PancakeSwap has become the most famous decentralized exchange. It managed to beat Uniswap with $3.2 billion in total value locked and more trading volume. The platform works on top of the Binance Smart Chain which means there are fewer fees and it’s faster.
What do you need to start using PancakeSwap?
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To connect to PancakeSwap, you will need one of the following browser extensions: Metamask, Trustwallet, MathWallet, TokenPocket, WalletConnect, or the official Binance Chain Wallet. For simplicity’s sake, we will be utilizing Metamask as it can be connected to a variety of chains.
In order to connect your Metamask to the Binance Smart Chain, you can follow Binance’s official guide here.
Once you have connected to CakeSwap through your Metamask, you will be able to freely navigate the website.
PancakeSwap offers a variety of features. On Farms, you can stake LP tokens that payout in CAKE up to 550% APY on some of them. Since PancakeSwap utilizes BSC, approving and staking will cost less than $1 total.
Additionally, the platform offers a lottery option where you can buy tickets using CAKE and win big pots.
The pot can be huge as it depends on the number of tickets users bought. The next most important feature of PancakeSwap is the IFOs (Initial Farm Offerings) which allows users to farm new tokens through CAKE.
Most recently, PancakeSwap introduced collectibles in the form of NFTs that players can earn through a variety of tasks. The total supply of CAKE is infinite but the team has put in place several mechanisms to reduce its inflationary nature.
For instance, users can vote to reduce the emission of CAKE per blow, but there are also regular token burns. For instance, 10% of the CAKE spent on lottery tickets is burned, similarly, 100% of the CAKE raised in IFOs is also burned and about 9.09% of the CAKE harvested in farms, is also eventually burned.
Lastly, but not least important, PancakeSwap is a decentralized exchange, which means that you can swap tokens easily through an Automated Market Maker (AMM).