PancakeSwap is a decentralized exchange, AMM & yield farm on Binance Smart Chain.
- What is PancakeSwap?
Familiar with Uniswap or SushiSwap? Then you’ll have no issue grasping PancakeSwap – they are quite similar in their core design.
PancakeSwap uses an automated market maker (AMM) model. That means that while you can trade digital assets on the platform, there isn’t an order book where you’re matched with someone else. Instead, you trade against a liquidity pool.
Those pools are filled with other users’ funds. They deposit them into the pool, receiving liquidity provider (or LP) tokens in return. They can use those tokens to reclaim their share, plus a portion of the trading fees.
So, in short, you can trade BEP-20 tokens, or add liquidity and earn rewards.
But wait, there’s more! PancakeSwap also allows you to farm its governance token – CAKE.
- How was PancakeSwap Launched?
PancakeSwap was launched through a yield farming distribution where early contributors of liquidity to its platform were rewarded in CAKE tokens. Cake tokens are still being minted and rewarded 40 CAKE per block to various Pools as rewards. There is currently no maximum supply of CAKE.
The platform is built on Binance Smart Chain and is significant due to its extremely cheap fees compared to DEXs like UniSwap built on Ethereum.
- Who is the team behind PancakeSwap?
PancakeSwap is a Binance Smart Chain-based DEX launched by anonymous devs with a penchant for breakfast foods and rabbits.