![]() ![]() For example, you can stake CAKE, PancakeSwap’s native token, and earn even more CAKE just by letting it sit there in the Syrup Pool over time. The DEX also lets you stake coins into so-called Syrup Pools that provide growing rewards. However, that’s just one part of the overall PancakeSwap experience. Users are able to exchange one type of token for another without an intermediary, while other users who stake their tokens in the liquidity pools earn a share of the rewards generated by transactions. How does PancakeSwap work?Īs described above, token swaps take place via liquidity pools between token pairs. PancakeSwap has flipped Uniswap on multiple occasions to become the most popular DEX based on trading volume, but hasn’t consistently maintained that title as of yet. It is one of the largest such DEXs on the Binance Smart Chain, although there are DEXs on Ethereum (such as Uniswap) with significantly higher average trading volume. ![]() PancakeSwap is part of the rising wave of DeFi services that enable crypto traders to conduct transactions with trade tokens without a middleman taking a significant cut of the funds. That allows you to make the swap you want, and users who keep their coins in the pool earn rewards all the while. Rather than dealing with an order book and finding someone else who wants to swap the tokens you have for the ones you want, users lock their tokens into a liquidity pool via smart contracts. Like many other DEXs, PancakeSwap is built on an automated market maker (AMM) system, which relies on user-fueled liquidity pools to enable crypto trades. PancakeSwap is used specifically for BEP-20 tokens running on Binance Smart Chain, although it’s possible to bring over tokens from other platforms via Binance Bridge and “wrap” them as a BEP-20 token for use on the DEX. The service looks and feels very similar to the popular Ethereum DEX, Uniswap. It is built on automated smart contracts deployed on Binance Smart Chain, the blockchain platform run by crypto exchange Binance.Įven though Binance operates a centralized exchange service, it does not control or operate PancakeSwap-it was built by anonymous developers. PancakeSwap is a decentralized exchange that allows you to trade cryptocurrencies and tokens without a centralized intermediary, keeping custody of your tokens all the while. Here’s what you need to know about PancakeSwap on the Binance Smart Chain, including a quick primer on how to get started. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |