9 / 2020 Month, Binance launched Binance Smart Chain (BSC) to support smart contracts (smart contact). Then BNB's ecosystem also started with DEXs with extremely low gas fees.
The most prominent among decentralized exchanges is PancakeSwap with its rapid growth. At the same time, this is also one of the projects that Binance invested $ 350.000.
So what is PancakeSwap? What does it stand out?
Everyone, let's find out with Blogtienao!
What is PancakeSwap?
PancakeSwap is the leading liquidity provider on Binance Smart Chain launched on September 24, 9 with a TVL level of $ 2020 (in just 250.000.000 weeks from the time of launch).
Not to mention PancakeSwap also leads the swap volume, users, gas fees contribute to the BSC ecosystem.
In addition to decentralized exchanges that use the AMM model for BEP20 token swaps. PancakeSwap also applies the Gamification program that makes it unique compared to other competitors.
About Gamification, people can simply Pancake apply parts of the game to their model to motivate and delight users.
Furthermore the token will be used for more than just administration, swap and farming.
|Blockchain||Binance Smart Chain|
CAKE Token is generated every 25 CAKE per block. 30000 blocks are generated per day, which means 750000 CAKE will be generated.
This generated amount will be distributed 60% to the farmers and the remaining 40% will go to Stake CAKE.
Although the number of daily CAKEs is born is quite a lot, but PancakeSwap has a mechanism to burn coins so the inflation rate will not be high so people do not worry that it will fall in price due to too much birth.
PancakeSwap uses a model AMM on BSC so you can trade BEP20 assets with each other.
However, it will not be like normal exchanges. You will not be able to place orders that you trade in a liquidity pool.
Liquidity will be provided by Liquidity Providers (“LPs”) exchange them with FLIP tokens that can be brought to farm to receive CAKE.
Transaction fee on PancakeSwap is 0.2%. This fee will be allocated 0.17% for LPs and 0.03% for PancakeSwap Treasury.
Personally, when the above transactions are fast, smooth and the fee is cheap. Because there are many farms, when swapping the main coins, the deviation is not much.
This swap is very suitable for those who hold coins on the wallet. Once in a while, the swap will remain in the wallet. You will not need to move to an exchange to sell and then withdraw your wallet.
Currently Pancake has 27 liquidity pools that allow you to send FLIP tokens to farm out CAKE. The reward per pool will depend on the number of depositors and the reward of that pool.
60% of the block rewards (15 CAKE) generated each day will be distributed to the farmers. The list of pools you can refer to by following the link below:
I have been farming the CAKE-BNB pool on PancakeSwap, as I see it, although the profit is not much, only about APY (average annual profit) 290% but compared to the general ground is also quite good because this farm is the safest in farms on BSC.
If the price of CAKE increases, the average return will increase. However, when the price of CAKE decreases, you will suffer a loss both in terms of the price of CAKE and BNB added to the pool for CAKE-BNB. To understand this part, I will explain in the section Add liquidity (add liquidity) Please.
Staking Pools is a place that allows new projects to promote their projects to the PancakeSwap community by distributing a portion of the token to the CAKE holders.
The Staking Pools are divided into two parts:
- Core: The project will be selected by the team of PancakeSwap.
- Community: The project is voted by the community
note: Any project can distribute tokens on Staking Pools. However, the winning projects with new votes are listed at swap.
In addition to using CAKE to stake new tokens, you can also use CAKE to stake out CAKE with APY at the time of writing up to 320%.
The only risk when you join Staking Pools is the CAKE price drops. If the price of CAKE increases during staking, you will receive compound interest.
Lottery is a blockhash based lottery test, so you can rest assured there is no fraud. Lottery tickets are available with 10 CAKE with unlimited number of purchases.
When buying lottery tickets, people will get 4 random numbers. If your tickets match the results in the order, you will receive a proportional reward:
- Win 4 numbers in order: divide 60% of the total.
- Win 3 numbers in order: divide 20% of the total.
- Win 2 numbers in order: divide 10% of the total.
- Burn 10% of the total solution.
*Note: If there is only one winner, there is no need to divide. And if no one wins the 3-digit prize, 20% of the prize will be burned.
Winning tickets are determined in order based on the results. You can refer to the following example for better understanding.
The resulting example is "3-8-9-1".
- "3-8-9-1" matches 4 numbers with 60% solution
- "5-8-9-1" matches 3 numbers with 20% solution
- "3-0-9-1" matches 3 numbers with 20% solution
- "3-5-8-1" matches 2 numbers with 10% solution
In my opinion, this lottery game will help CAKE to be used more. The number of CAKEs burned in the Lottery will help this token avoid inflation and positively affect the price.
Analytics makes it possible to view liquidity, volume, and price metrics of pairs on PancakeSwap.
You can use this Analytics to analyze prices as well as some basic information. Visit Pancake Analytics:
A place where the community can vote and suggest their ideas to help develop the project.
There are 2 types of Core and Community proposals:
- Core: PancakeSwap's proposal, if approved by the community, the proposal will be made.
- Community: community proposal that shows each person's point of view. If any proposal is strongly supported by the community, the PancakeSwap team will be standardized to CORE.
People can access Voting under the following link:
IFO (Initial Farm Offering) is a form of fundraising for the project with the CAKE-BNB LP token. After the exchange of LP tokens, BNB will be allocated to the project and CAKE will be burned.
That is, you use CAKE and BNB to add liquidity to CAKE-BNB LP token to buy tokens of the funded project. The BNB in the LP will be given to the project and the CAKE will be burned.
This is a good product to help reduce CAKE inflation caused by farming and staking.
Is PancakeSwap safe?
PancakeSwap is a decentralized application (dapp) that interacts directly with smart contracts. So, if there is an error in the code then there can also be security problems.
But everyone can feel secure to trade and farm on PancakeSwap because they are checked and tested by Certik.
You can check out the Audit Report from the link below.
Instructions for use PancakeSwap
To use PancakeSwap, you must first set up a wallet using Binance Smart Chain.
Here I will guide you to use Metamask for web version and trust wallet with mobile device.
Set up a Binance Smart Chain wallet
1. First you have to download Metamask wallet and install it. To create into settings you can refer to below.
2. After installation is complete, click on the Ethereum Mainet line
3. Select "Custom RPC"
4. Fill in the information below
|Network Name||Binance Smart Chain|
|New RPC URL||https://bsc-dataseed.binance.org/|
|Block Explorer URL (optional)||https://bscscan.com|
5. Select the Save button.
So you have successfully set up Binance Smart Chain wallet already. The rest you just need to send BEP20 and BNB assets as gas fees to be able to trade.
1. First enter everyone also set Trust wallet and save the recovery phrase. The steps, people watch instructions on how to create trust wallet ok
2. Find Smart Chain wallet
3. Load the BEP20 asset into your Smart Chain wallet address. You can withdraw BEP20 from Binance exchange to your Smart chain wallet address. You must have enough BNB as a gas waste.
4. Now you can use Smart chain wallet already!
note: To access Pancakeswap on a dynamic device, you must use the Dapps browser on the trust wallet. Dapps browser is available on Android trust wallet, iOS devices show you here.
Transactions on PancakeSwap
- Access the deals page squid fishing tours.
- Get on the button "Connect a wallet”At the top right of the screen to connect the Binance Smart Chain wallet.
- Choose the type of token you want to trade
- Select the button "swap"
- Check the transaction and click on the button “Confirm swap"
- Confirm the transaction at your wallet
- It is done! You can click on the line "View on bscscan”To view transaction details.
Farm on PancakeSwap
- First you go to the farm page squid fishing tours.
- Connect wallet by pressing the button “Connect“. Then choose the type of wallet you are using.
- Select the Farm you want to join. Here I will for example farm CAKE-BNB offline
- Add Liquidity by going to the Exchange page pool squid fishing tours and click "Add Liquidity"
- Select the pair you want to add liquidity and receive "Supply“. If you farm CAKE-BNB, add CAKE and BNB liquidity.
- Review the information and confirm additional liquidity by pressing “Confirm Supply".
- Confirm additional liquidity in your wallet
- After adding liquidity, you will get CAKE-BNB FLIP (liquidity token).
- Now go back to the farm page and choose the farm you added liquidity by pressing the button "Select".
- Checked on "+”To stake FLIP token.
- Enter the amount of FLIP tokens you want to farm and press the button “Confirm“. Confirm the gas charge on your wallet.
- Done! Now just sit back and wait for the CAKE to harvest.
Note when farming CAKE
Those who want to farm again just need to reverse the process above. Press Unstake and into section pool select part Your Liquidity click on remove is to be.
However, everyone should note. Depending on the price fluctuations of BNB and CAKE, receiving the CAKE and BNB numbers back will not be the same amount you put in.
Staking on PancakeSwap
- Access the Staking interface squid fishing tours.
- Click on the "+“, Enter the amount of cake you want to stake and press the button Confirm.
- Accomplished! Now you can receive CAKE.
New Stake Tokens on Staking Pools
- First, everyone goes to Staking Pools squid fishing tours.
- Select the Pool you want to use CAKE to stake. For first-time stakes press the button Approve CAKE Please. The next times will not be needed.
- Select the match button "+“. Here I choose CAKE Pool as an example.
- Enter the number of CAKE you want to stake at CAKE Pool and press “Confirm" To confirm.
- Done here. Now you just wait and receive a new token.
When you want to stop, just Unstake CAKE it's done
Join the Lottery on PancakeSwap
- Lottery Access squid fishing tours.
- Press the button "Buy ticket”And enter the number of tickets you want to buy. Then confirm at the wallet is finished. If anyone buys for the first time, he must "Aprrove CAKE"Then the Buy ticket button will appear.
- So have finished buying it. You can check the ticket by clicking on the line View your tickets.
- Lottery results will be announced when the displayed time runs out. As shown below, there are 3 hours and 31 minutes to go to the lottery. The results will be displayed at Latest Winning Numbers.
As one of the upcoming BSC projects invested by Binance, PancakeSwap still has many products that are expected to be launched.
Upcoming products list:
- Lending & Borrowing: Borrowing BSC token and LP token. CAKE will be used as a discount.
- Margin Trading: Trade BSC token with on-chain leverage - CAKE will be redeemed and burned periodically.
- NFT Ecosystem: Mint, trade, breed, ... all will be paid by CAKE
- NFT-based Gamification: Complete quests, level up ... to get NFTs - use CAKE to mine.
With the Roadmap it is clear that the role of CAKE will be used more and the amount of CAKE burned will increase. Since then, the price of CAKE is likely to increase in the future as more products are released by PancakeSwap.