PancakeSwap Guide and Tutorial ($ CAKE)

PancakeSwap is one of the most popular yield farming projects on Binance Smart Chain. However, beyond the usual yield growing method, PancakeSwap offers multiple products that users can maximize to take advantage of their sifates. This makes PancakeSwap a strong competitor against similar projects in space like Uniswap.

Watch a video on PancakeSwap’s Yield Growing Strategies and, in particular, How to Avoid Impermanent Loss!

What is PancakeSwap?

PancakeSwap is a decentralized exchange (DEX) platform that makes it easy to trade BEP-20 tokens. It implements an Automated Market Maker (AMM) caral to provide liquidity in peer-to-peer trading within the protocol.

Through this caral, PancakeSwap combines the buy and sell orders of different users of the platform directly into a liquidity pool. supply of tokens in this pool is provided by user deposits in a process called ‘staking’.

When they bet tokens, PancakeSwap rewards them in return with a proportionate amount of their share of the platform’s trading fees, as well as liquidity provider (LP) tokens. LP token that bettors will receive as an incentive will be the same asset they supplied to the liquidity pool.

But basically, it works very similar to how Uniswap and SushiSwap work. Even its user interface looks almost the same. difference lies in the performance strategy that anyone can take advantage of on the platform. When users bet, they also earn CAKE tokens.

re are several liquidity pools that users can bet on. Here are some examples for them:

  • CAKE-BNB
  • BUSD-BNB
  • BETH-ETH
  • USDT-BUSD
  • USDC-BUSD
  • DAI-BUSD
  • LINK-BUSD
  • TWT-BNB

CAKE Token: What is it?

PancakeSwap ($ CAKE) token is the platform’s native token. Users are rewarded with CAKE tokens for staking their funds on the platform. y can then stake their CAKE tokens to win other types of tokens in special betting pools. CAKE token is primarily to participate in community governance where users can vote on decisions related to the direction or execution of PancakeSwap.

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PancakeSwap Guide: How do you start using PancakeSwap and earn CAKE tokens?

PancakeSwap is easy to use. First, you will have to visit their website at https://pancakeswap.finance/ and link your wallet there. You have the option to connect it to your MetaMask, Binance Chain Wallet, WalletConnect, and Trust Wallet, among others.

As mentioned, it is also compatible with MetaMask even if that wallet is based on Ethereum. This is because the platform is built on top of Binance Smart Chain (BSC), which supports interoperability between Ethereum-based wallets.

On the platform, there are options to exchange your tokens or provide liquidity in the ‘groups’ section. re is also an option to start “farming” if you look at other sections.

You can farm CAKE tokens on the platform. But before you can begin to do so, you must first provide liquidity to the PancakeSwap group to earn rewards in CAKE tokens. You can bet them back on the platform and get more in return. And again, users can also cultivate other tokens by participating in other liquidity pools.

Syrup Pools

Project owners can launch their tokens with the help of Syrup groups. Here, they can commit a portion of their own tokens and distribute them to CAKE holders. re will be two categories for projects supported by the Syrup group: Core and Community.

Top projects are those that have been vetted by the team behind PancakeSwap. Community projects are those that CAKE holders voted for in government decisions. Despite this, anyone can distribute their tokens to CAKES holders through the Syrup group. However, only the projects that get the community vote are listed in the platform interface.

PancakeSwap Syrup Group ( credit: PancakeSwap)

Transaction fees

DEXs that follow the AMM caral also charge commercial fees. Users who participate in liquidity pools receive their LP token rewards in addition to the trading fees accumulated on the platform.

PancakeSwap charges 0.2% commercial fees to users. In these fees, 0.17% is redistributed to liquidity providers and the other 0.03% is allocated for burning by the PancakeSwap Treasury.

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Since the platform is decentralized, participants can review this distribution schedule as needed.

CAKE lottery

re is also an option for users to join the CAKE lottery. You will have a 6 hour slot per lottery session and you can get a lottery ticket for 10 CAKEs. This ticket will generate a random four-digit combination of numbers between 1 and 14.

A winner’s takeout can go up to 50% of the entire lottery pool if their ticket numbers match the four winning lottery numbers. re are also rewards even if at least two of your numbers match in the same position as the winning ticket.

Non-Expendable Tokens (NFT) in PancakeSwap

PancakeSwap also offers the option to participate in the exchange of collectibles on the platform. re is a section for non-fungible tokens (NFTs) (called “Pancake Collectibles) represented by cute figures that users can exchange for CAKE. You can choose to keep these NFTs if you own some and exchange them at an earlier date.

Initial agricultural offerings (IFO)

PancakeSwap introduced Initial Farm Offerings (IFO) on the platform to help newly launched tokens open up opportunities for yield farming. To do this, users can assign their LP tokens to the available groups. Here, those who will release their tokens to the IFO first will be asked about the details of their project, such as the current development stage of their token, the use case, the distribution schedule, the smart contract audits, the expected valuation. and the purpose of fundraising.

Is PancakeSwap safe?

PancakeSwap is audited by CertiK, one of the most reputable smart contract auditors in this space. However, there are always risks involved in using these platforms, such as mistakes, that could result in the loss of funds.

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conclusion

Today, there are many yield agriculture projects in the space and it can be difficult to assess where to focus. And when selecting a platform to use, it is important to look beyond the promised APY. On several fronts, PancakeSwap appears to be a strong competitor to some of the highest-yielding growing protocols in the space today.

Since the platform is built on top of the Binance Smart Chain, it has an advantage because this means that its blockchain network is faster than others in the space, as it features around 3-5 seconds of block time with its Proof-of caral. -Stake. On top of that, there are other profit-generating opportunities with PancakeSwap. Beyond yield farming, users have the opportunity to participate in lotteries, collect NFTs, and launch fundraising rounds through IFO. se are features that many other popular yield farming projects don’t yet offer.

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