PANCAKESWAP: REVIEW AND INSTRUCTION

The decentralized exchange (DEX) PankaceSwap is based on BNB Smart Chain (Binance Smart Chain) blockchain according to BEP-20. The exchange presents itself as an alternative to platforms which are running on Ethereum blockchain.

PancakeSwap uses an automated market maker model, users trade against a liquidity pool. BEP-20 tokens can be exchanged on platform. The liquidity pools on PancakeSwap are filled by users. As a reward users receive tokens from the liquidity provider - LP. It's called FLIP on PancakeSwap. FLIP tokens can be used to return your part and repay a portion of the fee.

FLIP tokens can also be used for CAKE farming. You can bet on CAKE tokens to get SYROP tokens. Final updates have additional functionality as management tokens and as lottery tickets.

Lotteries and NFTs cards are the distinctive features of PancakeSwap exchange. Lottery participants can win up to 50% of the lottery pool or receive a variety of awards. NFTs cards are analogs of collectible items and characters in online games. They can be stored or sold for CAKE.

From main features we slightly move to describing the working process on PancakeSwap.

To start working on PancakeSwap, you should connect a cryptocurrency wallet to the exchange. Click on "Connect" button in the upper-right corner.

There will be a window with supported wallets you may select. Select the wallet you need and connect it to the exchange. The account will be created automatically after the connecting wallet.

Typically, a TrustWallet wallet belonging to Binance Exchange is used for connection to PancakeSwap. The wallet works on BSC network, which provides lower fees.

To work with PancakeSwap, you need to have CAKE tokens. You can buy it on Binance exchange and then transfer to Trust Wallet, or you also can buy it on PancakeSwap directly. To do this, open the side menu, click on “Trade" tab, then “Exchange".

In the first window, select the token that we will sell. In the second, the CAKE token. At the first stage of the exchange process there will be 2 confirmation payments – for activating the wallet and exchanging funds.

To farm CAKE tokens, you need to get LP tokens for providing liquidity. To do this, open the side menu again, click on “Trade "tab, then “Liquidity”.

Click on "Add Liquidity" button. A window similar to the exchanger will be presented. We select a pair of tokens that we are going to deposit. Before adding liquidity to the pool, read the article about impermanent loss.

Briefly: Impermanent loss is the difference between storing tokens in the liquidity pool and on the wallet. Impermanent loss happens when you provide liquidity to a liquidity pool, and the price of your deposited assets changes compared to when you deposited them.The bigger this change is, the more you are exposed to impermanent loss.

Tokens must be added in a 50/50 ratio in relation to USD. For example, $10 BNB and $10 CAKE. We check the details, confirm the sending and the transaction in the wallet. When you add a BNB/CACE pair, you get CAKE-BNB LP tokens. This must be taken into account while you farm tokens.

To farm tokens, go to the "Farms" tab in the side menu. There will be a list of currently existing farms. We choose a farm for those LP tokens that we created earlier. If the CAKE-BNB LP tokens were created, select the farm.

We select the amount that we want to send to CAKE farming and confirm the operation. That's it, the CAKE tokens are being farmed. You can collect the reward at any time.

For "staking", we should buy CAKE tokens and send them to the general CAKE mining pool. To do this, open the side menu and go to the "Tools" tab.

After adding tokens to the pool, you can reinvest to increase the production of CAKE. Each transaction is a fee.

The received profit can be taken (Harvest), reinvested (Compound), add new tokens (+) and take the profit and coins from the stake (Unstake CAKE).

On PancakeSwap, you can earn money by predicting the price of BNB/USDT. What is the point of prediction? The user puts on a decrease/increase in the price of the instrument. If the user guesses right, the user gets the specified coefficient.

After accepting bets, the process lasts five minutes. This demonstrates the change in the price of BNB/USDT. Now the Prediction platform is at the beta test stage, but anyone can try to make money on price prediction.

CAKE tokens give you the opportunity to participate in the lottery. The lottery takes place every 6 hours. To take part in the lottery, open the side menu and go to the “Lottery” tab.

One ticket costs 10 CAKE tokens. You will get a random four-digit combination of numbers from 1 to 14. To win the jackpot, the numbers on the ticket must match the numbers on the winning ticket. If two or more numbers match, you will receive various rewards from PancakeSwap.

Among other things, PancakeSwap users can win NFT tokens in the Balance Smart Chain network.

The resulting NFT can be left in the collection, or you can sell it for CAKE. The cards have different prices.

You can also create a profile on PancakeSwap and join a team. This makes it possible to perform various tasks in the Task Center and participate in team battles. The motivation of users is earnings.

To create an NFT profile, you need to pay 1.5 CAKE and 0.001 CAKE for choosing an avatar. Then you will need to select a team and specify a nickname.

According to the CoinGecko rating, the decentralized exchange (DEX) PancakeSwap occupies the 3rd place in terms of trading volume. The exchange operates in the BSC network, the fees are lower than in the Ethereum network, and the speed of operation is higher. Therefore, the PancakeSwap cryptocurrency looks promising at the moment. However, the situation may change after the full launch of NET 2.0.