PancakeSwap, a Decentralized Finance (DeFi) platform, is one of the more recent DeFi projects that has stood out to me, as well as many others in the realm of cryptocurrency and blockchain technology.
PancakeSwap Exchange is an automated market maker for anyone to trade with. While it started out as a copy and paste of Uniswap on another blockchain, PancakeSwap Exchange has developed a host of features which have caused it to be used more frequently than Uniswap.
Our PancakeSwap review will help determine if the platform is right for your needs. The exchange has more Total Value Locked than Uniswap and it’s a great place for users to earn passive income.
What are the pros and cons of PancakeSwap?
Pros
- High aprs on farming
- Cheaper than Uniswap
- Many tokens
- More transactions than Uniswap
Cons
- You can incur impermanent loss of the farms
- Their prediction and lottery gambling apps can make you lose money
- There’s a lot of PancakeSwap scams
What wallets does PancakeSwap support?
PancakeSwap supports a plethora of different wallets, including:
- Metamask
- Trust wallet
- MathWAllet
- TokenPocket
- Binance Wallet
- Safepal
- Coin98
How do you connect your wallet to PancakeSwap?
Connecting your web3 wallet to PancakeSwap couldn’t be easier.
- Goto PancakeSwap
- Click Connect wallet
- Select your wallet
- A popup should show asking you to verify
- Click to connect again!
What can you buy on PancakeSwap
Pancake swap hosts 1000s of different tokens. You can buy everything from CAKE to BTC. And a whole bunch of other altcoins.
Is PancakeSwap safe?
Yes, it’s very safe. And has never been hacked. Really, the only risks to PancakeSwap come from impermanent loss or being scammed.
What is impermanent loss?
Impermanent loss occurs when you provide liquidity and the price of the two assets diverges.
This loss is generally mitigated by the rewards that the farms print. However, this may not be the case for extremely volatile pairings.
How much does PancakeSwap charge in fees?
Fees are pretty reasonable. They charge 0.25% on each trade, and this goes, mostly, to the liquidity providers.
- 0.17% goes to the LP providers
- 0.03% goes to the PancakeSwap treasury
- 0.05% goes towards CAKE buybacks and burns
What are the features of PancakeSwap
Syrup Pools and LP Farms
Syrup pools are single-staked asset farms. You put up one asset, say CAKE, and you earn rewards for doing so.
Farms are dual-staked asset farms. They take in LP. And print rewards for you providing liquidity, on top of trading fees.
Lottery & Prediction market
PancakeSwap has two gambling games. We don’t advise you use these. But you should be aware of them.
- Lottery — you buy lottery tickets and win the entire pool of CAKE if you get the numbers
- Prediction marketes — you place bets on where the price of BNB will move to
IFOs
Kinda like ICOs, but earned through farming. People put up tokens for marketing purposes, and you benefit by earning rewards in their token.
