While PancakeSwap is nowhere near Uniswap in terms of market share, PancakeSwap’s outstanding features were designed to attract new users and incentivize more trading activity. PancakeSwap’s pottery feature combines locked CAKE staking with lottery elements, offering a chance for users to win bigger yields on their CAKE deposit. The biggest upside is that even if you lose, you get back all your deposited CAKE tokens.

Staking

Thanks to its low fees, PancakeSwap temporarily flipped Uniswap in February 2022, becoming the world’s biggest DEX by daily trading volume. The reason why users started flocking to PancakeSwap, was the high gas fees on UniSwap — as UniSwap is among the top gas guzzlers on the Ethereum network. PancakeSwap also offers more advantageous fees than Ethereum-based Uniswap. A token swap on PancakeSwap costs 0.2% in trading fees — 0.17% of which is returned to liquidity providers as a reward, and 0.03% is sent to the PancakeSwap Treasury. For instance, if users deposed the CAKE-BNB trading pair, they will receive CAKE-BNB LP tokens, depending on the amount of CAKE-BNB they committed. The advantage of liquidity providing is that you can remove your funds and rewards at any time from these pools.

This is an important feature for DeFi enthusiasts since they can avoid the risk of censorship by using PancakeSwap. Similar to staking, users can simply access the Farms tab and select a liquidity pool based on their specific tokens. Yield farmers can earn anywhere from 2% to 137% APY on their investment. In case you’re not already a staker who has iCAKE, you’ll first have to stake some CAKE tokens to one free online course of the SYRUP pools, in exchange for iCAKE. The number of iCAKE you receive is based on the number of CAKE you staked in the fixed-term staking pool.

Other Notable Features

Users can enter “UP” positions if they believe prices will rise or “DOWN” positions for the contrary. PancakeSwap is a community-governed DeFi protocol, where CAKE functions as the project’s governance token. CAKE’s circulating supply is controlled by deflationary mechanisms, which aim to make the token deflationary, by burning more CAKE than the amount that is emitted. Hence, developers have a built-in burn mechanism for PancakeSwap products. According to PancakeSwap’s Tokenomics 2.0 litepaper, CAKE will reach its supply cap in approximately 3 years, with the current emission rate of 12.75 tokens/block, or 367,200 tokens/day.

1. Much like the Initial Coin Offering (ICO) model, it allows traders to invest in newly launched tokens through the power of yield farming.
2. By embracing zkSync’s Era cutting-edge technology, we can offer our users faster and more cost-efficient transactions, ensuring a seamless trading experience with reduced gas fees.
3. Prepare to unravel the complexities and unlock the potential of PancakeSwap as we guide you through its features, strategies, and tips to optimize your DeFi journey.
4. Users simply have to visit the Pools page and select a staking pool to lock up their assets.

Instead, users trade directly against a liquidity pool (more on this in our next heading). As a BNB-native protocol, PancakeSwap focuses on BEP-20 tokens — the token standard of the BNB chain. As a PancakeSwap user, you can how to buy on blockfi enhance your staking rewards even further if you hold CAKE tokens and participate as a staker. The extra APR boost adds an exciting incentive to make the most of your staking experience. PancakeSwap’s low fees, fast transactions, and features will likely cement it as one of the most popular decentralized exchanges in the DeFi space.

What Is Pancakeswap (CAKE)? Features, Tokenomics and Price Prediction (2022 Update)

Any CAKE holders can stake their tokens in the DEX’s SYRUP pools, in exchange to earn more tokens. PancakeSwap received funding from Binance in 2020, as part of their $100 million fund to connect DeFi and CeFi, aiming to support yield farming with major crypto assets on the Binance Smart Chain. Later that year, in November 2020, PancakeSwap received an additional $240,000 worth of liquidity support from Binance. Anyone holding CAKE can create proposals or vote on existing proposals on PancakeSwap’s native voting portal.

What Is ApeSwap: Deep Dive Into the One-Stop DeFi Hub

Prediction is PancakeSwap’s decentralized iteration of a prediction market. As with other prediction markets, users can bet on the outcome of future events, without any intermediaries. This deep dive aims to take a close look at PancakeSwap, its most notable features, and how it measures up is it profitable to be a white label payment processor to other decentralized crypto exchanges. Centralized crypto exchanges have played a big part in the mainstream adoption of cryptocurrency, making digital assets easily accessible for investors with fiat currency.

As we gear up for this next growth phase, we are also dedicated to enriching our existing product suite on chains like Polygon zkEVM and zkSync Era. We believe in constantly improving and refining our offerings, ensuring you have the best experience using our platform. In July, the most ingenious users of PancakeSwap sent us their memes and 10 lucky winners shared a $300 USDT prize pool.