ZoneBitcoin EditorialYes, you're used to it now, right? Another protocol with a name that makes you hungry. If you have the appetite and the appetite for this type of project, this article will satisfy you (normally).
We're going to talk about the protocol that's all the rage at the moment: PancakeSwap. The biggest uniqueness of Pancake Swap compared to these counterparts is that this time around, the protocol has been deployed on Binance Smart Chain (BS) and not on Ethereum.
This also indirectly reinforces the idea that the new trend is indeed playing out on the Binance Chain today…
Moreover, PancakeSwap is similar to the Sushiswap protocol developed on Ethereum. However, Pancake brings some very interesting new features. Why interesting? Well, you can make money with PanCakeSwap and that's what we'll see here 😉
Oh yeah!
You are ready?
PancakeSwap Overview
If you already know Uniswap or sushi swap or other similar protocols with a food-related name, then you already know PancakeSwap. Finally, you understand how it works at least.
However, as you will see, the protocol offers more features. Some of them will interest you, you will see ;)
PancakeSwap is therefore a decentralized exchange platform that allows you to exchange BEP-20 tokens. BEP-20 tokens are those deployed on the Binance SmartChain.
Like many protocols of the same type, PancakeSwap allows for Yield Farming (what we call yield farming in DeFi).
And, it is in fact Yield Farming and the promise of high returns which is at the origin of the massive enthusiasm for DeFi protocols which make it possible.
The PancakeSwap exchange
Like many similar protocols, PancakeSwap uses a so-called automated market maker (AMM) model. You can therefore trade assets on the platform, without going through an order book as is the case with centralized platforms such as Binance for example. There, it is the " liquidity pool » which allows operations to be carried out.
Liquidity pools can be funded by anyone. This is how we become what we call a “Liquidity Provider”. To encourage users to provide liquidity, platforms give them rewards. These are generally made up of part of the transaction fees of the commissions and in addition, they can be given dedicated tokens. Very often this is an LP liquidity provider token.
For example, if a liquidity provider decides to fund a pool of the BUSD/BNB pair then it will receive BUSD-BNB LP tokens in return.
Thus, depending on each person's uses, we can use PancakeSwap to exchange BEP-20 tokens simply and inexpensively. One can also decide to become a liquidity provider to earn rewards.
That said, as we discussed above, PancakeSwap offers even more other opportunities. We will cover them in this article, rest assured.
The CAKE token
Most protocols have their own governance token. Pancake has his and it is the CAKE token.
How to get started with the PancakeSwap platform.
First of all, you need a wallet like MetaMask or another wallet like Trust, for example.
We chose MetasMask because we are used to this wallet but you can choose any wallet which can integrate with the protocol. Free to you.
If you want to connect with PancakeSwap immediately, you should remember that we are on the Binance Smart Chain. Therefore, you must switch networks to be able to connect your wallet. Otherwise it will give you error.
So if you want to use MetaMask and connect, you will need to enter a new RPC. Go to your Metamask tab and click on "Custom RPC" and enter the following information:
Then, you will obviously need to have tokens such as BUSD or BNB.
To do this, you can go to Binance and buy some directly on the platform. Once you have purchased them, you will need to send them to your wallet on your BSC mainnet.
For the deposit address therefore, simply copy and paste your BSC address.
Now you just need to paste it on the deposit address of your withdrawal on Binance.
Attention! When depositing, you will need to choose the Binance Smart Chain network! It is very important to select the correct box otherwise your withdrawal will be lost!
As a precaution, Binance will ask you to answer 3 questions to make sure you understand how the BSC network works.
Once you validate your withdrawal, within a few moments, it will appear on your MetaMask wallet.
And, so, from there you can log in with one click to the PancakeSwap platform and start using the platform to the fullest!
How to trade tokens on PancakeSwap:
Yes, in PancakeSwap, there is the word “swap” and fundamentally, it remains a platform for exchanging tokens.
For example, when you click on “Exchange”, you will be able to exchange your tokens. For example, we exchanged 45 BUSD to receive more than 3 CAKE.
Before validating your swap, take into account the fees and impacts on the price.
There you go, once you confirm, you have CAKE!
Delicious, isn't it?
>>> By the way, you can also buy them directly on Binance 😉
Now, let's see what else we can do on the platform and with our CAKEs.
Add liquidity
Again, this is really the best-known method of this type of protocol. There's no getting away from it with PancakeSwap.
You can add liquidity and become a “ liquidity provider" , For example.
The Farm method to earn tokens
What interests many people about PancakeSwap is certainly the fact that you can also earn CAKE.
The Farm method consists of staking the Liquidity Pool token.
It's up to you to choose the pair you want according to the yield that interests you the most.
Once you stake them, then you will receive CAKE tokens.
Staking CAKE in the Syrup Pool
And, yet another way to earn rewards on PancakeSwap! Another pancake! And with syrup please!
This time, you can also stake your CAKEs in the Syrup Pool.
There are several staking pools for different tokens. Obviously, the most important pool is that of CAKE.
You must deposit CAKE to be able to earn the token of your choice in return.
The PancakeSwap lottery
There is also a lottery for the lucky ones among you who want to try their chances of winning even more CAKE.
Each lottery session lasts 6 hours. To participate you must have a ticket. Each ticket costs 10 CAKE, which will give you a random combination of four numbers between 1 and 14. For example, you may have a ticket with the following numbers 2-1-14-7. To be the lucky winner of the jackpot (and hold 50% of the entire lottery pool), the numbers on your ticket must match the four numbers that will be drawn in the winning ticket.
Well, the good news is that you don't have to have all 4 numbers in order to win. You can also win if you have two or more numbers in the same order.
Not bad is not it?
Win NFTs (Collectibles)
What? Is there anything else on PancakeSwap?
Yes, and there you can win special NFTs.
Well, NFTs are a world in themselves, as you probably know.
In any case, for a CAKE, you can have your own profile with your own collective with the image of a rabbit. Given the frenzy of NFTs, we can perhaps think that it will be worth a fortune one day?
Teams and profiles
Another little innovation from PancakeSwap. You can create your public profile first. Then, you can join already formed teams and even form your own team.
Although it's just a start, this section looks promising. Teams can compete to participate in different achievements.
IFO (Initial Farm Offerings)
You don’t know IFOs yet? This is an interesting way to obtain a newly launched token. It's a kind ofICO in a superior and more organized version. LP tokens can be validated from a pool to access the sale of a brand new token.
Besides, you are probably aware that those who make big moves with cryptos are especially those who know how to invest at the beginning. At the start of a project before it explodes.
Is PancakeSwap safe?
PancakeSwap has been audited by the recognized industry body: CertiK. So from a code security point of view, the platform is safe.
That said, even with auditing, a platform is never 100% secure. Likewise, it remains an investment and like any investment, it involves risks.
We don't know if Yield Farming, for example, is a fad. So, the ideal as always is to only invest the amount you can afford to lose.
Conclusion on PancakeSwap 🥞
On the Binance Smart Chain (BSC), PancakeSwap remains one of the largest AMM projects and it must be admitted that it did not just clone similar protocols. Features and methods for earning crypts are quite innovative.
In this we can welcome the initiative.
Furthermore, even if it was Ethereum which launched the big DeFi trend, it seems that Binance Smart Chain is largely taking over.
Is it just hype?
Will all these projects lead us to widespread indigestion? We can remember the story of the HOTDOG token which, after reaching $6000, became in a few hours, another shitcoin, lost forever in the stomachs of speculators.
However, PancakeSwap seems to stand out from clone protocols, with innovative tools and a rather complete interface. So, we could believe that it will make the difference and will even bring seriousness to this universe which borders on junk food (see token food), Sometimes…
For further :
- Do farming on Binance Smart Chain
- Understand the Yield farming
Note: No financial advice is given in this or any other article on zonebitcoin. This is information of which you are the sole judge and master. Be responsible with your investments and only invest as much as you are willing to lose.
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