PancakeSwap - Explanation, Advantages, and How to Buy and Sell
Netgenz - Stock | Lately, many types of crypto assets use the food name as the name of the token or base used. PancakeSwap is a type of crypto asset that bears the name food. Generally, naming crypto assets using food names occurs in Defi or decentralized finance. However, don't get me wrong, PancakeSwap is one of the most popular DEX platforms in the crypto asset world. To find out more about what PancakeSwap is, the kinds of benefits it offers, and the working steps used, read the following review.
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What is PancakeSwap?
PancakeSwap is a decentralized exchange (DEX) powered by Binance Smart Chain (BSC), using an automated market maker (AMM) mode to fulfill orders. That way, PancakeSwap replaces the order book with a liquidity pool.
Liquidity providers (LP) communicate with the pool and accept LP tokens as their representatives in the pool. This token is a key to removing their side from the pool. Since the base is driven using the BSC, the token is compliant with the BEP-20 token standard. In addition, LP tokens have various other types which are controlled by tokens placed in the pool.
Not only that, PancakeSwap is part of the Defi service that allows crypto asset traders to carry out business transactions using tokens without a mediator which takes a significant discount on funds. PancakeSwap is the largest DEX owned by Binance Smart Chain, although there are other DEXs such as Uniswap which have a higher average trading volume.
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Know-How PackeSwap Works
As previously explained, the token transition working step on DEX PancakeSwap occurs via the liquidity pool between token pairs. Users can replace one type of token with another without the need for a mediator, while other users who stake their tokens in the liquidity pool will get a share of the rewards created by their staking.
CAKE, PancakeSwap's Original Token
PancakeSwap has its own token called CAKE. CAKE is PancakeSwap's native token, which doubles as a governance token, and provides farming and staking services. Users can earn CAKE through liquidity, staking, or buying through an exchange.
CAKE tokens issued to liquidity providers can be traded on the open crypto-asset market, just like any other coin. In addition, PancakeSwap has another token called SYRUP, which allows its holders to receive 40% of CAKE emissions. SYRUP is not planned to be marketed, because it is only made to release staked CAKE.
PancakeSwap allows you to sell or buy some coins to the syrup pool. which rewards the wearer. For example, you can stake some CAKE, and earn more CAKE simply by leaving it in the syrup pool for a certain period of time. There is even an auto-stake option where you want to re-trade your CAKE tokens at least once per hour so that the rewards you will receive will increase.
How Many CAKEs Are Distributed Currently?
The adoption rate of CAKE tokens has recently been increasing. As of March 2021, based on information obtained from CoinMarketCap, the number of CAKE tokens that have spread in the crypto asset trading market is 125,984,870 CAKE. While the price of 1 PancakeSwap coin to IDR when this article was recorded was IDR 216,246.
PancakeSwap's Variety of Benefits
As one of the well-known DEX bases, PancakeSwap of course has various advantages that can attract users. The following are some of the advantages offered by PancakeSwap.
High Adoption Rate
The presence of PancakeSwap provokes Defi to have its own stage in the crypto world by introducing the role of AMM which has never been successfully driven by other projects before. This of course can increase the use of PancakeSwap as a DEX and a higher level of CAKE adoption.
Not only that, the high adoption rate of CAKE is due to the increasing adoption of the Binance Smart Chain and the CAKE token. Just as is common in the crypto space, the price of crypto assets can respond to adoption or at least the wishes of the user. As of now, there seems to be some desire for CAKE tokens on the crypto asset trading market.
Minimum Transaction Fee
By using a scalable network such as BSC, PancakeSwap can offer lower business transaction fees. In BSC, the business transaction fees charged are very small when compared to the business transaction fees charged on other blockchains.
In addition to saving users from high business transaction costs, BSC provides business transaction facilities that can be faster. The two features can certainly make it easier for users when doing business transactions with PancakeSwap.
No Intermediary Party
Just like what has been found if a decentralized exchange does not use a mediator and let other users reap the results immediately. So, if you want to secure some of your tokens for some time, the rewards you will get are sure to be substantial, especially with multiple liquidity pools and staking options.
Like other DEXs, chances are that people who are just trying to get into crypto-asset trading will find it difficult to navigate PancakeSwap and understand its various features. Learning to use DEX will definitely take some time, but it's worth the number of profit opportunities that can be achieved.
How to Buy and Sell PancakeSwap on Zipmex
The following are steps to buy and sell PancakeSwap on Zipmex Web that you need to know:
- First, if you already have a Zipmex account, you can log in first.
- If you have, go to the "Market" side to start the process of selling and buying assets.
- Specify your expected currency pair. For example, if you want to buy PancakeSwap using USDT then you can specify PancakeSwap/USDT).
- Define marketing and purchasing systems; market order or limit order. Then, you can enter the asset amount and nominal.
- Check your business transaction details again. When it is the same, click "Buy."
- Your business transaction process is a success! Check assets that have been purchased and marketed in the Trade Wallet section.