However, the distinct thing about it is that its foundation is Binance Smart Chain, a massive competitor of Ethereum. Most important of all, one should also note the fact that the Binance Smart Chain blockchain network serves as the foundation for Binance. This pool consists of funds deposited by investors, which are then turned into smart contracts to offer liquidity. For buyers, this means they no longer need to wait to be matched with a seller but can instead deposit their current cryptocurrency into the pool and withdraw the crypto they want. The majority of DEXs are built on the Ethereum network, which is known for slower transaction times and higher fees. This can make trading cryptocurrency a little more expensive and a lot more stressful.
PancakeSwap Price Prediction and Future Outlook
The prize pool for each session depends on the number of participants. In the case of PancakeSwap’s prediction, users can predict whether BNB or CAKE prices will rise or fall. Users can enter “UP” positions if they believe prices will rise or “DOWN” positions for the contrary. The PancakeSwap lottery is exactly what it sounds like — a traditional lottery system infused with the perks of cryptocurrency and DeFi. CAKE’s circulating supply is controlled by deflationary mechanisms, which aim to make the token deflationary, by burning more CAKE than the amount that is emitted. Hence, developers have a built-in burn mechanism for PancakeSwap products.
- This presents a drawback to users or developers who prefer fully-decentralized applications.
- By introducing a fixed token supply, it will be easier for CAKE to go higher in value.
- Once you’ve sent BNB to Trust Wallet, you’ll be able to swap it for another token on PancakeSwap.
- It is also cheaper to deposit assets for farming on PancakeSwap versus SushiSwap.
NFTs are also available on PancakeSwap
In April 2021, Binance revealed that the platform had executed some 4.9 million transactions in a single day, or three times the amount that Ethereum has ever managed in a day. The first step is to purchase some Binance Coin (BNB) from Binance.US and transfer it to your wallet. Then you’ll need to convert it to Binance Smart Chain to use it at PancakeSwap. You can do that within Trust Wallet by pressing the “More” button, tapping “Swap to Smart Chain,” and paying a small transaction fee to convert your coins. You will need your own crypto wallet to use PancakeSwap, as the DEX does not support fiat currency.
How Does PancakeSwap Compare To Other Decentralized Exchanges?
The decision about which DEX to use will ultimately depend on your personal needs and the one that you are most comfortable using. As we’ve already mentioned, learning how to use PancakeSwap and using CAKE tokens go hand-in-hand. As of Mar. 2022, CAKE token trades at around $5.40, the total circulating supply is 276.2 million CAKE and the market capitalization stands at around $1.4 billion. CAKE tokens reached its all-time high on Apr 30, 2021, when it peaked at $44.18. PancakeSwap is a decentralized exchange that allows you to swap BEP-20 tokens. As in most decentralized exchanges, users must first take a specified amount of CAKE to get voting rights.
What Is the CAKE Token And How Can You Farm It?
Similar to Uniswap and SushiSwap, PancakeSwap makes use of the AMM exchange model which relies on liquidity pools to facilitate trades. All of PancakeSwap’s functions are shown on the left side of the screen in your web browser. To swap tokens, go to Trade and select Exchange, and then choose which token in your connected wallet you want to trade, for which supported token on the DEX. You will need to confirm the transaction within your wallet to execute it. PancakeSwap offers game-like experiences, such as wagering on whether the price of Binance Coin (BNB) will rise or fall within a limited window of time.
Once you have an equal portion of CAKE and BNB, you can begin contributing liquidity. Make sure you have enough BNB for network fees, and then head over to the CAKE-BNB farm. Add equal amounts of CAKE and BNB, and click approve and then supply. One of the most discussed features of PancakeSwap is its Initial Farm Offerings, or IFOs.
It has a total supply of 750,000,000 CAKE with 148,603,636 tokens in supply and is ranked the 69th largest cryptocurrency on the planet with a market cap of $481,653,827. Similar to staking, users can simply access the Farms tab and select a liquidity pool based on their specific tokens. Yield farmers can earn anywhere from 2% to 137% APY on their investment.
Instead, users trade directly against a liquidity pool (more on this in our next heading). As a BNB-native protocol, PancakeSwap focuses on BEP-20 tokens — the token standard of the BNB chain. There are also the features of auto-compounding and the much-discussed Syrup pools. The latter is what PancakeSwap calls the simplest way to earn free tokens on the exchange. All you have to do is stake CAKE tokens, and you get free tokens in return.
The liquidity mining program works at 40 CAKE per block, which amounts to 501,200 CAKE per day. The image above, straight from the exchange, does a good job of explaining the role and presence of CAKE in the ecosystem. The PancakeSwap lottery is another feature, which runs through two draws every day, which can be participated in by purchasing tickets. If someone matches all six numbers on the ticket, they earn 40% of the prize pool allocation. For some measure of the funds involved, the total size of the prize pool has exceeded $1.1 million in the past.
The store is home to BNB Chain-based NFTs, including Pancake Squad, Gamester Apes, and BornBadBoys. Although not as popular as NFT stores such as OpenSea, these collections have a value of over $1 million, with many NFTs selling for over $1000 each. Now you can actually start farming by depositing your LP tokens in a farm to receive CAKE tokens. You’ll be directed to the Liquidity page, where you can click Add Liquidity and choose the token pair you want to deposit.
Powered by innovative AI technology and a user-centric design philosophy, Aperture offers advanced solutions to streamline LP management and maximize returns for DeFi participants. Investors can be liquidity providers, CAKE farmers, or NFT traders. Or, they can go full degen and play in the projects lottery feature. In terms of trading volume, PancakeSwap ranks third double entry accounting accountingtools in the world with an average volume of $944,910,070. This unique feature not available on any other decentralized exchange showcases PancakeSwap’s fun and friendly approach to trading. While PancakeSwap is nowhere near Uniswap in terms of market share, PancakeSwap’s outstanding features were designed to attract new users and incentivize more trading activity.
PancakeSwap was launched in Sep. 2020, and the platform is regularly audited and verified by security companies such as Certik and SlowMist. Note that ERC-20 tokens can be converted to BEP-20 tokens through a Binance bridge. If you do not have a Binance account, you can use any of the bridges listed here to wrap your tokens into the BEP-20 standard. To find the contract address of the token that you want to buy, you need to visit it on bscscan.com or coinmarketcap.com. After you’ve tapped on “WalletConnect”, you’ll see a list of wallets that you can connect to. Once you’ve created a new wallet on Trust Wallet, you’ll see a list of cryptocurrencies.
PancakeSwap is part of the rising wave of DeFi services that enable crypto traders to conduct transactions with trade tokens without a middleman taking a significant cut of the funds. It is one of the largest such DEXs on the Binance Smart Chain, although there are DEXs on Ethereum (such as Uniswap) with significantly higher average trading volume. Users can https://cryptolisting.org/ launch IFOs on the exchange by committing LP tokens from supported pools to enable access to sale of newly launched tokens. PancakeSwap exchange also offers the feature of Teams and Profiles, which can help you show off your statistics through creation of a public profile. To use this feature, navigate to the “Limit Orders” section and select PancakeSwap.
PancakeSwap’s pottery feature combines locked CAKE staking with lottery elements, offering a chance for users to win bigger yields on their CAKE deposit. The biggest upside is that even if you lose, you get back all your deposited CAKE tokens. Trading competition is another one of PancakeSwap’s “win” features.
