Cryptocurrencies have changed and altered the world along with crypto variants that opened doors to numerous possibilities. Speaking of which, one of the things we can think of is the cryptocurrency exchanges.
The exchange platforms have been bridging the gap between digital finances and our modern-day expectations for earning. One of these platforms is Binance (with its own token) and today, in this read, we’ll be walking you through an information guide to a Binance-based exchange- PancakeSwap.
It is a Decentralized Exchange (DEX) that offers token swaps and its primary function and is compatible with BEP-20. Additional features include providing liquidity and encouraging users to engage on the platform with yield farming.
You should know that this platform is exclusively created for making the user experience efficient and providing a wide variety in the liquidity pool. Each of the pools is considered to be a tradable market for asset-pairs and compared to other Ethereum counterparts; all the transactions are way cheaper.
Let us take you on a stroll through the exclusively procured details on this Decentralized Exchange inclusive of what users can do on the platform, data on using its in-house token (CAKE), steps to using the service, steps for adding to and removing from the liquidity pool and some information on the fee that is pre-determined. And don’t worry, all of it would simply be a “CAKE-walk”.
What are the things to do on this Binance-based DEX?
As mentioned above, this is an exchange platform and therefore grants you access to trade in BEP20 tokens and have the authority to earn in crypto via offering liquidity and staking the PanCakeSwap’s in-house token.
Moving on, this section of the read can help you understand the things that you can do on the exchange:
- Make trade transactions with BEP20 tokens
- Earn exciting shares for adding to the liquidity pools
- Stake the liquidity tokens and acquire CAKE
- Choose “CAKE-for-CAKE” stacking
- Stake in CAKE to benefit from other project tokens
Understand the usage of the exclusive CAKE token
As you know from above, the CAKE token is PancakeSwap’s native token that is known to cater to the purpose of benefiting users with exciting rewards and incentives. But, the primary function that CAKe has on the network is known to be a governance token.
Pancake Swap has adopted the model for community governance for achieving the purpose of eliminating the need to rely on centralized authority. This provides users with voting rights if they own CAKE tokens at the time.
And to make it even more interesting, owning CAKE and voting for the community governance approach usually gets related to some changes in the fees, upgrades in the set protocols, and the like. Also, you can head to Binance, KuCoin, VCC Exchange, and others to buy CAKE, if not directly through the PancakeSwap decentralized exchange.
Follow through the process for using Pancake Swap service
This part of the read has been equipped with the explicit steps that you’d have to undergo to make proper use of this exclusive Defi application:
- Launch the service application.
- Connect the app to your in-use wallet,
- Ensure there’s BNB in your wallet for transactions.
- Go into the drop-down menu.
- Decide on the tokens you want to swap.
- Put in the amount for the token swap.
- And then, head to hit “Swap” for initiation.
- Get a preview of the transaction and confirm it.
Procedural steps for adding liquidity to PancakeSwap
This part of the read has been focused on helping you with the steps you’d have to undergo to add liquidity to the application pool:
- In the app, look and get into the “Liquidity” tab.
- Review the best alternatives of pool pairs on the “Farm”.
- Post ensuring the best choice, go on and hit “Add Liquidity”.
Note: You should keep in mind that for CAKE-BNB, the reward multiplier is at 40X and is said to be currently the highest.
Steps involved in removing liquidity from Pancake Swap
Here, in this part of the read, we’ll be walking you through the steps that you’d have to undergo to remove liquidity from the app pool:
- Begin with connecting your wallet to the platform and hit on the “Liquidity” link in “Trade”.
- Go ahead and select the liquidity that has been previously added to the “Your Liquidity” section of the PancakeSwap liquidity Page.
- Once you’ve selected the pair you added, you can hit on the “Remove” option key to exclude it from the liquidity pool.
Get to know the PancakeSwap fees levied on exchanges
Just like any other decentralized exchange portal (AMMs), Pancake Swap offers LP tokens to people who provide liquidity to the pool along with the opportunity to earn some share of the entire trading fees.
The trading fee levied on transactions is 0.25% or 0.17% is navigated to the liquidity providers, 0.3% is headed to the service’s Treasury, and 0.5% of the fee goes in for CAKE buyback and burn. This would mean that trading in BEP20 tokens would require you to pay a total fee of 0.25%.
The detailed read above has been carefully crafted to introduce you to one of the recent additions to the cryptocurrency community- the Pancake Swap. It soon gained a lot of attention and acquired a huge user base to serve with finesse.
It can easily be described as one of the newest AMM or a Decentralized Exchange that has been ideated, created and launched to grant users the authority to exchange crypto tokens, deliver liquidity and earn, along with several ways to engage in modern-day crypto farming.
Reading through the information masterpiece above, you’ve understood the basic concept behind the service, what the service offers, the steps to follow for use, the steps to trade on it, the steps to add and remove liquidity from its pool, and some details on the levied fees.