BetterHelpBesides the fact that gas fees are skyrocketing, the Ethereum network is terribly overwhelmed as we speak. This situation, of course, has prompted the need for some traders to shift to networks which not only guarantee efficient trading but also come with relatively affordable fees.
Interestingly, BSC (Binance Smart Chain)-based decentralized apps come into the spotlight as reliable alternatives to Ethereum-based exchanges. With PancakeSwap being a BSC-based decentralized exchange with reduced fees and expeditious transactions, there’s a strong impression that it could be your best alternative to Ethereum-based decentralized exchanges.
There are a couple of convincing reasons why PancakeSwap could be your escape route from the drawbacks of UniSwap and certain other Ethereum-based decentralized exchanges. Ranging from the chance to earn CAKE tokens down to the guarantee of lesser trading fees and getting rewarded for liquidity provision, the benefits of PancakeSwap are definitely worthwhile.
This post is a detailed review of PancakeSwap and as such, it will walk you through most of the things you may want to know about the BSC-based exchange. If you’re on the fence as regards choosing PancakeSwap (probably for fear that it could be a scam), you may rest assured that towards the end of this post, you’ll get to know if the exchange is legit or not.
Design-wise, PancakeSwap looks very much like UniSwap and so, chances are that you’ll have a quick grasp of PancakeSwap provided you’re already conversant with UniSwap.
In the rest of this post, you’ll find out how PancakeSwap works, how token staking is done, what PancakeSwap fees seem like as well as the supported cryptocurrencies and wallets for trading on the exchange.
How Does PancakeSwap Work?
PancakeSwap works as a BSC-based exchange adopting the automated market maker (AMM) which removes the need for order books. By virtue of its AMM model, PancakeSwap helps replace order books with liquidity pools.
Besides being an exchange with relatively affordable trading fees, PancakeSwap lets you reap rewards through a couple of earning routes. Broadly, users of PancakeSwap can opt to earn as liquidity providers, convert LP (Liquidity Provider) tokens into CAKE (via the “Farm” process), channel their tokens to liquidity pools and even stake earned CAKE.
As if the listed earning routes aren’t enough, PancakeSwap avails users the chance to reap more rewards by partaking in its NFTs and lotteries. If you’re keenly interested in PancakeSwap, you’re very likely to find it handy for profitable crypto trading. Particularly, you could take advantage of your LP tokens to earn CAKE –PancakeSwap’s official token currently valued at $14.19.
What Wallets Can You Use with PancakeSwap?
PancakeSwap-compatible wallets include TrustWallet, WalletConnect, TokenPocket, MetaMask. While such wallets must be linked to the Binance Smart Chain, you may have to find out how to connect your chosen wallet to BSC (Binance Smart Chain), particularly if that wallet requires manual connection. A good example is MetaMask which definitely requires some manual procedure for connecting to BSC.
What Cryptocurrencies Are Supported on PancakeSwap?
Since PancakeSwap is based on the Binance Smart Chain (BSC), there’s no need stressing that BEP20 tokens are the coins supported on PancakeSwap. Same way ERC20 tokens serve as the standard coins on Ethereum, BEP20 tokens are relatively the standard coins used on the Binance Smart Chain.
With your BEP20 tokens and apt knowledge of how PancakeSwap works, you definitely have a real shot at successfully trading cryptocurrencies on PancakeSwap.
What Are the Fees Like on PancakeSwap?
PancakeSwap doesn’t come with exploitative fees that could dissuade you from using the crypto exchange. Unlike the associated gas fees on Ethereum, the transaction fees on PancakeSwap are comparatively favorable.
More favorably, you won’t have to pay any withdrawal or deposit fees while using PancakeSwap. All you’re paying for is the service charge on your interaction with the Binance Smart Chain. This service charge translates into a 0.2% trading fee with PancakeSwap Treasury taking 0.03% of it while liquidity providers are entitled to the remaining 0.17%.
Token Staking on PancakeSwap –How Is It Done?
Token staking is one great way you can benefit from using PancakeSwap. While there are two basic approaches to it, token staking is a proven way of earning rewards.
The first approach to token staking is basically the “Farm” approach. Put simply, this approach requires you to make a deposit of LP (Liquidity Provider) tokens and leave the deposit locked up such that it fetches you CAKE in the long run.
Notably, the second approach necessitates CAKE staking in Syrup Pools with an ultimate reward in form of the Syrup token. However, PancakeSwap is said to have discovered an exploit in the smart contract of Syrup, hence resulting in the abolition of Syrup Pools.
What PancakeSwap does now is that in return for your staked CAKE, it avails you the chance to earn a number of tokens.
The summary of token staking on PancakeSwap is that you can convert your LP tokens into CAKE by locking up the tokens through the “Farm” process. While CAKE serves as the token of PancakeSwap, you can further stake your earned CAKE in return for a number of tokens.
Farming and staking on PancakeSwap
PancakeSwap also allows you to farm its governance token – CAKE.
Practically, if you want to farm on pancakeswap, you can deposit your LP tokens, locking them up accordingly, you get rewarded with CAKE. Which LP tokens can you deposit?check them out below:
- CAKE – BNB LP
- BUSD – BNB LP
- BETH – ETH LP
- USDT – BUSD LP
- USDC – BUSD LP
- DAI – BUSD LP
- LINK – BUSD LP
- TWT – BNB LP
The rewards don’t end here, however! You can earn even more by staking your CAKE in SYRUP pools.
So you’ve deposited some funds to receive LP tokens, and you’ve used them to farm CAKE. From there, you can stake your CAKE and earn other tokens through special staking pools.
The biggest SYRUP pool is simply for CAKE, where you can stake your CAKE to earn even more CAKE! But there are many more tokens you can earn by staking CAKE, so be sure to keep an eye on the SYRUP pool page.
Pancakeswap Lottery
That’s great, but what else can you do with your CAKE? Well, you can enter a lottery on PancakeSwap.
Each lottery session takes 6 hours. One ticket costs 10 CAKE, which will give you a random four-digit combination of numbers between 1 and 14, for example, 12-8-4-3. To win the jackpot (50% of the entire lottery pool), the numbers in your ticket need to match all four numbers in the same position as the winning ticket.
What if you don’t match all four? No worries. You also win rewards if two or more of your numbers are in the same position as the numbers in the winning ticket.
Pancakeswap NFTs
Wait, so you can do even more with PancakeSwap? Yes, you can win special NFTs.
Win some of the cutest NFTs on BSC.
If you’re chosen as a winner of an NFT, you can trade it for the CAKE value it represents or keep the cutie in your wallet as a collector’s item.How can you get involved? You need to register for a chance to win, and the winners get chosen at random. Make sure to keep an eye on the NFT page for upcoming opportunities.
Is PancakeSwap a Legit Platform?
To a reasonable extent, PancakeSwap has proven to be a safe and secure exchange. As a way of allaying users’ fears or doubt, PancakeSwap engaged the service of CertiK for the auditing of its codes. Favorably, the results of Certik’s auditing have revealed that PancakeSwap’s code is free from security threats, making PancakeSwap a safe exchange.
Generally, there hasn’t been any gut-wrenching scam alarm against PancakeSwap since the launch of the platform.
Conclusion
PancakeSwap has been touted as the largest BSC-based exchange with its trading volume in excess of $600 million. Even if the benefits of PancakeSwap aren’t anything to consider, the platform’s status as the largest BSC-based project is nothing short of remarkable.
If you’re really keen to switch to BSC-based exchanges considered worthy alternatives to SushiSwap or similar Ethereum-based exchanges, PancakeSwap could be the best option on your list.
mitrobe
James steller
