Omakasea DeFi Lesson 3- Pancake Swap

By vanassen.eth | understandingadoption | 20 Jan 2023


   Pancake Swap was the first DEX I used; although I don’t mess with it much anymore ( vacated BSC after my TrustWallet was drained), I was pleasantly surprised to that the DEX now supports the Ethereum Chain!

   Pancake Swap has had it’s days of leading volume among DEXs, but as of the past 7 days, according to DeFi Llama, Pancake Swap comes in third for 7 day volume; just under UniSwap and Curve, at 20b for the week, and almost 2b in the last 24 hours. 

   Pancake Swap was the original DEX for the BSC; essentially a UniSwap option for those using the Binance chain. And, as stated earlier ☝️, Pancake Swap now supports Ethereum. They have also recently opened liquidity pools for Aptos projects.

  Ensure you’re visiting  pancakeswap.finance, and use MetaMask to connect to either BSC or the Ethereum Network. There are quite a few language options to use Pancake Swap.

  On the dashboard you’ll see the current price of Pancake Swap Token (CAKE), which is the reward token that Pancake Swap uses to reward liquidity providers. 
  Swapping happens much like other DEXs. 4c918f8b98ac8042da40e32e9ab48127b770f2a77a8063514b27271f1bb9a4e4.pngI’m accessing the Ethereum Chain for example because I don’t have one cent in my BSC wallet- however I highly recommend for the reading degens to explore the Binance Smart Chain if they have not already. Gas is cheaper than Ethereum, and there are tons of liquidity/farming opportunities.

  As seen in the image, Pancake Swap provides a solid range of decentralized activities- swapping, liquidity providing, perpetual trades, and chain bridging.

  Swapping

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  Farming
   As we learned in earlier DeFi lessons, in order to yield farm, we need to first create LP tokens by providing liquidity to pools. and farmed. Pancake Swap makes it easy to generate LP tokens.  Click the farm of your choice then create the LPs as depicted below. 
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 Once the LP tokens have been generated they can be added to the farms on Pancake Swap. The same goes for providing liquidity on the BSC side, however, there are additional options of staking pools on the Binance chain, in which users can stake CAKE and earn other tokens. 
 To manage your liquidity, under the Trade tab, click Liquidity. This will essentially take you to your dashboard where you can unpair or repair liquidity pairs.

1b09ef98ef08232052091041727e93c01922f1034fead1862ec6efc7041af42c.png
 Remember, rewards are paid in CAKE or another token which is explicitly stated. What that means is that added risk/ reward is applied to this notion of investing- if the price of CAKE tanks, your APR is eaten into, or possibly even erased. If the price of CAKE goes up, your APR is boosted. There’s only three options of which way the price could go. Win, lose, or stay the same. 
  One unique function of Pancake Swap is their lottery and prediction games. Just click the Win tab.

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Last but not least, Pancake Swap has its own built in NFT marketplace. Click the NFT tab- and explore the overview and specifics of collections, and recent activity. 
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Consider buying a PokeGan NFT.

  You'll gain so much more than the basic outlines here. 

  Tokengated lessons provided by Omakasea. 

  Follow me on Lens and Twitter.

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vanassen.eth
vanassen.eth

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