What is PancakeSwap?

Pancake Swap is a popular choice among investors looking to trade altcoins. However, before you Trade CAKE, it is essential that you know what you are investing in. Let's find out what's Pancake Swap and how it works.

PancakeSwap is a decentralized finance (DeFi) application that functions as an automated market maker (AMM), allowing users to trade tokens, create liquidity through farming, and receive fees in exchange.

Launched in September 2020, it is a decentralized marketplace where users may buy and sell BEP20 tokens on the Binance Smart Chain network. PancakeSwap is based on an automated market maker approach, in which users trade against a liquidity pool. Participants add money to the pool in exchange for liquidity provider (LP) tokens.

These tokens can be redeemed for a proportion of the trading costs and a future payout from the pool. These LP tokens are called FLIP. Users may also farm quasi-tokens on PancakeSwap, such as CAKE, and SYRUP. Users may deposit LP tokens on the farm and receive CAKE in return.

Users of PancakeSwap can trade BEP20 tokens, provide liquidity for the exchange in exchange for fees, stake LP tokens in exchange for CAKE, stake CAKE in exchange for additional CAKE, or stake CAKE in exchange for tokens from other projects.

How is Pancake Swap different?

In place of traditional order books, PancakeSwap relies on liquidity pools to facilitate trading. By contributing their tokens to the liquidity pool, users may cultivate LP tokens and stake CAKE for rewards, thereby becoming liquidity providers and increasing their earning potential. They can also participate in lotteries and use non-fungible tokens for the same purpose.

CAKE, the cryptocurrency used by PancakeSwap, is a BEP20 token that debuted on Binance Smart Chain. CAKE's primary purpose is to incentivize participants in the PancakeSwap platform to provide liquidity.

Users can stake their tokens by depositing and locking up Liquidity Provider tokens in exchange for incentives. This practice, called as farming, earns participants CAKE tokens from the system. There is no minimum holding period required to unstake the tokens. Users of CAKE are exposed to the possibility of future investment earnings but also to the associated risks.

There is a lottery on PancakeSwap that may be accessed using CAKE. It takes about 6 hours for a full lottery session. Each ticket costs 10 CAKE and features four numbers between 1 and 14, such as 8-6-4-13. All four numbers on your ticket must match those on the winning ticket for you to win the jackpot, which is worth half of the total lottery pot.

How Many CAKE Tokens Are There in Circulation?

As of November 2022, PancakeSwap (CAKE) has a circulating supply of 146,994,599.73 CAKE tokens, and no maximum supply data is available.

Network Security

Wallets that are compatible with the Binance Smart Chain are a safe place to store your PancakeSwap tokens. To name a few: MetaMask, TrustWallet, TokenPocket, and WalletConnect.

Founder

PancakeSwap was released as a decentralized exchange (DEX) based on the Binance Smart Chain by a group of anonymous developers who appear to be big fan of pancakes.

Where Can You Buy CAKE?

Cake is available on the licensed cryptocurrency exchange CryptoForce and several other national and international exchanges.

Disclaimer: Cryptocurrencies are highly volatile and subject to market, technical, and regulatory risks. Crypto trading requires one’s own diligence, and Cryptoforce will not be responsible for any losses incurred. Any information provided here should not be regarded as Cryptoforce’s technical or financial advice.