Binance Intelligent Link PancakeSwap and its usage

PancakeSwap listing stems from Ethereum overload. The most popular platform on Binance Smart Chain. DEX TVL topped $4 billion in six months.

The number of automated market makers (AMMs) and food-related farms per unit yield has surged over the past six months, driving the total locked-in value (TVL) across all platforms to a record $57 billion.

Following the major success of Uniswap's Decentralized Exchange (DEX) in 2020, SushiSwap's clones have been well received and it's only a matter of time before DEX clones them again and appears in competing pairs.

Ethereum (ETH) has been struggling under internal pressure as transaction fees continue to rise. This makes smaller DeFi operations, such as token exchanges, unfeasible even for people with deep pockets.

Food-themed PancakeSwap (CAKE) AMM and Liquidity Farms have pledged to solve the gas crisis by launching a faster blockchain, known as Binance Smart Chain (BSC). About six months after its debut, DEX attracted more than $4 billion in liquidity. Short history

PancakeSwap, a newer platform and therefore with little history, was launched on BSC in mid-September 2020 as a version of SushiSwap, but offers the exchange of BEP-20 tokens rather than the ERC-20 standard.

Like most platforms where Binance offers a lot of promotions, ETH promotes fast and cheap transactions when its transaction fees are at their highest.

PancakeSwap essentially functions in exactly the same way as SushiSwap, but has the advantage of being supported by a large centralized exchange, with a DEX, AMM, farm, pool or kitchen, and also a native token called CAKE.

At launch, there were a lot of crypto shillings in front of Binance and its secretive CEO, but the liquidity and number of tokens that people wanted to trade were small and Uniswap was still mainstream.

Production Agriculture went into operation on September 22, 2020, with a peak total lock-in value of $35 million after the first 12 hours. By comparison, Uniswap's TVL was $1.8 billion at the time.

PancakeSwap is not the only food-themed DeFi farm to be launched on BSC, as BurgerSwap and BakerySwap also went public a week ago.

As ETH gas prices continue to soar into 2021, with the average transaction price peaking above $40 in late February, AMM's popularity among express chains is growing, especially among DeFi novices. Please enjoy "cake"

Like its predecessor SushiSwap, PancakeSwap takes the liquidity of tokens from farmers, holding them in exchange for transaction fees for specific pools of funds.

Each time a user trades on PancakeSwap, traders pay a 0.2% fee, of which 0.17% is added to the liquidity pool of the swap pair they trade.

PancakeSwap, like most DeFi protocols, has an administrative token called CAKE. This token can be obtained by using a liquidity pool (LP) token in multiple farms on the platform.

When liquidity is provided through a token pair, such as BUSD/BNB, an LP token known on the exchange as LPIP is obtained. For example, users who deposit CAKE and BNB into their working capital pool will receive Cake-BNB FLIP tokens.

The provider (or farmer) receives tokens equal to the number of shares it has, which can then be deposited into other pools to earn CAKE. These CAKE tokens can also be put into the Syrup pool, which can be mortgagedagainst various obscure BEP-20 tokens (e.g. DITTO, DUSK, DEXE, WATCH, BUX, ALICE, etc.).

The syrup pool allows the BSC project to lead adoption by assigning part of its token to CAKE token holders. The pool is divided into two parts:

"Core", originally selected by the PancakeSwap team;

"Community", a project voted by the community on the governance portal.

Syrup Pool project brings the new DeFi protocol to market attention by issuing tokens to the largest and most active BSC community. In addition to the occasional income from the Binance exchange itself, it is also traded through initial farm products (IFO).

PancakeSwap is home to many different farms with varying yields. At the time of writing, top of the list is CAKE/BNB Farms, offering an annual return of close to 100%, multiplied by 40 times the amount of CAKE per block issued. At the time of writing, liquidity was $480 million.

Although some little-known farms have less liquidity, others have even higher APyS. TXL/BUSD Farms provided 570% of the APY and BELT/BNB provided 490%.

tokenology

According to the official documents, there is currently no hard cap on the supply of CAKE tokens, making it an inflation token. The main function of CAKE tokens, as well as the main function of many branch tokens, is to provide incentives to provide liquidity to exchanges, including:

"The aim of the chefs is to create a deflationary mechanism in PancakeSwap products so that deflation is higher than emissions and that more cakes are taken out of circulation rather than increased."

By reducing the number of pieces of CAKE, you can lower the rate of inflation. This has already been done once, reducing block emissions for the first time, effectively reducing the number of cakes from 40 to 25 each.

Burning is built into some of the exchange's products, such as 10% of lottery tickets.

At press time, CoinGecko reported 136 million cakes in circulation and a market capitalization of $1.4 billion.

The future is foreseeable

PancakeSwap doesn't just end up with automated market makers and lots of income farms. It also has a lottery system and supports irreplaceable tokens (NFT).

The CAKE lottery system runs for six hours every twelve hours, and a ticket costs 10 CAKE, with the holder having a random combination of four digits ranging from 1 to 14.

To win the jackpot of 50 percent of the total accumulated prize money, the numbers in the ticket must match all four numbers in the same position as the winning ticket. Prizes will also be awarded if two or more numbers are in the same position as those in the winning ticket.

PancakeSwap also offers digital collectibles that can be exchanged for CAKE tokens, which can be entered into the draw simply by registering for the contest.

What is a Bunny?

And if farms, cakes, lottery tickets and NTFS aren't enough, PancakeSwap has also launched something called Pancake Bunny as the new syrup pool. The blog post explains why DEX needs another token:

"Pancake Bunny was designed to support the underlying DeFi ecosystem by providing users with an easy way to automatically compound their revenue through the Binance smart chain."

BUNNY's offering, which runs from March 15 to May 14, will see 5,000 tokens allocated to liquidity providers and aims to attract collateral and liquidity to the platform.

"Cake" price outlook

DEX's native token was launched at the end of September under this agreement for about $1. Prices barely played a role when they started heating up in DEX's DeFi kitchen until February 2021.

CAKE soared to an all-time high of $19.50 on February 19. Since then, the token has cooled slightly, trading at about half that at press time. But it's still up more than 1,500 percent since the start of the year

Source: http://Coingecko.com

In terms of the total value locked up, PancakeSwap collateral has ballooned to about US $4 billion on a BNB basis, according to DappRadar.

The analytics platform also reports about 47,000 daily users and $426 million in daily transactions. There have been some allegations of fraudulent transaction volume data for BSC projects, but in-depth studies have cast doubt on this.

pancakes into the future

It's fair to say that PancakeSwap's popularity comes from Ethereum's decline. Gas prices in early 2021 were unsustainable for anyone without a serious stash of ETH, and most new investors in the DeFi sector gave up.

Critics explain that it is powered by a centralized switching house, but does not bother too many users, who are more interested in saving transaction fees when executing DeFi.

In the expanding world of decentralized finance, there is clearly more than one DEX space where the listed tokens are vague and have little practical use.