Pancakeswap is growing in popularity as it is much cheaper to use than any other defi stock market. Pancakeswapp was created with the very aim of being cheaper and more affordable than its competitors (e.g. Uniswap and Sushiswap). In fact, Pancakeswap is a defi protocol that provides affordable services to the average person (transaction fees only cost a cent).
In this guide, we want to show you exactly what Pancakeswap is, how it works, its possible advantages and disadvantages over your competitors, the difference between Pancakeswap vs Uniswap and how to use it.
Pancakeswap is a decentralized exchange operating on the platform of Binance Smart Chain (BSC), one of Ethereum’s largest rivals. This blockchain was launched by one of the world’s largest stock exchanges, Binance, specifically for dapps. Binance has thus become a competitor to two popular cryptographic projects, as it has copied both Ethereum and Uniswap.
The dex will also be able to outperform the Binance stock market if trading volume grows even higher. Pancakeswap is thus one of the biggest defi protocols, and it’s worth taking a closer look at what it can do. There are some important differences from Uniswap, so it’s not just another defi project called kaai.
Like the dexes on Ethereum that use the AMM solution, Pancakeswap allows users to exchange tokens with each other using liquidity pools. And for this to work well, the platform offers plenty of defi yield-hunting, interest-bearing opportunities for liquidity insurers.
No wonder the amount of capital tied up has already exceeded $ 1 billion. Their own token, CAKE staking, also gives you a 1: 1 SYRUP token, so you get a CAKE reward in proportion to the amount you hold.
At the moment, these three dex dominate the defi market.
All three dex offer token farming, while Sushi and Pancake also give token rewards in exchange for staking.
On Ethereum, Uniswap and Sushiswap compete with each other, sometimes in extreme ways. But which is more likely and why?
Sushi token owners receive xSUSHI tokens in exchange for a share of the proceeds from the pool’s transaction fees. This works similarly to the CAKE and SYRUP tokens. The Uniswap UNI token, on the other hand, gives only governance rights, so their owners can vote on platform matters. This is a significant difference and sheds light on why liquidity providers have begun to switch to Suhiswap and Pancakeswap as farmable yields have begun to decline.
Also Read: 5 Best Crypto Wallets in 2022
There is not much difference between the three dexes in this area, after setting up Metamask and acquiring the tokens you want to farm, you can farm on Pancakeswap as you would for the other two dex. We provide liquidity and therefore receive a reward.
And in the case of Pancakeswap, the huge advantage is that the transactions, including the start of farming, are much, much cheaper than Ethereum n. Of course, the price of this is that BSC is much more centralized than Ethereum.
Pancakeswap is ahead of both Uniswap and Sushiswap in this regard. The Binance Smart Chain simply has more than Ethereum, as it was created that way. To do this, they had to build a somewhat more centralized system, but so transaction fees are really only indicative. For smaller users, Pancakeswap is undeniably a better choice, as you don’t have to be a whale to pay gas charges.
The other big advantage is that since Ethereum is a clone, BSC can also be used with Metamask, so anyone who knows it doesn’t have to learn new things. It actually works the same way it does for Uniswap.
The Uniswap logo is a rainbow-colored unicorn, yet it is a serious project. Sushiswap and Pancakeswap, on the other hand, don’t want to take themselves so seriously, and even the image elements have been borrowed from the fields of gastronomy and spa. Pancakeswap even has a daily lottery draw using CAKE tokens, and the mechanism is simple, so it’s no wonder it’s popular with users.