What is Pancakeswap? Review of the Uniswap analogue on the Binance Smart Chain network
This is a non-codial platform based on Binance Smart Chain (BSC) for exchange, profitable farming using the BEP-20 standard tokens. The site has its own CAKE token and is an analogue of Uniswap and Sushiswap. But unlike these Ethereum Expressions, Pancakeswap has faster transactions and low commissions, since BSC is a much more centralized analogue of the Ethereum.
To maintain trading operations, the platform uses an automated market maker model (AMM). This means that Pancakeswap does not have the usual order book. Instead, exchange trading is carried out as part of a liquidity pool, which users themselves fill in. In return, they receive tokens of the liquidity supplier (LP), which are needed to receive income from trading commissions, pharmination and other things.
Who and when created Pancakeswap?
The platform was launched on September 20, 2020 by unknown developers with the support of Binance. In February 2021, Pancakeswap became one of the largest exchange of the Defi-segment in terms of bidding, and in March, UNISWAP surpassed the total amount of blocked funds (TVL)-$ 4 billion against $ 3.73 billion.
At the time of writing, Pancakeswap is included in the top 3 decentralized exchanges:
On TVL Pancakeswap, the first in the BSC ecosystem and the fifth among all Defi platforms.
How to start using Pancakeswap?
To start working on the exchange, you need to connect Web3-wallet. To do this, the user must go to the official site of the site and click on the Connect icon. The window opens where you need to choose a wallet. The following options are available: Metamask, Trustwallet, Mathwallet, Tokenpocket, Walletconnect, Binance Chain Wallet, Safepal Wallet and Coin98 Wallet.
After choosing a wallet, for example, Metamask, another window will open where you need to confirm the authorization.
What opportunities does Pancakeswap provide?
Exchange. For the purchase and trade of tokens on the exchange, BNB requires. They can be bought immediately on Pancakeswap or Binance and then transferred to a wallet. Trade occurs in the Trade section in the Exchange tab.
The second version of Pancakeswap is available more than 1000 trading couples. When exchanging tokens, traders pay 0.25% from each transaction, of which 0.03% go to increase the fund, 0.05% are burned, and 0.17% are distributed between liquidity suppliers.
Liquidity. In the same section, you can become a liquidity supplier by receiving LP tokens. To do this, click Trade, and then Liquidity and Add Liquidity. After that, a window will appear where two assets should be selected to replenish the corresponding liquidity pool. But before doing this, it is better to study what Impermanent Loss is to realize potential risks.
Farms. LP tokens can be invested in one of the farms for interest income. To do this, go to the FarMS section and select a farm corresponding to your LP tokens in the Liquidity section. For example, in the case of the CAKE-BNB LP pool, select the CAKE-BNB farm. After that, the pharmacy will begin with a reward in the CAKE token. You can get it at any time by pressing the Harvest button.
Pools. In this section, you can invest CAKE tokens in the “syrup” pools and earn in this way on stakeing. The currency of the chosen pool will be a reward for staying, that is, if you invest in the Earn SPS pool, you will receive SPS. The award can be taken at any time by paying the transaction commission.
Prediction. This new option, which is in beta version. It allows you to earn at the prediction of the BNB/USDT course. In fact, this is an analogue of binary options with a round at 5 minutes. They are very risky, because predicting the movement of prices in such a short period is extremely difficult. Before you bet, carefully read the rules and instructions.
Lottery. There is also a lottery on the platform, which passes every six hours. To take part in it, you should go to the Lottery section and buy a ticket for $ 5. After that, you will receive a combination of six random numbers, each of which is in the range from 1 to 14, for example, “5-7-7-10-5-13”. To win, users must guess:
- All six numbers to win or divide 40% of the bank;
- The first five numbers to win or divide 20% of the bank;
- The first four numbers to win or divide 10% of the bank;
- The first three numbers to win or divide 6% of the bank;
- The first two numbers to win or divide 3% of the bank;
- The first number to win or divide 1% of the bank;
- The remaining 20% burn forever.
Pancakeswap lottery rules and conditions can be found in their FAQ.
Collectibles. This section contains all non -interchangeable tokens (NFT) released on Pancakeswap. They can be won in one of the draws, and then either change to Cake or leave in your collection. To take part in the NFT draw, you need to register in the corresponding section.
Team Battle. Users can unite and take part in team competitions to win CAKE, NFT and other prizes. To do this, go to the Teams section & Profile, and then into the Your Profile tab and create your own profile. On this page you need to indicate the nickname, choose an avatar and command. You need 1.5 CAKE to create a profile.
The essence of the competition is the trade in certain foreign currency pairs and the receipt of various achievements on the crypto -tank. Which team will hold more transactions in terms of trading and get more achievements, it will become the winner. The current rating of the teams is displayed in the Leaderboards tab. It is calculated by the total volume of trading and the achievements of the 500 best members of each team. Awards to participants are determined by the share of their transactions in the volume of trading teams.
IFO (Initial Farm Offerings). IFO is the primary sale of tokens of a new blockchain project, followed by listing on Pancakeswap. In fact, this is the same IEO (Initial Exchange Offering), only on a decentralized platform. They are also called IDO (Initial dex Offering). To buy new tokens, you need a profile on Pancakeswap and Cake-Bnb LP. You can learn more about iFo on the Pancakeswap website.
How safe is Pancakeswap?
The exchange has been an audit of Certik and integrated with all its protection tools: Security Oracle, Certikichield Deepsea and The Certika Virtual Machine. Certik audit results can be studied on this page. Also, the site was an audit of SLOWMIST security.
These checks allow you to understand that the service is not a bench and does not have obvious vulnerabilities, but they do not “Alternative Dimensions”. guarantee the safety of the platform, which proves the hacking of the Defi Protocol and the Pancakeswap lottery, which occurred after the audit of Certik. Therefore, be careful using any Defi application, including Pancakeswap.