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In the latest wave of DeFi protocols, we have seen many sites that allow users to spend their funds in return for protocol tokens.
The bulk of this operation has been based on the blockchain Ethereum. As one of the first blockchains enabling smart contracts.
In this Article, We will take a look at PancakeSwap, a recently introduced Binance Smart Chain-based decentralized exchange
Table of contents
What is PancakeSwap Exchange?
PancakeSwap is a decentralized exchange designed for exchanging BEP2 tokens. However, it operates on the Binance Smart Chain (BSC), instead of operating on the sluggish and costly Ethereum network.
PancakeSwap is a new DeFi protocol. Under the Binance Smart Chain (BSC), it is a crypto-currency network for direct trading. Many food-based farming collaborators in the crypto industry have been added by it. Through acting as a liquidity provider under the staking mechanism, Pancake helps group administration and investors to receive tokens.
The trading fee is 0.2 % on PancakeSwap. This comprises 0.17% that goes to the liquidity providers and 0.03% that goes to the PancakeSwap Treasury.
PancakeSwap Supported wallets
MetaMask, TrustWallet, TokenPocket, and WalletConnect are being supported by PancakeSwap. However, to make transactions on PancakeSwap using MetaMask, you need to set it up for Binance Smart Chain.
How to Exchange Tokens?
Step 1: Access your DApp browser and then tap on PancakeSwap on the New DApps section
Step 2: Select CAKE tokens and input the amount of tokens you are willing to spend or how much you’d like to receive. Once you’re ready, tap on Swap.
Step 3: Confirm your transaction, and wait for the network to process it.
How to Provide Liquidity and earn CAKE?
Step 1: Tap on Pool to start supplying tokens to the PancakeSwap platform. To continue, tap on Add Liquidity.
Step 2: Choose CAKE, and then input the amount that you are depositing.
Step 3: Then scroll down and tap on Approve CAKE. Confirm the transaction in order to proceed.
Step 4: Tap on Supply and then Confirm. Then, the app will ask you again to confirm. Press Send to deposit your tokens to the platform.
Step 5: You will see a confirmation once the tokens have been supplied.
Step 6: You will gain Liquidity Provider (LP) tokens which gives you a share of the fees that the Pancake Swap exchange earns.
How to Stake LP Tokens?
Step 1: Tap on PancakeSwap on the upper left to go to the Home Menu. Next, tap on Menu to show the list of options available.
Step 2: Select Farm to access the PancakeSwap “Kitchen” and select the corresponding LP tokens you have supplied
Step 3: Choose the CAKE-BNB FLIP Farm. Approve it first in order to proceed.
Step 4: Press on the + sign to input the amount of LP tokens you want to Stake. Confirm the transaction. You will immediately earn CAKE tokens.
How to Stake CAKE Tokens?
Step 1: Go to the Home Menu, tap on the Menu button again. Then, tap on “Staking”.
Step 2: Scroll down to Approve staking of the CAKE tokens
Step 3: Press the + sign to input the number of CAKE tokens you want to stake and Confirm it.
Step 4: Your CAKE tokens will be staked and you get an equivalent amount of SYRUP tokens. The best part, you will earn some CAKE tokens. Harvest your CAKE at any time and stake it again to gain more tokens.
Is PancakeSwap safe?
It has not been audited in the case of PancakeSwap. Even for audited and extremely respectable projects, depositing funds into a smart contract still carries the possibility of glitches.
While the dangers exist, it is very clear that for its group members, PancakeSwap strives to be open and satisfying. With processes in place, an ongoing investigation, and incorporation of further wallets, PancakeSwap seems to be primed for further adoption.