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PancakeSwap Cryptocurrency

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PancakeSwap (Symbol: CAKE) is an automated market maker and Decentralized Exchange (DEX) that allows tokens to be exchanged on the Binance Smart Chain. Users can earn $CAKE tokens by providing liquidity to the platform, staking, and also getting a chance to win some $CAKE tokens through a lottery.

PancakeSwap launched in September 2020. The project has over $1,000,000,000 in Total Value Locked (TVL).

On February 17, 2021, PancakeSwap became the first billion-dollar project on the Binance Smart Chain.

CAKE features

  • CAKE is the Governance Token
  • Yield Farming
  • Users trade against a Liquidity pool

PancakeSwap Protocol

Products

Exchange

Token swaps on PancakeSwap allow users to trade one BEP-20 token for another via automated liquidity pools. The liquidity provided to the exchange comes from Liquidity Providers (LPs) who stake their tokens in “Pools. In exchange, they get FLIP (PancakeSwap Liquidity Provider) tokens, which can also be staked to earn CAKE tokens in the “farm”.

When users make a token swap (trade) on the exchange you will pay a 0.2% trading fee, which is broken down as follows:

  • 0.17% – Returned to liquidity pools in the form of a fee reward for liquidity providers.
  • 0.03% – Sent to the PancakeSwap Treasury

PancakeSwap Pools

PancakeSwap pools allow users to provide liquidity by adding their tokens to liquidity pools or “LPs”.

When users add their token to a liquidity pool (LP), they receive FLIP tokens (PancakeSwap’s version of liquidity provider tokens).

As an example, if a user deposited $CAKE and $BNB into a liquidity pool, they would receive CAKE-BNB FLIP tokens. The number of FLIP tokens they receive represents their portion of the CAKE-BNB liquidity pool. They can also redeem their funds at any time by removing their liquidity.

Related:  EOS Token Cryptocurrency

Providing liquidity is not without risk, as users may be exposed to impermanent loss. Liquidity providers will also be given a reward in the form of trading fees. Whenever someone trades PancakeSwap, the trader pays a 0.2% fee, of which 0.17% is added to the liquidity pool of the swap pair they traded on.

PancakeSwap Tokenomics

$CAKE

Emission rate

    • Reward per block – 40 CAKE
    • Daily emission (Based on 30k blocks per day) – 1,200,000 CAKE per day

Distribution

  • Farmers – 75% of the rewards per block (30 CAKE)
  • SYRUP holders – 25% of the rewards per block (10 CAKE)
  • Farmers daily – 900,000 CAKE (based on 30k blocks per day)
  • SYRUP holders daily – 300,000 CAKE (based on 30k blocks per day)

How to Buy PancakeSwap

How do I buy PancakeSwap Token?

While some cryptocurrencies, including bitcoin, are available for purchase with U.S. dollars, others require that you pay with bitcoins or another cryptocurrency.

To buy cryptocurrencies, you’ll need a “wallet,” an online app that can hold your currency. Generally, you create an account on an exchange, and then you can transfer real money to buy cryptocurrencies such as bitcoin or Ethereum. Here’s more on how to invest in bitcoin.

Coinbase is one popular cryptocurrency trading exchange where you can create both a wallet and buy and sell bitcoin and other cryptocurrencies. Also, a growing number of online brokers offer cryptocurrencies, such as eToro, Webull, and Sofi Active Investing. Robinhood offers free cryptocurrency trades (Crypto.com is available in most, but not all, U.S. states).

The Author

Oladotun Olayemi

Dotun is a financial enthusiast who specializes in first-in-class financial content, including crypto, blockchain, market, and business, to educate and inform readers.