TVL > 100K
What is PancakeSwap (CAKE)?
PancakeSwap is an automated market maker (AMM) which is a decentralized finance (DeFi) application that allows users to exchange tokens, all whilst providing liquidity through farming, where in return they can earn fees. PancakeSwap has a native cryptocurrency token known as the CAKE token which is a BEP2-20 standard token. It was originally launched on the Binance Smart Chain and serves the role of incentivizing the liquidity of the platform. Users can stake their tokens to earn rewards, and this is done through depositing LP tokens or locking them in the pool. This farming process is rewarded by the system with CAKE tokens, which can be withdrawn with zero holding time.
Who are the founders of PancakeSwap (CAKE)?
PancakeSwap was originally launched in 2020 and is built on automated smart contracts that are deployed on the Binance Smart Chain, which is the blockchain platform that is run by the cryptocurrency exchange Binance. When it comes to the founders, however, we do not really know who they are as it is developed by anonymous developers. However, one thing that we know of is the fact that, even though Binance operates as a centralized exchange, it does not have any control or operation over PancakeSwap.
What makes PancakeSwap (CAKE) unique?
PancakeSwap is unique in the way through which it uses an automated market maker model. This allows it to use liquidity pools instead of order books. As such, any user has the opportunity to earn income by becoming what is known as a liquidity provider. By adding their tokens into a liquidity pool, users can farm LP tokens, and then they can stake the CAKE tokens they get to earn even more rewards. PancakeSwap cuts out the middleman typically found on centralized exchanges and lets users get the rewards instead.
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