What is a Pancakeswap?

 Launched on 20 September 2020, PancakeSwap is a BSC DEX using a permissionless liquidity pool that is fully automated and run by algorithms. The use of this pool start algorithm makes PancakeSwap an automated market maker.

Pancakes at a glance
Delicious DeFi on PancakeSwap. Image via Pancakeswap.finance

Why is it called PancakeSwap? Well, it just follows the trend of decentralized finance that uses the food symbol. First there was SushiSwap, then BakerySwap and now we have PancakeSwap. There are also many other food-themed projects and tokens in the DeFi area.

As for PancakeSwap, they use the delicious CAKE token which is the BSC BEP-20 token and the equally delicious SYRUP checker. PancakeSwap offers fast transactions and lower fees than DeFi projects based on Ethereum. As the number one platform, AMM on BSC PancakeSwap can be seen in the same league as ERC-20 based AMMs such as SushiSwap and Uniswap.

If you have never used AMM before, it is an exchange that allows users to trade digital assets against liquidity pools and reap the benefits. This is more of a dividend or bond than a traditional exchange where the order book equals buyers and sellers and profits are only earned by selling your assets. In AMM, users borrow their digital assets in a liquidity pool and in return receive liquidity tokens which they can then stake for more digital assets.

What can you do in PancakeSwap?

As you might have guessed based on the explanation above, PancakeSwap allows users to exchange BEP-20 tokens. It also allows them to use their cryptocurrency to provide liquidity to exchange pools and thus earn additional tokens. It is also possible to bet on PancakeSwap tokens and use this method to win more tokens.

Updates on PancakeSwap

Since launching in 2020, the platform has gone through several upgrades, each with the addition of new products and features. PancakeSwap Exchange has been updated to V2 in April 2021, which gives developers more freedom to improve the functionality of the platform in the future – such as automatic mixing in syrup batches and adding reference programs. This was followed by a change in the fee structure (from 0.2% to 0.25%), with 0.05% used to buy CAKE on the general market before being burned to add another deflationary mechanism to the symbol .

The chef behind PancakeSwap login doesn’t currently support a specific roadmap, but there is a public to-do list (no specific date). Top items on the list include adding futures betting products, lending and borrowing features, and allowing users to earn NFT by completing and leveling tasks.