A Guide to PancakeSwap | Binance Academy

TL;DR  Another food-themed DeFi protocol ? You know it. PancakeSwap is a Binance Smart Chain-based DEX launched by anonymous devs with a preference for breakfast foods and rabbits. It looks a spot like Ethereum ’ sulfur SushiSwap ( community government, the ability to farm fluidity supplier tokens ), but besides incorporates many other features that let you earn rewards.

Introduction

The food-based farm craze has captivated participants in the crypto space for months. In the latest wave of DeFi protocols, we ’ ve seen numerous platforms emerge that allow users to impale their funds in return for the protocol ’ randomness tokens. The bulk of this activeness has been concentrated on the Ethereum blockchain. As one of the earliest blockchains supporting smart contracts, it has a sprawling residential district of users, developers, and tools for building herculean decentralized applications.

What is PancakeSwap?

PancakeSwap is a decentralized exchange for swapping BEP-20 tokens pancake-img1pancake-img1 The PancakeSwap exchange UI. Familiar with Uniswap or SushiSwap ? then you ’ ll have no emergence grasping PancakeSwap – they are quite like in their core design.

The PancakeSwap exchange

PancakeSwap uses an automatize commercialize manufacturer ( AMM ) model. That means that while you can trade digital assets on the chopine, there international relations and security network ’ thyroxine an order koran where you ’ re matched with person else. rather, you trade against a liquid pool Those pools are filled with other users ’ funds. They deposit them into the pool, receiving fluidity supplier ( or LP ) tokens in return. They can use those tokens to reclaim their share, plus a fortune of the deal fees. so, in brusque, you can trade BEP-20 tokens, or add fluidity and gain rewards. There are besides early features we ’ ll cover belated. You ’ ll find these LP tokens in several flavors – if you added, say, BUSD and BNB to the pool, you ’ ll experience BUSD-BNB LP tokens in reelect. BETH and ETH ? You ’ ll get BETH-ETH LP tokens.

Farming and staking on PancakeSwap

But expect, there ’ randomness more ! PancakeSwap besides allows you to farm its government nominal – CAKE . Yum. On the farm, you can deposit your LP tokens, locking them up in a process that rewards you with CAKE. Which LP tokens can you deposit ? Well, the list is quite long, but here ’ s a taster of some of the most popular ones :

  • CAKE – BNB LP
  • BUSD – BNB LP
  • BETH – ETH LP
  • USDT – BUSD LP
  • USDC – BUSD LP
  • DAI – BUSD LP
  • LINK – BUSD LP
  • TWT – BNB LP

The rewards don ’ thymine end here, however ! You can earn even more by staking your patty in SYRUP pools. therefore you ’ ve deposited some funds to receive LP tokens, and you ’ ve used them to farm CAKE. From there, you can stake your CAKE and earn early tokens through special bet on pools. The biggest syrup pool is plainly for CAKE, where you can interest your CAKE to earn even more patty ! But there are many more tokens you can earn by staking CAKE, then be certain to keep an eye on the SYRUP pool foliate.

Using PancakeSwap

You ’ ll comment if you visit https : //pancakeswap.finance that many features are inaccessible until you click on Unlock Wallet. Click on it, and you ’ ll be met with a few options : MetaMask, Trust Wallet, WalletConnect, Binance Chain Wallet, and other options. But wait, we hear you say, international relations and security network ’ metric ton MetaMask an Ethereum wallet ? Yes, it is, but the architecture of Binance Smart Chain is such that you can use MetaMask to interact with BSC-based DApps. If you choose to use MetaMask, we suggest you check out our Connecting MetaMask with Binance Smart Chain guide. once you ’ ve got that set up, you can unlock your wallet to reveal extra data. You ’ ll see that different LP tokens promise different returns. So how can you add liquid ?

Adding liquidity

again, if you ’ ve used any AMM previously, then you know the drill. To farm CAKE, you need to first add liquid to the rally. Navigate to Trade on the sidebar on the left, then click on Liquidity, hit Add Liquidity, and select the token pair that you want to deposit. besides, make sure you know about impermanent loss before adding fluidity to a pool .pancake-img3pancake-img3 Adding liquid to PancakeSwap.

Farming

Okay, so you ’ ve got your LP tokens, now it ’ sulfur time to post them to earn CAKE. Navigate to the Farms check, and select the option that matches your lp tokens. As with ERC-20 tokens, you ’ ll need to approve the motion of BEP-20 tokens – this is what allows the contract to withdraw them on your behalf. When you click Approve Contract, a popup will ask you to confirm the transaction and display a tip. once that transaction confirms, plainly select the amount you want to stake and confirm it. You can navigate away from the page and come back at any fourth dimension to check how much CAKE you ’ ve earned – if you want to harvest your rewards at any point, click on Harvest and confirm the transaction.

Staking

once you ’ ve got CAKE, you can stake it in SYRUP pools. Go to the Pools tab, and you ’ ll be presented with the pools where you can stake your CAKE .pancake-img4pancake-img4 SYRUP pools – stake CAKE, earn new tokens. once again, you need to approve the withdrawal of your tokens. Hit Approve CAKE to do so. When that has been approved, you ’ ll motivation to select the amount of CAKE you want to stake. now that the CAKE has been staked, you ’ ll be earning the advantage nominal of the pond passively. If you ’ d like to cash out your rewards, snap on Harvest.

Lottery

That ’ randomness great, but what else can you do with your patty ? Well, you can enter a lottery on PancakeSwap .pancake-img5pancake-img5 Try your luck in the PancakeSwap lottery. Each lottery session takes 6 hours. One ticket costs 10 CAKE, which will give you a random four-digit combination of numbers between 1 and 14, for case, 12-8-4-3. To win the pot ( 50 % of the integral lottery pool ), the numbers in your ticket need to match all four numbers in the like position as the winning ticket. What if you don ’ triiodothyronine peer all four ? No worries. You besides win rewards if two or more of your numbers are in the same position as the numbers in the gain ticket.

NFTs

Wait, so you can do even more with PancakeSwap ? Yes, you can win special NFTs . Win some of the cutest NFTs on BSC. If you ’ ra chosen as a winner of an NFT, you can trade it for the CAKE value it represents or keep the cutie in your wallet as a collector ’ south detail. How can you get involved ? You need to register for a probability to win, and the winners get chosen at random. Make certain to keep an eye on the NFT page for upcoming opportunities.

Teams & profiles

Looking for more gamification ? Teams and profiles are your chance. You can show off your stats by creating a public profile, and join one of the teams to compete for team achievements !

IFOs

initial Farm Offerings ( IFO ) are a way to get a newly launched keepsake in the hands of users using the power of give farming. On PancakeSwap, you can do that by committing LP tokens from a supported pool to get access to the sale of a newly launched keepsake. You can check the presently active IFOs on PancakeSwap on the IFO page

Is PancakeSwap safe?

PancakeSwap has been audited by CertiK. Does that mean it ’ s wholly safe to use ? No. Depositing funds into a chic compress always carries the gamble of bugs, even for audited and highly reputable projects. never deposit more than you can afford to lose.

Closing thoughts

PancakeSwap is the biggest AMM undertaking on Binance Smart Chain ( BSC ) with some innovative features. You can besides track a lot of its metrics on hypertext transfer protocol : //pancakeswap.info/ Ethereum may have kickstarted the DeFi course, but initiatives like PancakeSwap suggest that the wave of invention is destined to spread to early chains .

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