PancakeSwap (CAKE) is a DEX that allows you to exchange BEP20 tokens on the Binance Smart Chain. PancakeSwap uses an Automated Market Maker model, where users trade through a liquidity pool. Users who deposit funds into a pool receive in exchange liquidity provider tokens. They can use these to claim their stake, as well as a portion of the trading fees. Liquidity tokens are called FLIP tokens. PancakeSwap also allows its users to yield farm CAKE and SYRUP tokens.
PancakeSwap (CAKE) is the token used to govern the DeFi platform PancakeSwap. This platform is based on the Binance Smart Chain (BSC) and the CAKE is therefore a BEP-20 token –the standard for the Binance Smart Chain (the equivalent of ERC-20 on Ethereum, ETH).
The goal of the project is simple: to become the Uniswap of DeFi on the Binance Smart Chain. The project was launched at the end of 2020 and has since established itself as the number one DEX in Binance’s DeFi ecosystem.
The team behind the project has decided to remain anonymous, but is very active. PancakeSwap offers many features with advanced cash pair management, staking of various cryptocurrenciess (including CAKE) and the ever-popular lottery! Today, CAKE has become indispensable to any investor wishing to carry out DeFi transactions on the Binance Smart Chain.
It is for this reason that the project has established itself as a go-to and has experienced strong growth over the last few months.
CAKE is the governance token of the PancakeSwap platform, the equivalent of Uniswap in the Binance Smart Chain ecosystem.
This platform allows you to do many things, and includes:
Token swap is the primary feature of the PancakeSwap project. Just like Uniswap, it allows you to exchange any token on the Binance Smart Chain for another. This is the foundation of a DEX (decentralised exchange).
It is also possible to stake tokens directly on PancakeSwap. Staking is necessary for the PoS (Proof of Stake) consensus mechanism of a given token. In addition, this allows the user to generate passive income.
A cash pool is a service exchange. For a DEX to truly live up to its name, it needs to have cash to provide the exchanges requested by different users. In order to ensure that they have the necessary liquidity, DEXs encourage users to make tokens available for rewards, especially CAKE tokens.
Finally, CAKE allows you to participate in a lottery that takes place regularly on the PancakeSwap platform. Obviously, the lottery is not a common investment mechanism, and you have to be careful with it.
In addition to these features, the PancakeSwap platform recently announced that it is developing many new features including futures contract management. What is certain is that in 2021, PancakeSwap will continue to develop with CAKE at the centre of this ecosystem.
CAKE can be purchased directly obtained on PancakeSwap, but is not available on Coinbase or Kraken. However, we recommend buying CAKE on Binance. If you’ve never used this platform, be sure to read our guides on it. You can also skip this step and head straight over to the site to create a Binance account and get discounts on your transaction fees.
On Binance, you can buy CAKE with BTC, USDT, BUSD or BNB. Once you’ve found the desired pair (e.g. CAKE / BTC), available in the Markets tab at the bottom of your app, click BUY. You can then choose the price at which you want to buy CAKE and the total amount you want to spend in the cryptocurrency you have chosen (in this case, the BTC). Once all this has been set, click Buy CAKE. Your order has been submitted, if you have chosen a market order, it will be executed immediately, if you have chosen a limit order, your order will only be executed once the chosen price has been reached.
The PancakeSwap project and its token, CAKE, have nothing left to prove in the crypto space. The success of the project is due in particular to the repeated failures of Ethereum (ETH) on the management of its costs.
PancakeSwap offers a quick and inexpensive alternative to DeFi with the Binance Smart Chain. The project is supported by Binance, which reassures users and investors. After soaring at the beginning of 2021, the token is currently experiencing a stabilisation of its price.
In view of the upcoming developments, it will be interesting to follow what the project does! While we don’t provide investment advice, we’ll definitely continue to cover the news surrounding PancakeSwap and CAKE!
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