What is PancakeSwap?
PancakeSwap is a DEX focused on the Binance Smart Chain introduced by unknown devs with a fascination for rabbits and breakfast foods.
It is similar to SushiSwap of Ethereum but it also has several other features that enable you to win rewards.
We will take a look at PancakeSwap in this report, a decentralized exchange focused on the Binance Smart Chain (BSC).
How does PancakeSwap work?
PancakeSwap runs on Binance Smart Chain. The Binance Smart Chain (BSC) is a similar running blockchain to the Binance Chain. In comparison to Binance Chain, BSC has smart contract functionality and compatibility with the Ethereum virtual machine (EVM).
The aim of the architecture of the Binance Chain is to preserve intact high performance while integrating smart contracts into its ecosystem. Both blockchains, in theory, operate side-by-side. It is worth noting that for layer two or off-chain scalability, BSC is not a so-called workaround.
Because BSC is EVM-compatible, with support for the rich universe, it has published Ethereum tools and DApps. This makes it possible for developers, theoretically, to port their projects from Ethereum.
For users, this means that applications like MetaMask can be easily configured to interact with BSC.
For exchanging BEP-20 coins, PancakeSwap is a decentralized exchange. PancakeSwap is very similar to Uniswap or Sushiswap in its nature.
An Automated Market Maker (AMM) platform is used by PancakeSwap. That ensures that there’s no order book where you’re paired with someone else when you can share digital assets on the website. You trade against a liquidity fund instead.
Those pools are deposited with funds from other users. In exchange, they deposit them into the tank, earning liquidity supplier (or LP) tokens. They will use certain tokens to recover their part, plus a fraction of the trading costs.
So, you can swap BEP-20 coins, in short, or add liquidity and win incentives. There are other qualities we’ll discuss later as well.
If you connect, claim, BUSD and BNB to the pool, you can earn BUSD-BNB LP tokens in exchange. You will see these LP tokens in many varieties.
You need to first apply liquidity to the exchange to farm CAKE.
If the investment is verified, simply pick and validate the sum you wish to spend. You can navigate away from the website and come back at any time to see how much CAKE you’ve won – if you want to harvest your incentives at any moment, click on Harvest and validate the transaction.
You might be wondering if PancakeSwap is safe to use. PancakeSwap has been audited by Certik. However, even for audited and extremely respectable projects, depositing funds into a smart contract still carries the possibility of glitches. Never make more deposits than you can manage to risk.
How do I access PancakeSwap?
You’ll find if you visit the PancakeSwap website and make sure that certain things are ready before you click on Unlock Wallet. Click on it and a couple of choices will be available: MetaMask, Trust Wallet, WalletConnect, Binance Chain Wallet, and more.
Binance Smart Chain’s design is such that you can communicate with BSC-based DApps using MetaMask.
Binance has provided a guide on accessing PancakeSwap with Metamask. Specifically, users need to set up the BSC Mainnet on their Metamask using the following settings:
Network Name: Smart Chain
New RPC URL: https://bsc-dataseed.binance.org/
ChainID: 56
Symbol: BNB
Block Explorer URL: https://bscscan.com
