What Is Pancakeswap? How To Use It And Reasons To Invest In Pancake Swap?
Pancakeswap is the latest invention, in traditional times, old methods were used by the people for trading purposes; this made buying and selling the trades’ a slower process for the people. After certain time pancakeswap trading bot was invented; they ensure the fast entries and exits from the token that a person has sniped.
Poancakeswap are mainly used to scan the token in exchange for liquidity resulting in a profitable transaction for the people. As per the research and analysis, it is believed that this is the oldest and the most widely used front running bot available for people. The main reason for this bots’ popularity is that it keeps on updating the version to provide convenience to the people.
What Is Pancakeswap?
Pancakeswap is a decentralized exchange developed to swap the BEP 20 tokens. BEP 20 is the Binance token standard that the Binance Smart Chain must follow. So, for example, if any other token standard wants to be transferred to the pancake swap, they need to be wrapped in the BRP-20 standards for the swap.
Some of the features of the pancake swap that a person must know:
- This is the fully decentralized exchange in which the execution of the trades is done automatically through smart contracts.
- The Platform was initially launched in September 2020. This Platform is audited regularly by the block chain security companies like Slowmist and Certik.
- Pancake swap is one of the safest options for trading as the security audits are regularly performed on this platform.
- It generally uses the automated market model (AMM), which means that the person has the freedom to use the digital assets on this particular platform.
- The pool of the pancakeswap trading bot is filled with the user’s funds that he deposits in the pool.
Reasons To Invest In The Pancake Swap
These days people consider investing in pancake swap a solid opportunity. Various reasons make this the priority of the people. Let us discuss about them in detail:
The constant revenue stream from trading fees
The first question that strikes the person’s mind is regarding the fees on the pancake swap. If the person is planning to do the trading with the help of this Platform, then he will have to pay 0.25% of the total trading fees. This will just be divided into three pieces:
- In the breakage, the first part of 0.17% is just returned to the liquidity pools as the fee reward for all the liquidity providers.
- Then the other part of the 0.03% is just sent to the treasury of the pancake swap.
- Last and the final part of the 0.05% are just sent to facilitate CAKE buyback and burn.
Hopefully, now it is quite clear how the pancake swap makes money. The more money the pancake swap makes, the better will be the effect on the cake governance token price.
Staking Through the Auto Compound
The best thing about the pancake swap is that it provides the option of the auto compound facility to the users. The users are not required to manually restake their cake, but the process will just be completed automatically. This feature provides a good amount of convenience to the users.
The Binance supports this Platform
Another reason that people love to trust this option of trading is that it is a decentralized exchange that has been built on the top of the Binance Smart Chain, which is the best alternative to the Ethereum. The BSC is run by Binance, the owner of the world’s largest cryptocurrency exchange.
Higher Yield
If the people prefer to use pancake swap, they will get a higher yield than the other available options. The calculation of the output can be done by following specific steps:
- The first is the LP rewards APR is earned by providing the liquidity.
- Second, the farm base rewards APR are earned through staking the tokens in the farm.
Higher Level of the Security compared to Other Yield Farming Platform
Even this is the Platform known to provide higher security to the users than the other available platforms. It is the Platform that two block chain security firms like:
- Celtic: This firm uses formal verification technology to provide hacker-resistant and penetration testing and other methods.
- Slowmist: It provides the facility of cyber security and protection for all the most significant assets exchanges.
No matter where a person is planning to do the investment, it will include some amount of the risk. However, multiple platforms provide such an option, so it can just give better security to the people.
How to Use The Pancake Swap?
Hopefully, it is quite clear that the pancake swap is the best option of trading for the people. People are using this Platform at a tremendous rate. Moreover, using the Platform is relatively easy; the person will have to follow some of the basic steps:
- Create the crypto wallet
To use the pancake swap properly, the person needs to connect it to your cryptocurrency wallet. The person can gather complete guidance from the official site if he does not know how to connect it to the wallet. The person can use multiple wallets, but the best option is:
- Meet mask wallet
- Binance smart wallet
- Trust wallet pancake
- Transfer The Crypto Coin From The Wallet
If you wish to transfer the crypto coin from the wallet, the only thing that the person will have to do is go to the side menu, click on the trade option, and then on the exchange. Here the person can select the token that he wants to exchange.
- Add the liquidity pool
To go through the liquidity, click on the trade option followed by the liquidity, then click on the add liquidity option that will pop up on the screen. After this point, the person will have to specify the token you want to deposit to provide the liquidity.
- Select The Farming Tool
At this step, the person will have to click on the “earn” and press the farm button and select a farm of your LP tokens. After this point, the person will have to specify the amount of farm and then confirm the operation.
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