Rancakmedia.com – If you are interested in learning more about pancakeSwap, this article will explain what pancakeswap is and how it works this time. PancakeSwap is a decentralized exchange that allows users to trade cryptocurrencies and tokens without the need for a central clearinghouse.
The service is built on top of Binance Smart Chain (BSC), a blockchain platform powered by automated smart contracts and operated by cryptocurrency exchange Binance. Even though Binance is a centralized exchange, it does not own or run one PancakeSwaps, created by an anonymous developer.
What is PancakeSwap
PancakeSwap is an Automated Market Maker (AMM) that enables digital currency exchange on the Binance Smart Chain (BSC) network. This network is the main differentiator between PancakeSwap and Uniswap.
With this AMM approach, you as a user can trade digital currencies using a liquidity pool or user-generated liquidity. PancakeSwap provides Yield Farming DeFi to liquidity providers to build liquidity pools. This liquidity draw resulted in a total locked value of over one billion US dollars (TVL).
Additionally, PancakeSwap, which launched at BSC in September 2020, is part of a growing wave of DeFi services and is one of the main DEXs on the platform.
Indeed, PancakeSwap can be claimed to be more affordable and convenient to use than other decentralized exchanges such as Uniswap and Sushi. One explanation for this is that PancakeSwap is built on top of BSC, Binance's high-throughput blockchain built to compete with Ethereum.
CAKE, PancakeSwap's Original Token
PancakeSwap uses CAKE tokens. CAKE is a native token that serves as a governance token as well as a platform for farming and staking.
CAKE can be obtained by liquidity, staking or by buying it on the exchange. Tokens supplied to liquidity providers (LPs) can be freely traded on the open cryptocurrency asset market.
Additionally, PancakeSwap includes a second token called SYRUP which entitles 40% holders from CAKE emissions. SYRUP, on the other hand, is not traded as it is designed to facilitate the release of staking CAKE.
According to CoinMarketCap, the total number of CAKE tokens distributed on the crypto asset trading market as of November 2021 was 248,640,925.31 CAKE. In addition, CAKE coin is ranked 45th.
In addition, the current exchange rate for one CAKE currency to one IDR coin is IDR 254,110. While PancakeSwap charges 0.2 percent, 0.17 percent of the fee goes to the liquidity provider and 0.03 percent to the PancakeSwap treasury.
Also, you don't have to worry about CAKE, because PancakeSwap has 1.2 million Twitter followers. Also, this item can be trusted, as it now has 1,019,029 holders.
How PancakeSwap Works
The PancakeSwap DEX facilitates the exchange of tokens across token pairs via a liquidity pool. Liquidity providers (LPs) communicate with the pool and are compensated with LP tokens that reflect their share in the pool.
This token serves as a key for them to withdraw their share of the pool. Without the need for intermediaries, you can exchange one type of token for another.
While users who stake their tokens in the liquidity pool will get a percentage of the profits generated from their bets.