PancakeSwap is a serious player in the field of Decentralized Finance (DeFi) sector, as this blockchain-based project is the most popular DEX (decentralized exchange) on the Binance Smart Chain. So, in a nutshell, PancakeSwap offers a decentralized alternative to crypto exchanges. The massive popularity of this DApp-solution can be explained by the great liquidity, fast-growing userbase, and a wide set of features to enable secure trading of Binance Coin (BNB) and a large variety of BEP-20 tokens. The core of PancakeSwap’s competitiveness lies in its automatized smart contract-based trading, speeding up the processes with increased safety as a bonus.
The compact history of PancakeSwap
As the platform was launched in September 2020, PancakeSwap is still a semi-fresh name in the sector. However, even though the background of this project is relatively vague due to the complete anonymity of the project development team, the trustworthiness of the platform has been confirmed repeatedly by independent audits carried out by reputable blockchain security firms. Furthermore, even though the developers' identities are unknown, the team is known to consist of more than a dozen members, so-called chefs, two project leaders known by their aliases, and several engineers. The PancakeSwap platform is completely open-source and can hence be scrutinized by curious parties making the project highly transparent.
PancakeSwap software trivia
As stated earlier, PancakeSwap functions as a DEX (decentralized exchange). PancakeSwap functions as an AMM (automated market maker) in its exchange operations, meaning that the high automatization can be detected from the lack of order books and bid/ask systems. Instead of these complex logs, users can trade on the platform in a highly automatic way drawing liquidity from self-balancing liquidity pools. In the event of a trade, liquidity is subtracted from one side of the pool to be added to another to keep the weights of the assets balanced in a single pool.
PancakeSwap is built on Binance Smart Chain, nowadays called the BNB Chain, and some of its perks include low transaction fees and quick confirmation times. In addition, the protocol is known for its secondary features such as IFOs (Initial Farm Offerings), Yield Farms, Syrup Pools, Lottery v2, Prediction Markets, and last but not least, NFT Collectibles.
CAKE, the token
PancakeSwap’s native token CAKE might ring a bell, as it can be found and traded on major crypto exchanges. However, the token is much more than a trading instrument. It is multi-functional and can be used for yield farming, voting on the platform’s governance proposals, staking, and participating in the PancakeSwap Lottery.
The future of PancakeSwap
PancakeSwap being the most dominant DEX on BNB Chain and one of the most popular DApps of all time, there is no denying the potential of this project – especially when considering how fast PancakeSwap has grown in its popularity and market share. What is more, PancakeSwap is a very trendy project proven by its advantageous secondary features, some of which are genuinely riding the tide of the latest crypto trends such as NFTs.