PancakeSwap, like Uniswap, is an Automated Market Maker (AMM) cryptocurrency project. An AMM obtains liquidity from a reserve of assets that have been deposited through Liquidity Providers (LPs).
LPs, who may be regular crypto users like you and me, are encouraged to deposit tokens since they get a share of PancakeSwap transaction fees and CAKE tokens.
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PancakeSwap is a Binance Smart Chain application. While Binance is a prominent, if sometimes contentious, and centralized cryptocurrency exchange, the Binance Smart Chain is a blockchain that exists independently of the exchange.
One of the reasons PancakeSwap utilizes Binance Smart Chain rather than Ethereum is only because Binance Smart Chain offers reduced costs. The DEX runs on smart contracts, which are computer programs that run automatically when specific circumstances are satisfied.
PancakeSwap users may keep records of the digital currencies they have on the cryptocurrency exchange. BEP-20 tokens, which are digital currencies that are based on the Binance Smart Chain, are used by PancakeSwap.
One disadvantage of decentralized exchanges is that they can only interact with cryptocurrencies that are based on the blockchain on which they reside, while standard crypto exchanges can deal with a wide variety of coins.
| Component | PancakeSwap (CAKE) |
| Technologies | Automated Market Maker Model, |
| Market Capitalization | $3.2 Billion+ |
| Open-Source | Yes |
| Consensus Mechanism | Proof of Stake |
| Smart Contracts | Yes |
| Founders/Authors | Unknown |
| Launch Date | September 2020 |
| Circulating Supply of Coins | 252,043,050 CAKE |
| Maximum Coin Supply | None |
| Mining-based Coin? | No |
| Is PancakeSwap a Stablecoin? | No |
| Does PancakeSwap have a burn rate? | Yes |
| Does PancakeSwap have a Whitepaper? | Yes, the white paper can be viewed here |
Evolution and Development of PancakeSwap
The PancakeSwap exchange launched in September 2020. It provides a permissionless means to swap BEP20 tokens or tokens issued on BSC.
Users can trade, participate in liquidity pools, and yield farm LP tokens to reap a wide range of benefits from supplying liquidity to certain trading pairs and earning extra asset incentives.
According to the official whitepaper for PancakeSwap, the following milestones have already been achieved:
- The migration to PancakeSwap Exchange V2
- Major performance upgrades
- Initiation of CAKE staking
- The hosting of BSC community project pools
- Auto-compounding of CAKE-CAKE Syrup Pool
- Farm Auctions
- Lottery V2
- Prediction V0.2 launch
- NFT Drops
- Customizable user profiles
- NFT Market Phase 1
- Pancake Squad generative NFT Collection
Some of the items that are pending on the roadmap for PancakeSwap include:
- Team Battles/Trading Tournaments as a Service: enable BSC projects to advertise trading competitions for their LPs on PancakeSwap to enhance traffic (and burn more CAKE)
- On-site charts and other trading tools
- Zap (unilateral liquidity provision): The contract has been completed, and the development team is waiting for FE resources for final integration.
- The integration of liquidity provision flows that relate to Zap in “Trade.”
- UI and UX upgrades to Lottery
- The second phase of the NFTMarket is where authorized NFT collections can be bought and sold.
- Upgrades to the Profile Points Ecosystem
- Overview pages for “Earn” and “Win.”
- Ongoing reduction of emissions
What makes PancakeSwap unique?
PancakeSwap is an automated market maker; hence order books are not used, and the platform incorporates liquidity pools instead. Users can easily earn additional income by becoming liquidity providers; they can cultivate LP tokens and stake CAKE to get incentives.
They may also play lotteries and collect non-fungible tokens. PancakeSwap's native cryptocurrency, CAKE, is a BEP20 token that was introduced on Binance Smart Chain. CAKE's primary purpose is to encourage liquidity supply to the PancakeSwap ecosystem.
Users may receive incentives by depositing and locking their Liquidity Provider tokens. This is called yield farming, and users are rewarded with CAKE tokens. The tokens may be unstaked instantly. CAKE allows users to invest and earn future rewards.
In addition, PancakeSwap allows for non-fungible tokens to be exchanged for CAKE or stored in a wallet.
What are the main uses for PancakeSwap?
PancakeSwap is a Decentralized Exchange (DEX) where cryptocurrencies can be bought, sold, and exchanged. PancakeSwap's native token is CAKE. CAKE is important to the system's operation. For example, CAKE fills the DEX’s liquidity pools known as “SYRUP pools.”
The system also compensates CAKE holders for delegating specific voting privileges throughout the network. CAKE can also be used to purchase non-fungible tokens (NFTs). These digital trading cards are offered on PancakeSwap, with a rabbit motif.
What is the future potential for PancakeSwap?
PancakeSwap is still new. This makes us all wonder where it is going and if it will be a pioneer in DeFi. But, like any other DeFi protocol, PancakeSwap has its own set of hazards. Let us see.
Binance Smart Chain's security and dependability have won over both CeFi and DeFi customers. Pancake Swap is Uniswap for Binance Smart Chain sans the costs.
DeFi protocols are currently leading the way in terms of what makes cryptocurrency unique. Over half of these websites are just under two years old. PancakeSwap is powered by Binance Smart Chain, a cutting-edge DeFi network.
PancakeSwap is always trying to solve decentralization issues. If Ethereum's scalability and high gas pricing issues are not resolved soon, we should expect more interest for PancakeSwap, which might benefit CAKE.
Thanks to a huge trading network and a low-cost platform, the DEX is presently at the vanguard of DeFi technology. Also, if CAKE's price rises in perfect sync with its volume, the value of the platform might skyrocket.
Price analysis on PancakeSwap
PancakeSwap was initially launched in 2020, and its price analysis over the past five months are as follows:
| 2020 | September | October | November | December to date | |
| CAKE Price High | $1.1 | $24.52 | $20.41 | $20.25 | $13.06 |
| CAKE Price Low | $0.22 | $17.94 | $18.64 | $12.79 | $10.74 |
| Market Cap | $59.81M | $5.35B | $4.77B | $4.86B | $3.91B |
Price prediction on PancakeSwap
While the early phase of PancakeSwap did not experience widespread user acceptance, it required time for CAKE to earn that trust and strive towards it, demonstrating its mettle as a blockchain foundation.
CAKE cryptocurrency price predictions from algorithm-based websites suggest that the price of CAKE might reach $13.00 before the beginning of 2023.
Expert crypto analysts anticipate that the coin's value could double to $30.33 by the end of 2023, exceed $100 by November 2026, and reach $100.61 by the end of 2026.
Which wallets are the best option for storing PancakeSwap?
Users can choose from a wide range of cryptocurrency wallets that support CAKE, and these are the best options in the crypto space:
- MetaMask
- Trust Wallet
- Token Pocket
- WalletConnect
- SafePal
1. MetaMask: MetaMask is an excellent Bitcoin wallet for newcomers. When the program is launched for the first time, the mobile wallet makes it abundantly apparent that users are in complete control of their crypto assets.
Another feature of MetaMask is it will constantly remind the user to create some type of backup in case the user's phone is lost, stolen, hacked, or seriously damaged.
2. Trust Wallet: The Trust cryptocurrency wallet is a popular software wallet on the market today that has a high trust score. Around 160,000 customers currently use this open-source and decentralized smartphone crypto wallet to safeguard digital assets.
It enables traders to maintain track of their assets; they may even earn interest on cryptocurrencies, which is inherent in the future of non-custodial wallets.
3. Token Pocket: TokenPocket is accessible for Android, iOS, and PC, and it supports the vast majority of significant blockchains and cryptocurrencies.
TokenPocket began with supporting the EOS blockchain, but it has now expanded its support to include more blockchain applications and ecosystems.
TokenPocket is much more than a wallet. It is a DAppstore, a useful blockchain toolkit, a one-stop destination for blockchains and everything crypto. In addition, it is also one of the greatest sites to acquire the most recent blockchain and crypto news.
4. WalletConnect: WalletConnect is an open-source technology that uses QR codes and deep links to connect decentralized apps to mobile wallets. They are safer than pc wallet applications or browser extensions since users may safely interact with DApps using their phones.
WalletConnect links online applications to compatible mobile wallets. Start a WalletConnect session by scanning the QR code (for desktop use) or clicking a deep hyperlink (on mobile devices).
WalletConnect is a protocol and not an actual wallet that is used by numerous decentralized applications and wallets.
5. SafePal: The SafePal is a newcomer to the hardware wallet arena, supported by Binance Labs, Trust Wallet, and the Litecoin Foundation. It resembles an MP3 player.
The D-pad below the colour screen navigates different options, and a camera can scan QR codes to sign transactions. SafePal has a unique advantage over other hardware wallets because it is not wired unless it is plugged in to charge the battery or to receive updates.
After the device has been updated, SafePal's only contact with the world is through the screen's information.
Where can you buy PancakeSwap?
PancakeSwap (CAKE) can be bought, sold, and exchanged on any of the following leading cryptocurrency exchange trading platforms:
- MXC.COM
- KuCoin
- BKEX
- VCC Exchange
- Binance
1. MXC.COM: MXC, a cryptocurrency exchange founded in 2018 in Seychelles, East Africa, is fast gaining global recognition among cryptocurrency users. The MXC Exchange staff is world-class in every manner, with diverse professional experiences, notably in finance.
| PROS | CONS |
| MXC is well-known for its immersive trading experience and intuitive platform | There is no margin trading offered |
| The exchange is compatible with many digital assets | Fiat currencies are not supported |
| The trading costs are affordable | There have been several user complaints about the platform |
| The exchange has an innovative proprietary mobile trading app | |
| The security features are robust and kept updated | |
| Traders and investors can choose from several flexible payment methods |
2. KuCoin: KuCoin is a well-known brand in the crypto world for being a one-stop destination for all crypto activities. With over 200 coins and 400 markets. In addition, the exchange has become one of the most vibrant crypto centers online.
KuCoin is praised for its bank-level security, sleek interface, and beginner-friendly UX. It also provides a wide variety of crypto services like leverage and futures trading, a built-in P2P exchange, and quick exchange.
| PROS | CONS |
| KuCoin has low trading costs and withdrawal charges | There is no support for fiat trading pairs |
| The exchange is user-friendly to all types of traders and investors | Bank deposits are not supported |
| There is a vast selection of alternative coins | The exchange can be confusing for complete beginners |
| Users have access to 24/7 customer support | |
| Users can purchase coins using fiat currencies | |
| There are no forced KYC checks at the registration |
3. BKEX: BKEX is a British Virgin Islands-based cryptocurrency exchange. On the exchange, traders may purchase and sell cryptos. They have a worldwide cryptocurrency exchange platform, OTC trading, and fixed leverage ETPs.
| PROS | CONS |
| The exchange has low trading fees | Unregulated |
| There is a large list of supported crypto coins |
4. VCC Exchange: VCC is a centralized cryptocurrency exchange with offices in Singapore and Vietnam. The exchange officially launched in May 2019, making it a relative newcomer to the cryptocurrency industry. Since then, the exchange has expanded beyond Singapore and Vietnam to the rest of the globe.
| PROS | CONS |
| There are several services and features which are available on the exchange | Unregulated exchange |
| The trading costs are low | |
| Fiat deposits are supported | |
| There are several innovative services such as “learn and earn”, direct trading, and others | |
| The exchange is available in several countries | |
| There is an innovative mobile trading app offered |
5. Binance: Binance is an online cryptocurrency exchange where users may buy and sell cryptocurrencies. In addition, the exchange provides support services that enable customers to earn interest or conduct transactions utilizing cryptocurrencies.
| PROS | CONS |
| Binance is a reputable exchange with a high level of trustworthiness | There are some reported issues with account verification |
| There are low instant and non-instant purchase fees | The exchange is not available to United States clients |
| There is a large selection of digital assets | The corporate structure is not transparent |
| There are several additional services offered |
You can buy PancakeSwap safely from these cryptocurrency platforms.
Does PancakeSwap use coin burns?
Yes, in July, the exchange burnt $6.3 million CAKE tokens.
What is PancakeSwap’s largest Competitor?
Uniswap is PancakeSwap's largest competitor.
The distinction between PancakeSwap and Uniswap is that the former operates on the Binance Smart Chain, which has significantly lower transaction costs.
Uniswap operates on the Ethereum blockchain, which requires ETH for every Ethereum transaction, increasing transaction costs significantly in comparison to other platforms.
What is the Staking Process involved with PancakeSwap?
Additionally, PancakeSwap allows users to participate in the farming of its governance token, CAKE. Users may put their LP tokens on the farm, which are then locked up in a system that rewards them with CAKE.
Users can a wide variety of LP tokens, including, but not limited to:
- CAKE – BNB LP
- BUSD – BNB LP
- BETH – ETH LP
- USDT – BUSD LP
- DAI – BUSD LP
- LINK – BUSD LP
In addition, users can also earn more rewards when they stake their CAKE tokens in SYRUP pools. Once users have deposited funds to receive LP tokens and they have been used to farm CAKE, these CAKE tokens can be staked when they are locked in staking pools.
What can PancakeSwap smart contracts do?
Decentralized exchange PancakeSwap enables you to swap cryptocurrencies and tokens while preserving custody of your tokens. It uses Binance Smart Chain, the blockchain technology managed by the crypto exchange Binance.
Instead of interacting with an order book and finding an opposing trader to trade tokens with, users can utilize smart contracts to lock their coins into a liquidity pool. You may make whatever trade you desire, and users that leave their cash in the pool win prizes.
PancakeSwap has several different smart contracts, and these are as follows:
- Farming contracts where every farm has its proprietary contract
- IFO Contracts
- Factory v2
- Router v2
- Lottery v2
- Prediction v2
- Main Staking Contract (MasterChef)
Is PancakeSwap a Good Investment?
PancakeSwap can be a good investment.
While a quick look at numerous technical indicators may predict a bleak future for CAKE, potential investors must consider that price projection is limited to technical elements. In addition, there is also a lack of technical proof to build a firm foundation.
The PancakeSwap exchange and platform have a lot of potential to contribute to the upcoming Defi. In addition, PancakeSwap features much lower transaction costs than other blockchains, including Ethereum.
Pancake's network pools now have 16 tokens available for staking, with the most popular pool, Auto CAKE, providing an APY of 72.70%.
The advantages of stake farming on PancakeSwap are many. The liquidity of the Binance smart chain is its strongest feature. PancakeSwap has the most daily users of any DApp and the fourth-highest trading volume.
Cake has an incredibly high daily volume, which is fantastic for an investor searching for a token to bet. It is simple to get into or out of staking CAKE.
What is the supply and distribution of PancakeSwap?
PancakeSwap has a circulating supply of 252,043,050 CAKE, and there is no limit on its supply.
Is PancakeSwap a viable Alternative Coin?
Yes, PancakeSwap is a decent alternative coin in terms of:
- Traceability – transactions are on a public ledger, but the identity of the sender/receiver is not known. Participants are known by public addresses and not names or locations.
- Security – PancakeSwap is a secure blockchain and DEX.
- Technology – PancakeSwap uses innovative and robust technology.
Any cryptocurrency that isn't Bitcoin is referred to as an altcoin.
What are the differences between PancakeSwap And Bitcoin?
Bitcoin is the largest cryptocurrency that has the highest market capitalization of all cryptocurrencies. Bitcoin is a store of value and a medium of exchange, while CAKE is a token that can only be used on the PancakeSwap exchange.
Bitcoin is the most popular crypto and one of the most secure blockchains in the world. However, PancakeSwap's price has shown increased performance when compared to Bitcoin and other popular cryptocurrencies.
| Bitcoin | PancakeSwap | |
| Price change 20/21 | +400% | +1,000% |
| Market Cap | $800 Billion+ | $3.2 Billion+ |
| Past Hacks | None | Exchange hacked 2023 |
| Popularity | Very High | Medium |
| Altcoin Rank | #1 – Original Crypto | #53 |
What are the differences between PancakeSwap and Ethereum?
Ethereum is the second-largest crypto in the world and the largest alternative cryptocurrency. Ethereum is a programmable blockchain that is used by developers to create and launch smart contracts and DApps.
PancakeSwap is a popular exchange trading platform that is decentralized and accommodates the purchase, sale, and exchange of many cryptocurrencies, including Ethereum.
| Ethereum | PancakeSwap | |
| Price change 20/21 | +880% | +1,000% |
| Market Cap | $460 Billion+ | $3.2 Billion+ |
| Past Hacks | None | Exchange hacked 2023 |
| Popularity | Very High | Medium |
| Altcoin Rank | #2 | #53 |
What are the differences between PancakeSwap and Dogecoin?
Dogecoin is a meme coin that was created in 2013 and was intended as a joke during the time that there was a lot of hype surrounding Bitcoin.
Dogecoin is a medium of exchange that is used to tip content creators, while PancakeSwap is a decentralized exchange (DEX) that features a wide range of cryptocurrencies that can be bought, sold, and traded.
| Dogecoin | PancakeSwap | |
| Price change 20/21 | +7,300% | +1,000% |
| Market Cap | $22 Billion+ | $3.2 Billion+ |
| Past Hacks | None | Exchange hacked 2023 |
| Popularity | High | Medium |
| Altcoin Rank | #12 | #53 |
What are the differences between PancakeSwap and NFTs?
Nonfungible tokens (NFTs) are digital assets that each have a unique value, with no two NFTs holding the same characteristics or value as another. PancakeSwap, on the other hand, is fungible, which means that one CAKE has the same value and characteristics as another CAKE.
How can users win NFT Collectibles from PancakeSwap?
Additionally, PancakeSwap allows users to earn non-fungible tokens (NFTs). NFTs are electronic representations of one-of-a-kind products. They may take the form of digital albums, figurines, or depictions of precious metals.
There is a page in the protocol dedicated to NFT winners. Because the winners are picked at random, visitors are encouraged to keep an eye on the website.
Users can either store their NFTs in a crypto wallet, or they can exchange them for CAKE.
Which other cryptocurrencies have a similar lottery to PancakeSwap?
Other projects that feature lotteries include Yarloo, Binosaurs, and Decentra-lotto.
