BNB reaches $600 after the next 24 hours, you can set a 24-hour time buffer.

Each trader pays a fee of 0.25%, of which 0.17% is added to the liquidity pool and shared amongst providers. The greater the liquidity you offer, the more rewards you can earn. PanakeSwap is the biggest AMM DEX on Binance’s BNB chain, and the third largest decentralized exchange in the crypto space, with a total market share of 5.4%. For one, PancakeSwap has two built-in yield farming tools that allow users to stake liquidity provider (LP) tokens in exchange for more CAKE tokens. Syrup Pools is the protocol’s second yield farming tool, where users can stake their CAKE to earn more CAKE or other BEP-20 tokens.

The INTENTional campaign allows participants to qualify for a total airdrop pool of 42M $APTR, equal to 4.2% of the total supply. It hosts by far the largest number of markets with over 3798 options to choose from. Other competitors such as Curve Finance and dYdX are significantly smaller with 59 and 10 markets. You’ll also be able to look at the annual percentage rate (APR) offered.

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