PancakeSwap is a decentralized exchange that allows you to trade BEP20 tokens on Binance Smart Chain. PancakeSwap employs an automated market maker (AMM) concept in which users trade against a liquidity pools. These pools are funded by user contributions. They deposit them into the pool in exchange for liquidity provider (or LP) tokens. They can regain their share as well as a fraction of the trading costs by using those tokens.

The LP tokens are known as FLIP tokens. PancakeSwap also allows users to farm CAKE and SYRUP tokens. Users may put LP tokens on the farm, locking them up in a process that rewards them with CAKE. Users can stake CAKE tokens to earn SYRUP, which will serve additional purposes as governance tokens (and as tickets in a lotteries).

History

PancakeSwap was created in September 2020 by a group of unknown developers. PancakeSwap was unique at the time of introduction since it was based on Binance Smart Chain (BSC), which allows faster and cheaper transactions than Ethereum. At the time of PancakeSwap's introduction, Ethereum was plagued by pricey and delayed transactions as the DeFi mainstream moment in 2020 caused tremendous transaction demand. At the time, almost all DeFi apps ran on Ethereum.

In addition to lower network fees provided by BSC, PancakeSwap offered a lower swap charge of 0.2%, compared to the industry standard of 0.3%. In February 2021, it overtook AMM pioneer and Ethereum darling Uniswap to become one of the industry's leading decentralized exchanges by trade volume. PancakeSwap's total value locked (TVL) increased dramatically in 2021 as a result of lower network fees, great branding, and the introduction of new and creative services. PancakeSwap intends to broaden its scope to include prediction markets, lending and borrowing, and margin trading.

How does it work

PancakeSwap is a Binance Smart Chain token. On 1st of September 2020, the Binance Smart Chain (BSC) debuted in the market. This fourth generation blockchain was created to work in tandem with Binance Chain. BSC is significantly more sophisticated than their previous chain, which is impressive. For example, the platform enables speedier and less expensive transactions. The network has extremely high performance and can generate a block every 3 seconds. One of the primary objectives of the BSC was to enable the implementation of smart contracts and the BNB staking mechanism. Binance's development team designed the BEP-20 token standard to complete this objective. BEP-20 is Binance's version of the extremely popular ERC-20 token standard. BEP-20 tokens, on the other hand, may be exchanged for much less on the BSC and provide users some unique chances do not present on their Ethereum equivalents.

PancakeSwap plays an important position in the industry right now. The platform contributes to the resolution of numerous market challenges. PancakeSwap has established itself as a potential competitor to the current DeFi and DEX leader, Uniswap, because to its creative strategy and devotion to security.

Total supply and circulation

CAKE has a total supply of 326,160,699 CAKE coins and at the time of writing, there are 167,763,666 coins in circulation. Maximum supply is set to 750,000,000 tokens.