What is Pancakeswap

0
359

Smart chain’s largest decentralized exchange pancakesswap is now valued at 50 billion dollars and most of its projects are based on the Ethereum network. As we already know binance competes against ethereum with its own smart contract ecosystem called the binance smart chain. For the purpose of capturing a portion of defi’s rising liquidity ethereum and binance smart chain, therefore, have the same goals. And blockchain infrastructure even the projects that they maintain function similarly so for a better understanding of how pancake swap works we can simply think of it. As the uniswap equivalent that reigns supreme Binance’s decentralized market but is it just another copy or can we call it an independent project.

pancakeswap finance

Pancakeswap is a decentralized exchange that offers standard defy opportunities token swapping yield farming and numerous forms of liquidity pools. But, that’s not everything pancake swap stands out by going above and beyond in terms of what decentralized exchanges traditionally offer. Their users have access to lottery’s digital collectibles in the form of non-fungible tokens trading tournaments and even launchpads for ambitious developer teams seeing their level of commitment to overhauling the defi experience we can say with certainty that the pancakeswap team was not lazy when creating their exchange not only do they offer cheaper and faster transactions.

Thanks to Binance’s smart contracts but they also feature diverse tools and products the dex brings practically everything that a centralized exchange does. So it isn’t really a surprise why pancakeswap is the third-largest exchange by volume in the defi sector and directly competes with uniswap. pancakeswap includes two essential cryptocurrencies cake and syrup. Both are based on the bep20 token standard. The token model revolves around using cake as a utility cryptocurrency. that enables users to participate in lotteries swap tokens and purchase nfts its second purpose is staking which distributes syrup as an NLP token in return syrup holders are rewarded by earning. 25of cake emissions as long as they owned the token on pancake swap users can yield farm and join various liquidity pools for cryptocurrencies hosted on the Binance smart chain. Most liquidity pairs are tied to bnb finance’s own utility token although investors lose access to ethereum’s vibrant defi market by using pancakeswap. They get their money’s worth by being able to deposit assets and trade at a much cheaper rate since Binance’s solution is slightly more centralized compared to its competition. The Bsc blockchain confirms transactions with minimal fees instead of discussing the same old features that appear on every other defi project.

We’ll talk about the new features that make pancakeswap stand out.

  • Pancakeswaps first exclusive feature is the lottery system makes holders can contribute to the lottery by depositing their tokens in a special liquidity pool that distributes rewards in a randomized manner. Each user chooses how many tickets he wishes to buy and if his numbers match the winning lottery ticket he receives a reward based on the amount of liquidity deposited by all participants. All lottery results are automatically drawn every 24 hours despite the fact that it is relatively difficult to hit the jackpot pancake swap’s lottery feature is surprisingly popular among the community.
  • Next is binance bridge by being located in a separate ecosystem pancake swap is incredibly disconnected from a large portion of defi nevertheless users have the opportunity to bridge the gap via binance’s native cross-chain tool the binance bridge. if you wish to use ethereum tokens on pancake swap you can wrap assets on the binance bridge and turn the min to bep 20 assets this can be done on binance’s main platform. But the feature is also integrated into pancakeswap as well. while liquidity pools for ERC tokens are not widely used on pancake swap this tool allows Ethereum fans to enjoy binance’s optimized smart contracts without selling their assets syrup pools.
  • Syrup pools are another innovative feature offered on pancake swap with these pools you can stake cake tokens in exchange for the tokens of an upcoming project on the binance smart chain. the main appeal of syrup pools is that they enable investors to speculate on a cryptocurrency that has not yet arrived on pancake swap. moreover, the exchange does a great job of bootstrapping liquidity for the new project by preemptively creating staking pools initial farm offering last but not least.
  • We have pancake swap’s most unique decks feature initial farm offering if are a decentralized version of icos that enables investors to support new projects by participating in tokensale to join a token. sale users are required to provide liquidity both for bnb and cake tokens once the sale is live. they can buy the project’s tokens by using the previously deposited liquidity since the project is not listed on the market yet during an investors pay a lower rate for tokens likewise the crowdfunding nature of disincentivizes developers to offer their tokens before they are officially released. if you have trouble understanding the nature of pancake swap simply think of it as Binance’s version of uniswap or sushi swap.

however, you also have to keep in mind that pancake swap is not another clone and that it practically offers way more features compared to its rival one major drawback is that some within the community refuse to use pancake swap. Because it is based on the binance smart chain partially due to the reason that the smart chain is not truly decentralized which breaks a fundamental defi rule but as long as users are willing to look past that pancake swap turns into a fast economic and diverse exchange that successfully outperforms the market apart from growing more swiftly compared to other platforms the project also managed to expand innovatively by offering never before seen features. Do you believe that pancake swap will replace ethereum uniswap and become the dominant decentralized exchange in defi.

LEAVE A REPLY

Please enter your comment!
Please enter your name here