What is PancakeSwap (CAKE)? How does it work and using it?

PancakeSwap (CAKE) is a decentralized exchange built on the Binance Smart Chain blockchain. Established in 2020, it quickly became one of the largest and most popular DEX platforms in the market, attracting a massive user base and generating significant value for DeFi.

To understand more about PancakeSwap (CAKE) and related project details, please follow the AZcoin article below!

What is PancakeSwap (CAKE)?

What is PancakeSwap (CAKE)?
What is PancakeSwap (CAKE)?

PancakeSwap (CAKE) is a decentralized exchange (DEX) running on the Binance Smart Chain (BSC) platform. It enables users to swap BEP-20 tokens directly without intermediaries, providing liquidity and participating in yield farming and staking activities to earn rewards.

Main features of PancakeSwap

PancakeSwap operates as an automated market maker, allowing users to engage in token exchange and earn profits through features such as:

  • Decentralized Exchange (DEX): PancakeSwap enables users to swap various tokens on the BSC without relying on intermediaries, reducing security risks and transaction costs.
  • Yield Farming: Users can deposit token pairs into liquidity pools to earn CAKE rewards. This provides a passive income opportunity for token holders.
  • Staking: PancakeSwap offers multiple staking pools (Syrup Pools), allowing users to lock their CAKE tokens to earn rewards in other tokens.
  • Lottery: Users can participate in lottery games for a chance to win CAKE-based prizes.
  • NFT Marketplace: PancakeSwap provides an NFT marketplace where users can buy, sell, and trade NFT items.
  • Initial Farm Offerings (IFOs): This is a decentralized fundraising method for new projects, allowing users to participate in new projects and receive tokens from these projects.

How does PancakeSwap work?

How does PancakeSwap work?
How does PancakeSwap work?

PancakeSwap operates on a smart automated market maker (AMM) system. This means transactions are executed through smart contracts, without the need for third-party intervention. This setup makes trading faster and more secure while reducing transaction costs.

Transactions on PancakeSwap are facilitated through trading pools where liquidity is provided by users. Users can provide liquidity by connecting their wallets to PancakeSwap or by creating LP tokens through pairing two types of tokens on the platform. When providing liquidity, users receive LP tokens in proportion to each token’s share in the pool.

Highlights of Pancakeswap

PancakeSwap stands out with several key features:

  • High Liquidity: Supported by BSC, PancakeSwap can handle thousands of transactions per second with very low transaction fees, making it an attractive choice for DeFi traders.
  • Unique Features: PancakeSwap offers various attractive and unique features such as farming, staking, and lottery, allowing users to earn profits from using the platform.
  • User-Friendly Interface: PancakeSwap’s simple and user-friendly interface attracts many new users to the DeFi market.
  • Low Transaction Fees: The platform charges only 0.2% fee per transaction, significantly lower than many other decentralized exchanges like Uniswap or Sushiswap.
  • Diverse Ecosystem: With multiple features and DeFi partnerships, PancakeSwap has built a comprehensive ecosystem, providing numerous opportunities for users.

Detailed information about CAKE Token

Detailed information about CAKE Token
Detailed information about CAKE Token

CAKE is the official token of PancakeSwap and is used for all activities on the platform. Created on the Binance Smart Chain blockchain, CAKE is a standard BEP-20 token.

Key Metrics CAKE Token

  • Token Name: PancakeSwap.
  • Ticker: CAKE.
  • Blockchain: Binance Smart Chain.
  • Token Standard: BEP-20.
  • Contract: 0x0e09fabb73bd3ade0a17ecc321fd13a19e81ce82
  • Token Type: Utility và Governance.
  • Total Supply: No max supply.
  • Circulating Supply: 178,932,954 CAKE.

CAKE Token Use Case

CAKE is used for the following activities on PancakeSwap:

  • As transaction fees for each trade on the platform.
  • To earn profits from farming and staking activities.
  • Used to purchase tickets for participation in lottery draws.
  • Buying, selling, and trading NFTs on the platform.

Where to buy and sell CAKE Token?

Where to buy and sell CAKE Token?
Where to buy and sell CAKE Token?

The CAKE token can currently be traded on several best crypto exchanges such as Binance, KuCoin, Gate.io, and Huobi. On Binance, you can trade CAKE against popular cryptocurrencies like Bitcoin (BTC), Ethereum (ETH) and Tether (USDT).

Which wallet stores CAKE Token in?

As a BEP-20 token, users can store CAKE in wallets that support this standard, such as Trust Wallet or MetaMask. Additionally, users can store CAKE in PancakeSwap’s own wallet.

PancakeSwap project investor & partner

Investor

PancakeSwap is currently one of three projects, alongside BakerySwap and BurgerSwap, receiving a $100 million funding grant from Binance Smart Chain. Additionally, PancakeSwap is supported through CertiK’s Smart Contract Audit program.

Partner

PancakeSwap has numerous partners, primarily projects within the Binance Smart Chain ecosystem. According to announcements on their Medium page, all projects with tokens in the Farming Pool are partners of PancakeSwap. Additionally, PancakeSwap actively supports projects launching their tokens through the Pancake IFO platform.

The end

Here is the detailed information about the PancakeSwap project that AZcoin just introduced to you. I hope through this article, you have a clearer understanding and can make informed decisions before investing in this project!

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