PancakeSwap is a decentralized exchange on Binance Smart Chain, one of Ethereum’s top competitors. It was developed to facilitate the exchange of BEP-20 tokens (Binance Smart Chain Evolution Proposal), Binance’s token standard, meaning any token to be traded on PancakeSwap must be BEP-20 valid in order to be traded on the platform.
How does PancakeSwap work?
They use an Automated Market Maker (AMM) protocol, allowing the trading of digital assets without intermediaries and promoting liquidity. With this system, buyers don’t have to wait to be matched with sellers. Whenever someone wants to trade one token for another, they just deposit the token they have into the pool and withdraw the other token they wish to receive.
What is CAKE?
CAKE is a coin used in the Pancake platform. Users can earn them by trading or farming on the Pancake Swap. CAKE can be used for staking on syrup pools, for Airdrops, or for playing Lottery games. It’s a PancakeSwap‘s Governance Token.
Products on Pancakeswap:
Exchange – exchange of other cryptocurrencies, either the BEP-20 coin or the LP token.
Lending & borrowing – borrowing of BSC tokens and LP CAKE tokens is used as a discount.
The NFT Ecosystem – collection of cards in the system, which are tradable NFTs, and there will be a market for NFTs under CAKE Coin spending on PancakeSwap.
Syrup Pools – pool for people who have CAKE. Investors can bring CAKE into Pools to exchange rewards for other coins. On the Syrup Pools page, there will be information about various coins for further study, which has both Auto Compound and Manual Compound farms.
Pancake currently has 60 liquidity pools that allow pair deposits to farm CAKE. Rewards per Pools are based on the amount of coin pairs deposited. Most of them are tied to a single coin paired with BNB and have almost all stablecoin farms. However, the return APR ranges from 5% – 600%, and the main thing when choosing a farm is information that the farmer should study more from many channels because there is a chance of impermanent loss, especially currency pairs that have different prices.
Lottery game – gambling with Pancakes every 12 or 36 hours. When purchasing the lottery, everyone receives 6 random numbers. If the ticket matches the respective results, the prize is distributed according to the following proportion:
Win 6 numbers in sequence: share 40% of all prizes.
Win 5 numbers in sequence: share 20% of all prizes.
Win 4 numbers in sequence: share 10% of all prizes.
Win 3 numbers in sequence: share 5% of all prizes.
Win 2 numbers in sequence: share 3% of all prizes.
Win 1 numbers in sequence: share 2% of all prizes.
Burn 20% of all rewards.
And so on, If you are interested, you can learn more at Pancakeswap’s website. (https://docs.pancakeswap.finance)
Due to the increasing of transaction fee of Pancakeswap V2, from 0.2% to 0.25%. The 0.05% added will be used for buy CAKE in the market and burn it to reduce supply. It can be seen that the role of CAKE will be used more, and the amount of CAKE will be burned further.
( Source: https://coinmarketcap.com/currencies/pancakeswap/)
From the graph, you will see that the live PancakeSwap price today is $4.24 USD with a 24-hour trading volume of $32,863,714 USD. We update our CAKE to USD price in real-time. PancakeSwap is up 1.66% in the last 24 hours.
CAKE’s current market cap is $711,121,098 or about 24 billion baht, ranked 67th on the Coingecko website and has a circulating supply of 170,012,727 CAKE out of a total of 370,361,116 CAKE.
This is Not Financial Advice
This article is a part of the class ” 751471 Economics of Decentralized Finance (DeFi) “
supervised by Asst. Prof. Napon Hongsakulvasu
Faculty of Economics, Chiang Mai University
This article was written by
Kittitus thongprasert 641615008
Napassorn Onphan 621615037
Montita Kongwatmai 621615055