PancakeSwap (CAKE) 2021: One of the Best Decentralized Finance Projects
Yield farming looks like one of the hottest trends in crypto today. It brought billions of dollars to the DeFi market and created a new way of generating income for cryptocurrency holders.
Let's find out why PancakeSwap has become one of the best decentralized finance projects and most popular DeFi protocols despite only launching last September.
What is DeFi?
Decentralized Finance, or "DeFi" is the term used to describe a blockchain-based decentralized financial application network. DeFi protocols are open source. In other words, any user can use them to make new variations and combinations.
More recently, DeFi was considered a somewhat risky way, and of course, the risks still exist. However, it gained good popularity in 2020 and 2021. The technical barrier to entry has been lowered for DeFi, but the industry has become an essential part of the future of global finance.
DeFi includes several subcategories:
- Decentralized Exchanges (DEX);
- Asset Management;
- Lending protocols and profitability optimization.
PancakeSwap: How a Decentralized Exchange Works
PancakeSwap is a relatively new decentralized exchange (DEX) built on the Binance Smart Chain (BSC) and launched September 20, 2020. The Automated Market Maker (AMM) offers users the ability to exchange tokens, provide liquidity through farming, and receive a commission in return. The leading developers of PancakeSwap are, as of now, still anonymous.
CAKE Token Overview
PancakeSwap uses the fancy CAKE token (BEP-20 token on BSC) and the SYRUP pools with the same cool name. This platform boasts fast transactions and lower fees than, for example, DeFi projects created on Ethereum.
It allows members to trade BEP-20 tokens, provide exchange liquidity, and earn commissions. PancakeSwap gives you the ability to bet on LP tokens (liquidity providers) to make CAKE, place CAKE bets to earn more CAKE, and place such bets to acquire tokens from other projects.
Users can also stake their tokens to receive rewards by depositing liquidity provider tokens and closing them. Tokens can be withdrawn from bets with zero hold times. Moreover, CAKE allows users to invest and increase profits in the future, but it comes with risks.
Every person can easily use CAKE to participate in the lottery on PancakeSwap. Each lottery lasts about 6 hours. One ticket costs 10 CAKE tokens and contains a random combination of four numbers from 1 to 14; for example, 8-5-4-12. To win the jackpot, which is 50% of the total lottery pool, the numbers on the ticket should match all four digits on the winning ticket.
Users can also win non-fungible tokens that can be exchanged for CAKE or stored in a wallet.
PancakeSwap Roadmap (Goals)
Roadmap or don't call it that! The platform creators prefer to call this section "To-Do List." It contains various goals that the team has achieved and many other exciting developments that combine NFT with lending, creation of decentralized exchange, customization of the user interface, and other still-secret ideas.
PancakeSwap has unique advantages that help the platform stand out from the growing competition among DEX.
PancakeSwap provides excellent access to new tokens. Users can transfer USDT, BTC, BUSD, and ETH from the ETH chain to the BSC chain using the deposit functions. In this way, you gain access to all the leading projects on the market.
Users had an issue maintaining the level of interconnection between the two blockchains. Since most people are from the Ethereum ecosystem, the PancakeSwap developers understood that they needed to simplify this process. The platform was built to integrate popular wallets, including Trust Wallet, TokenPocket, WalletConnect, MathWallet, and MetaMask. What's more critical, MetaMask was well ahead of the pack as the wallet was created to support BEP-20 tokens alongside ERC-20 tokens.
Commissions and transactions
PancakeSwap does not use the Ethereum network. It uses the BSC network and BEP-20 tokens. In this way, fees are low, typically between $ 0.04 and $ 0.20, and transactions take less than 5 seconds on average.
PancakeSwap is a secure platform. It's a non-custody DEX, so the platform does not store your assets in big wallets. For this reason, DEX is much safer than centralized exchanges. Additionally, PancakeSwap had a third-party audit done by cybersecurity company CertiK.
Since the audit confirmed the security of the platform, PancakeSwap was able to add more features.
The platform integrates different deflationary protocols to maintain the value of its token. These protocols involve multiple token burnings. For example, 100% of the CAKE, the platform's token received as part of Initial Farming Offerings (IFO), is burned. In addition, 10% of all profits from the PancakeSwap lottery and the percentage of CAKE grown are burned.
How Can I Earn Tokens (CAKE)?
PancakeSwap Liquidity Pools
Users can contribute liquidity to pools and receive LP (liquidity provider) tokens in return. These tokens are priced as the total value of the pool grows. Also, such unlimited liquidity pools allow members to earn money without trading their assets directly. There are currently over 70 different liquidity pools where you can bet on PancakeSwap. On average, users receive a yield of 22.52% to 377.19% per year. These rewards are paid out in the platform's token, CAKE.
PancakeSwap adds some exclusive pools to the equation with SYRUP pools. All these liquidity pools are beneficial. Some of them can generate income from 42.33% to 274.12% per year. In addition, you can earn tokens by placing bets on SYRUP pools. Users receive rewards at UST, LINA, SWINGBY, and others.
All people who store liquidity pool tokens have access to several streams of income just for their participation. In particular, they receive a portion of the trading fees generated by the platform. Of the average commission of 0.2%, 0.16% is redistributed between LP token holders directly.
It's worth mentioning the main feature of PancakeSwap - it's an easy-to-use DEX (Decentralized Exchange). DEX was created from the ground up to give new members access to the features they need to trade. You can exchange them in seconds.
PancakeSwap Yield Farm
PancakeSwap maintains crop growing pools. Profitability farming is like a bet: you lend your cryptocurrency through smart contracts to various projects and get good rewards in return. However, it is crucial to understand that the main difference between staking and farming is that there are usually no blocking periods in farming protocols.
Users can now stake tokens on PancakeSwap and earn them easily. Betting is considered the best option for newcomers to the cryptocurrency market as it requires much less labor than trading. You don't need to keep track of multiple platforms or learn complex trading strategies. All you need to do is close your cryptocurrency in the stake pool for a predetermined time, and the platform handles the rest.
PancakeSwap 2021: Price Predictions
Predictions are always intriguing. So let's review some PancakeSwap price predictions:
In February, with CAKE trading at $6 and already up 1200% YTD, CoinGape concluded that CAKE would trade between $8 and $15 in 2021.
Also, in February, Coinpedia released its 2021 PancakeSwap price prediction of between $60 and $80 by the end of 2021, saying CAKE could trade at $150 by the end of 2022 and $280 in five years.
FXStreet also released its PancakeSwap price prediction at $21.70 in March. At the time, CAKE was trading near $12 and faced resistance at $13.
Wallet Investor predicts a PancakeSwap (CAKE) price of $44.20 by the end of 2021 and $154 over the next five years,while Digital Coin Price claims CAKE will reach $31.24 by the end of 2021 and $35.77 by 2022.
How Can I Buy and Trade PancakeSwap (CAKE)?
How to Buy PancakeSwap (BSC)?
To become an owner of our exclusive tokens, all you need to do is to visit any of the PancakeSwap Crypto Exchanges and buy thea required amount of the BSC currency. The procedure is super simple and convenient; you’ll get access to numerous trading pairs.
Each user can buy CAKE on ChangeNOW for one of 170+ cryptocurrencies or for 18 fiat currencies. Here are the detailed instructions:
- Pick CAKE as the “You get” currency above;
- Choose crypto or fiat to buy CAKE with;
- Enter your PancakeSwap (BSC) wallet address;
- Send your deposit to a one-time address;
- Receive your exchanged coins in ~5 mins!
How to Sell PancakeSwap (BSC)?
Users can swap PancakeSwap (BSC) coins for an asset from the crypto selection by following the steps below:
- Pick CAKE as “You Send” currency above;
- Choose the asset you’d like to get for your CAKE;
- Enter the wallet address of the coin you’d like to get;
- Send your deposit to a one-time address;
- Receive your exchanged coins in ~5 mins!
Each user can store their BEP20 tokens in such wallets as:
Since Trust Wallet has native support for PancakeSwap, users can easily store all their Binance Smart Chain assets , including CAKE in this wallet once they have "harvested" the tokens. What's more, you can convert your CAKE tokens into other BEP20 assets directly in Trust Wallet as needed.
You can buy crypto with a credit card, bank account, iDEAL, Bancontact, EPS, Giropay, and Sofortbanking. What's more, users are able to swap and exchange one cryptocurrency for any other instantly. The app provides scan, pair, and reliable management of the wallets.
Swap tokens directly from your desktop or mobile wallet. The Swaps feature of this wallet combines data from decentralized exchange aggregators, market makers, and DEXs, to ensure you get the very best price with the lowest network fees.
In addition, Swaps ensures that users always have access to the largest selection of tokens and the most competitive prices by providing prices from multiple aggregators and individual market makers in one place.
PancakeSwap: The Future of Decentralized Finance
PancakeSwap is a new and one of the unique decentralized financial systems that can significantly move the financial market forward. This decentralized crypto exchange platform is incredibly inclusive and compatible with most modern ERC-20 projects.
Moreover, PancakeSwap is playing an ever increasing role in the DeFi industry. Together with Binance, it's meeting user expectations for the DeFi ecosystem by providing scalable functionality, exciting rewards, and higher overall performance.
So, place your bet now!