What is PancakeSwap?
PancakeSwap is a DEX (Decentralized EXchange) based on Binance Smart Chain (BSC), launched by anonymous developers, it looks a bit like Ethereum's SushiSwap (governance and ability to grow liquidity provider tokens), but with other features that allow you to earn rewards.
2020 was the year of decentralized finance (DEFI) where most of the projects focused on the Ethereum blockchain where the famous Uniswap, Sushiswap and many other DEFI platforms saw the light.
How does PancakeSwap work?
The PancakeSwap exchange uses an Automatic Market Maker (AMM) model. that is, it allows to exchange digital assets on the platform from pools of liquidity offered by users on certain pairs of tokens.
Users are encouraged to deposit their BEP-20 tokens in pools as they will receive a portion of the trading fees paid by those who use the exchange in return. Attestation of participation in an exchange pool is certified by the platform by a liquidity provider token (or LP) which can be redeemed at any time
How to make money with PancakeSwap?
In addition to using PancakeSwap as an exchange you can also farm its governance token: CAKE.
On the farm, you can deposit your LP tokens, locking them in a process that rewards you with CAKE the platform's native token. Here are some of the main LP tokens you can deposit:
CAKE - BNB LP
BUSD - BNB LP
BETH - ETH LP
USDT - BUSD LP
USDC - BUSD LP
DAI - BUSD LP
LINK - BUSD LP
TWT - BNB LP
But the rewards don't stop there! You can earn even more by placing your CAKE in the SYRUP pools.
So you deposited some funds to receive LP Tokens and used them to grow CAKE. From there, you can wager your CAKE and earn more tokens through special staking pools.
The biggest reserve of SYRUPS is simply for CAKE, where you can stake your CAKE to earn even more CAKE! But there are many more tokens you can earn by wagering CAKE, so be sure to keep an eye on the SYRUP pool page.
How to unlock and use the wallet on PancakeSwap.finance?
Here are several options to unlock the PancakeSwap wallet: MetaMask, Trust Wallet, WalletConnect, Binance Chain Wallet, personally I prefer Trust Wallet. It is important to know that to interact with the smart contract, if you want to invest on the platform, have BNB tokens in BEP-20 format with which you pay the gas fees. The gas fees on BSC are much lower than those paid on decentralized finance platforms that run on the Ethereum protocol (ERC 20)
Warning! Before investing in any DEFI platform, find out about the risks involved, especially the impermanent loss
My Binance ref link https://www.binance.com/en/register?ref=QZHRIPXJ
Disclaimer: This article reflects its author’s opinion only and is not financial advice. We take no responsibility for the results of any trader’s decision or action.