PancakeSwap CAKEPrice $ 2.08

Pancake Swap is a decentralized exchange based on the Binance Smart Chain (BSC), built to trade BEP-20 tokens without relying on centralized platforms. PancakeSwap uses an AMM system meaning that all transactions are fully decentralized, and control of funds always remains in traders’ hands. 

The platform allows users to trade and earn, it also offers a variety of ways to win crypto. PancakeSwap has a BEP-20 token, CAKE, the main function of which is to incentivize liquidity provision to the PancakeSwap platform. 

What are CAKE’s key features and how does it work?

PancakeSwap, like similar DEXs, uses an AMM. This means that instead of order books, liquidity is provided by users into liquidity pools. Trades are then executed via smart contracts, thus removing any third party.

PancakeSwap is based on BSC, which means that it can offer lower transaction fees compared to alternative DEXs, which tend to be based on the Ethereum blockchain. 

PancakeSwap users can also earn passive income by providing liquidity, and via many of the other diverse tools and products for users. For example, users can enter trading tournaments and prediction markets, and developer teams can join launchpads.

What makes PancakeSwap noteworthy?

PancakeSwap is the largest swap on BSC and in terms of total value locked (TVL), it has surpassed even Uniswap. PancakeSwap’s token, CAKE, allows users to invest, earn passive income and take part in reward programs.

For instance, users can stake their tokens to earn rewards, which is done by depositing Liquidity Provider tokens and locking them up. This is known as farming and is rewarded through CAKE tokens, which can be un-staked with zero lockup time. 

Initial Farm Offerings (IFO), decentralized versions of ICOs, are a way to get a newly launched token in the hands of users using yield farms. On PancakeSwap, you can do that by committing LP tokens to a supported pool, at the moment only CAKE-BNB pool, to get access to the sale of a newly launched token.

CAKE can also be used to enter a lottery on PancakeSwap. A single ticket costs 10 CAKE and comes with a random combination of four numbers between 1 and 14. To win the jackpot (50% of the entire lottery pool) the numbers in your ticket must match all four of the numbers in the winning ticket. There are also smaller prizes on offer.

Where can you buy CAKE?

CAKE is available to buy on most popular exchanges, for example, Binance.

You can swap CAKE tokens on any DEX working on BSC, or trade for CAKE on the CEXs listed on the market tab. It can be traded against FIAT, stablecoins, and other cryptocurrencies.