All About PancakeSwap Finance
PancakeSwap Finance has a very strong user base that uses the PancakeSwap token known as CAKE throughout the well-established ecosystem dominating the Binance Smart Chain.
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Video credit: Hone Crypto
What Is PancakeSwap?
The company PancakeSwap Finance might sound a bit silly, but they are the most known and used company in decentralized finance.
PancakeSwap has a cryptocurrency token and a host of utilities that make up their DeFi ecosystem.
They are so well known, in fact, that they have the most used dApp and user base in crypto to this day. So many people use PancakeSwap that it has become to go-to place to lock liquidity for other token projects on the Binance Smart Chain.
Chances are, if you've traded any altcoins on BSC then you have likely sent tokens through the liquidity pools on PancakeSwap.
Decentralized Exchange (DEX)
The most notable product of PancakeSwap Finance is their swap DEX (decentralized exchange), the most used decentralized application of all time.
CAKE The PancakeSwap Token
CAKE is the utility token by PancakeSwap Finance which powers their DeFi ecosystem.
The token has many use cases within the PancakeSwap ecosystem they have created:
- Stake CAKE to earn free tokens via Syrup Pools
- Use CAKE in Yield Farms to earn even more tokens
- CAKE can be used to participate in the PancakeSwap Lottery
- Mint NFTs from your profile
- Participate in IFO Token Sales
- Ability to vote on proposals within the PancakeSwap ecosystem
Staking With PancakeSwap Syrup Pools
With an easy-to-use front end, staking tokens with Syrup Pools offer "High APR, low risk."
Easily stake your CAKE tokens to earn your choice of supported altcoin cryptocurrencies as your earnings for staking.
To stake, you must send your crypto to be locked up. When you do this they are no longer in your wallet, PancakeSwap has grown its staking platform to such a large size from its good track record and reputation.
Staking with PancakeSwap has become popularized by their users and many other crypto projects have adopted staking as a feature for their token.
Learn more about staking so you know how to keep your crypto safe.
For those who wish to self-custody their cryptocurrencies, CPTLC Cryptolic offers in-wallet staking so holders may grow their bags without having their crypto leave their wallets.
Yield Farming With PancakeSwap
With yield farms on PancakeSwap, users pair two tokens to create an LP token which can be used in staking for yield for being a liquidity provider.
Liquidity providers beware, it is important to learn about impermanent loss before creating a liquidity pair token.
Impermanent Loss
Impermanent loss is the gains a trader missed out on by holding LP (liquidity) tokens as opposed to holding the paired tokens individually.
In short, if you pair two stablecoins the risk of impermanent loss is very small. More volatile token pairs have a much greater chance to affect the trader negatively.
