Posted by Sponsored Post Posted on 5 April 2022

Should You Buy PancakeSwap (Cake)? What Are the Advantages of This Cryptocurrency?

For 2022, PancakeSwap is the top decentralized exchange. It is an improved version of the Uniswap and SushiSwap exchange on the Ethereum blockchain but operates on the Binance Smart Chain. The BSC blockchain is considered the main competitor of Ethereum and will be able to replace it in the future. This will become possible if the volume of trade becomes large enough. PancakeSwap is also the largest DeFi protocol, so let’s take a closer look at how it works.

This DEX (decentralized exchange) is built based on the Binance Smart Chain (BSC) and has enough advantages over its competitors. The main task of PancakeSwap is the implementation of an anonymous exchange of various cryptocurrencies using internal tokens. At the same time, these coins allow users to participate in various programs for different rewards. The developers of the site are anonymous.

Its Advantages

What is the main reason to buy cryptocurrency? Pancakeswap is at the top of the DEX world, so the benefits are:

  • To work with the exchange, you do not need to create an account on its website.
  • The user remains anonymous.
  • There are low commissions of 0.2% USA/EN per trade, and transactions are as fast as possible.
  • The client does not need to transfer money to the exchange to carry out transactions.
  • You can connect a large list of wallets to the exchange.
  • PancakeSwap provides many opportunities for earning: farming, staking, lottery, getting profit on the growth of the CAKE token rate.
  • The exchange is actively developing and adding new features for users. In particular, the plans include the introduction of lending, binary options, and margin trading.
  • By voting, the clients of the exchange can support new directions for the development of the site or any updates (including choosing tokens for listing).
  • PancakeSwap is provided in many language versions.
  • The exchange has been audited by the reputable cybersecurity company CertiK.

Why is the CAKE Token Needed? 

There are four main ways to use it:

Staking CAKE for farming tokens of other projects listed on the exchange:

On staking, you can get good returns — the average return here is even higher than on staking LP tokens (obviously, the risks are higher here). The possibility of staking creates demand for the token.

Participation in the Pancake Swap lottery:

You can buy Pancakeswap (CAKE) on Changelly and spend its token on buying lottery tickets. Part of the proceeds goes to the prize pool, and part is burned. So, with the help of the lottery, CAKE inflation is restrained because, thanks to it, part of the tokens are burned regularly.

Buying an NFT avatar:

The acquisition of an NFT profile implies some bonuses for the user. And the tokens raised from the sale of NFTs are also being burned, curbing inflation.

Participation in the IFO:

Applications for IFOs are accepted in CAKE-BNB LP tokens, so cakes are required to create these LP tokens. After the IFO, all the cakes spent on the acquisition of tokens of a new project that is listed in the Pancake Swap are burned, curbing inflation.

At the same time, you need to understand that new tokens are constantly appearing in the form of rewards to users for providing liquidity. And it is important for the system to maintain a certain balance between the emission of a token and its burning, this allows the token to be in demand.

What’s So Special About It?

PancakeSwap cuts out the intermediaries of centralized exchanges, allowing other users to earn rewards. If you want to lend your tokens to the pool for a while, the rewards can be very high, especially with some liquidity pools and staking options. Of course, as with other DEXs, newcomers will likely find it hard to exchange cryptocurrency, navigate PancakeSwap, and understand its myriad features. But in short, here’s how it is done:

  1. With a Binance account, buy CAKE.
  2. On the same Binance, open Binance Wallet.
  3. Wallet from Binance was connected to PancakeSwap.
  4. Transfer funds and choose Syrup pool for CAKE.
  5. Add CAKE to the pool.

Why Is It So Cool?

According to a cryptocurrency overview, Binance Smart Chain is growing rapidly as developers take advantage of its low fees and faster transactions compared to Ethereum. In June 2021, Binance reported that the platform had completed approximately 4.9 million transactions in a single day, three times the amount Ethereum had ever processed in a day. 

PancakeSwap does not have the same level of average daily volume as Uniswap or SushiSwap, the two largest heavyweight DEXs on Ethereum. But it is already very popular, given the relatively young age of the Binance Smart Chain.

If the Binance decentralized application (Dapp) platform continues to grow and attract more developers and users and the skyrocketing gas fees and congestion of the Ethereum network continue, then PancakeSwap may very well get even tougher against competing exchanges over time.

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