Hello Publish0x community and welcome back in this new article of my “Easy & Short Cryptocurrencies Made Accessible” area.
With this article we are going to introduce the 20th cryptocurrency of this section with the 42nd “E&S” article.
Today we will talk about: PancakeSwap (CAKE)!
So, get comfortable and get ready to enjoy a delicious and sweet breakfast!
Let's start by talking about what PancakeSwap is.
PancakeSwap is a new decentralized exchange (DEX) that’s been created on the Binance Smart Chain (BSC). The automated market maker (AMM) offers users several innovative ways to create income streams from their cryptocurrencies. Users can swap BEP-20 tokens on PancakeSwap quickly and safely.
PancakeSwap works like Uniswap because of the many similarities between the two transactions.
I’ve already talked about Uniswap in two articles of the “E&S” section. If you missed these articles, you can recover them here:
The exchange is the largest decentralized application on the Binance Smart Chain. Many people think that PancakeSwap is futuristic and can provide many opportunities. The anonymous team that developed PancakeSwap's AMM Platform loves simplicity, straightforwardness and lots of facts topped with few words but lots of images of syrupy pancakes and gluttonous rabbits.
The spirit of CAKE, a young pilot platform launched at the end of September and developed on Binance Smart Chain in the development project funded by CZ Zhao, as the standard bearer of a DeFi new wave, is encapsulated in the formula: gamification + speed + low fees + 3-digit APY - continuous movement.
In the AMM a user loans their digital assets to liquidity pools and in return they receive liquidity tokens that they can then stake to earn more digital assets.
Below an example of possible yield from the PancakeSwap site:
The tokenomics adopted on the platform that has reached the top of the DeFi rankings for BSC and aims to surpass in time projects such as Uniswap and Sushiswap, allows a kind of miraculous effect of "balance over chaos", represented by the token "CAKE" that has become almost a cult of food farming in recent months. Without a hard cap, CAKE has a potentially infinite supply, but all the game systems proposed within the platform contribute to the "burning" mechanism and rebalance the emissions of 40 CAKE every 3 seconds by redistributing them in the farms, in the pools for simple staking, or in the lottery or even in the Initial Farm Offering.
And it is only thanks to this complex system and the lack of initial hard-cap that CAKE can guarantee three-figure APRs that, combined with compounding (reinvestment of the product) can quickly achieve remarkable results for those seeking maximum yield from a stake.
Once you understand the situation of each area of the website, it is not difficult to use PancakeSwap. When you visit the website for the first time, it may be difficult to understand what is going on, but this is because many features remain locked until you connect to the wallet and unlock it. Once the problem is resolved, you will see a lot of additional information that was lost before you connected the unlocked wallet to the website. You will see all the different returns provided by various farms and mining pools, and you will have the opportunity to increase liquidity and stake your tokens.
After briefly introducing what PancakeSwap is and what is the CAKE token, I invite you to follow me so you don't miss the second part of the article that will be released next Sunday.
We'll go more specifically into PancakeSwap benefits, how to farm and others features of this project!