What is PancakeSwap?
PancakeSwap is an automated market maker (AMM) — decentralized finance (DeFi) application that allows users to exchange tokens, providing liquidity via farming and earning fees in return.
It launched in September 2020 and is a decentralized exchange for swapping BEP20 tokens on Binance Smart Chain. PancakeSwap uses an automated market maker model where users trade against a liquidity pool. These pools are filled by users who deposit their funds into the pool and receive liquidity provider (LP) tokens in return.
These tokens can later be used to reclaim their share of the pool and a portion of the trading fees. These LP tokens are known as FLIP. PancakeSwap also allows users to farm additional tokens such as CAKE and SYRUP. On the farm, users can deposit LP tokens and get rewarded with CAKE
PancakeSwap allows users to trade BEP20 tokens, provide liquidity to the exchange and earn fees, stake LP tokens to earn CAKE, stake CAKE to earn more CAKE and stake CAKE to earn tokens of other projects.
Who founded PancakeSwap?
PancakeSwap is a Binance Smart Chain-based decentralized exchange (DEX
) that anonymous developers launched with an apparent passion for pancakes.
It launched in September 2020 and is a decentralized exchange for swapping BEP20 tokens on Binance Smart Chain
How does PancakeSwap works?
PancakeSwap uses an automated market maker model, meaning that no order books and liquidity pools are used. A user can earn income by becoming a liquidity provide; by adding their tokens to the liquidity pool, they can farm LP tokens and stake their CAKE to earn rewards. They can also try their luck with the lotteries and non-fungible tokens.
The PancakeSwap token CAKE is a BEP20 token that originally launched on Binance Smart Chain. The main function of CAKE is to incentivize the liquidity provision to the PancakeSwap platform.
Users can stake their tokens to earn rewards, which is done by depositing Liquidity Provider tokens and locking them up. This is known as farming
and is rewarded by the system with CAKE tokens. The tokens can be un-staked with zero holding time. CAKE allows users to invest and increase returns in the future but comes with risks.
CAKE can be used to enter a lottery on PancakeSwap. Each lottery session takes 6 hours. A single ticket costs 10 CAKE and comes with a random combination of four numbers between 1 and 14, for example, 8-6-4-13. To win the jackpot, which equals 50% of the entire lottery pool, the numbers in your ticket need to match all four of the numbers in the winning ticket.
Can I earn money with PancakeSwap?
Yes, you can earn money by trading PancakeSwap (CAKE). Buy low, sell high. PancakeSwap can be used to trade against other cryptocurrencies. Always trade responsibly. Often the price is affected by CAKE news. Buy CAKE at Coinmerce