What Is PancakeSwap?
PancakeSwap is a decentralized exchange built on the Binance Smart Chain and is a Uniswap V2 fork. It allows for the swapping of digital assets in a decentralized manner.
Background
An anonymous team founded Pancake Swap in 2020.
How It Works
PancakeSwap was launched with features similar to Uniswap, where liquidity providers can deposit paired assets into liquidity pools and collect fees from trades. Since its inception, PancakeSwap has expanded its platform to include additional features such as perpetual trading, limit orders, a lottery pool, and an NFT exchange.
The platform’s governance token is CAKE. Users can utilize CAKE to participate in yield farming or stake it in syrup pools to earn additional tokens. PancakeSwap also incorporates various buyback and burn mechanisms, utilizing fees from its diverse product offerings.
Key Takeaways
- PancakeSwap is a decentralized exchange built on the Binance Smart Chain and is a fork of Uniswap V2.
- It allows for swapping digital assets in a decentralized manner.
- PancakeSwap was founded by an anonymous team in 2020.
- The platform has expanded its features to include perpetual trading, limit orders, a lottery pool, and an NFT exchange.
- Users can utilize the platform’s governance token, CAKE, for yield farming or staking in syrup pools to earn additional tokens.
