MarketCrypto Market

PancakeSwap (CAKE) Things You Need To Know Before Investing

What Is PancakeSwap (CAKE)?

PancakeSwap is an automated market maker (AMM) — decentralized finance (DeFi) application that allows users to exchange tokens, providing liquidity via farming and earning fees.

To learn more about this project, check out our deep dive into CAKE.

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. CAKE also allows users to farm additional tokens such as CAKE and SYRUP. Users can deposit LP tokens on the farm and get rewarded with CAKE.

CAKE 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 others projects.

Who Are the Founders of PancakeSwap?

PancakeSwap is a Binance Smart Chain-based decentralized exchange (DEX) launched by anonymous developers with an apparent passion for pancakes.

What Makes PancakeSwap Unique?

CAKE uses an automated market maker model, meaning that there are no order books, and liquidity pools are used instead. A user can earn income by becoming a liquidity provider; 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 CAKE token is a BEP20 token originally launched on Binance Smart Chain. The primary 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 a 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.

How Many PancakeSwap (CAKE) Coins Are There in Circulation?

As of March 2021, (CAKE) has a circulating supply of 125,984,870 CAKE coins, and no maximum supply data is available.

How Is the PancakeSwap Network Secured?

CAKE can be securely stored on supported wallets connected to the Binance Smart Chain. These include MetaMask, TrustWallet, TokenPocket and WalletConnect.

Where Can You Buy PancakeSwap (CAKE)?

PancakeSwap (CAKE) can be bought and sold on the following exchanges:

  • Binance
  • VCC Exchange
  • BKEX
  • KuCoin
  • MXC.COM

Also Read: Internet Computer (ICP) Things You Need To Know Before Investing

Related Articles

Back to top button