where a considerable volume of decentralized finance (DeFi) action takes place. Unlike PancakeSwap which was launched in September 2020, Sushiswap was created a month earlier, while Uniswap was launched in November 2018.
PancakeSwap is based on the Binance Smart Chain and uses BEP-20, while the other two are based on the Ethereum blockchain and use the popular ERC-20 token. Due to the problem of high trading fees on Ethereum, people switch to bep20 token generator in PancakeSwap because it offers much lower trading fees.
Created before PancakeSwap, Ethereum-based DEXs have a large number of users, developers, and tools to create the necessary decentralized applications. However, the fact that BSC is newer and not yet well established does not stop it from moving forward.
The DEX is already recognized among other DEXes. On multiple occasions, it has overtaken the top DEX for a long time, Uniswap, to become the most popular DEX in terms of trading volume, although it has not consistently held the position.
PancakeSwap?
Like all decentralized exchanges, you can trade tokens without the need for a centralized broker while still keeping custody of your tokens
Launched in September 2020, PancakeSwap uses an Automated Market Maker (AMM) model that does not require an order book to match someone else whenever you want to trade digital assets on the platform; instead, it trades against a pool of liquidity through Smart Contracts.
How does PancakeSwap work?
Since PancakeSwap does not support fiat currency, it is important to have cryptocurrencies, especially CAKE tokens, along with some BNB before anything else. These coins can be stored in crypto wallets like Trust Wallet, MathWallet, and Binance Chain Wallet.
You can also use the Ethereum wallet, MetaMask. You just have to configure it to work with Binance Smart Chain.
Next, visit their website at and connect your wallet there.create bep20 token platform features are displayed on the left side of your web browser screen. You have the option to provide liquidity, trade or farm the tokens.
Add Liquidity — To provide liquidity, tap on the “pools” tab to deposit funds into any of the available liquidity pools. By doing so, you will receive a Liquidity Provider (LP) token in return. The LP tokens that are distributed to all users are received from a portion of the trading fees that each user pays for using the platform.
How much fee is redistributed directly to token holders?
Of the average 0.2% fee, 0.17% is redistributed directly to LP token holders, while the rest of the fee is held in the PancakeSwap Treasury to bep20 token development service maintain the platform.
Trade: To trade or trade the LP tokens you have received for profit, tap on the “Trade” option, select “Trade” and then choose which token in your connected wallet you want to trade or exchange. In order for the transaction to be completely successful, you will need to confirm it in your wallet.
Farm Production — To farm, tap on the “Farms” tab and select any of the pairs that match your LP tokens.
You can collect your rewards anytime you want, just click “Reap” and confirm the transaction.
Staking — This is also another feature of the PancakeSwap platform. Simply deposit your crypto into any Syrup pool for any length of time and leave it there. The rewards you will receive will depend on the amount of cryptocurrency you stake and for how long.
conclusion
PancakeSwap is the largest and most frequently used AMM on Binance Smart Chain, both for yield farming and token gambling. Coming in second place on the list of top DEXes on CoinmarketCap, the platform is closing in on record daily trading volume like top-ranked Uniswap.
The progress made by PancakeSwap and other DEXes shows the growing level of innovation in the DeFi space.
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