Everything you need to know about the BNB Chain decentralized exchange
PancakeSwap is a decentralized finance dapp running on BNB Chain. It offers DeFi users a wide variety of functionality and crypto tools like swapping, liquidity farming, and staking. The PancakeSwap ecosystem is powered by the platform’s native token, CAKE.
PancakeSwap is the most visited decentralized exchange on BNB Chain. According to DappRadar data, the dapp attracts thousands of users daily, allowing them to quickly swap between tokens on the blockchain.
Importantly, there isn’t an order book. Instead, users trade against a liquidity pool. Those pools are filled with other users’ funds. In simple terms, users deposit them into the pool, receiving liquidity provider tokens in return. They can use those tokens to reclaim their share, plus a portion of the trading fees. In short, you can trade BEP-20 tokens or add liquidity and earn rewards.
CAKE as the PancakeSwap powerhouse
To facilitate a stable environment for the complex DeFi tools and functionality, PancakeSwap relies on its native token CAKE. CAKE is a BEP-20 token on the BNB Smart Chain, which serves as the backbone for most staking and liquidity pools on the platform.
The native PancakeSwap token has a complex minting and burning mechanism, allowing it to serve as a rewards token and the main currency on the platform. Aside from its foundational function, CAKE enables users to benefit from a wide range of use cases, including the governance of the platform itself:
- Stake it in Syrup Pools to earn free tokens
- Use it in Yield Farms to earn more CAKE
- Buy Lottery tickets in the PancakeSwap Lottery
- Participate in IFO Token Sales
- Create your Pancake Profile and mint NFTs
- Vote on proposals relating to the PancakeSwap ecosystem
Earn interest with Syrup Pools
Syrup Pools are one of the most utilized functionalities on PancakeSwap as they allow users to earn interest by providing liquidity. Notably, the CAKE Syrup pool attracts the most users.
To learn more about PancakeSwap, check out its official DappRadar page. Additionally, if you are excited to dive into the sweet Syrup Pools, you can quickly get your hands on some CAKE tokens here. Follow DappRadar on Twitter to get the latest DeFi news and learn more about the exciting web3 space.