PancakeSwap V2 Review: Big Move For AMM Platform

March 8, 2023 - Around 11 mins mins to read

PancakeSwap is a popular decentralized bitcoin exchange with gamification elements and a variety of ways to earn money. Hundreds of tokens, yield farming, liquidity pools, lotteries, and other features are available on the platform. This PancakeSwap V2 Review will go through the DEX’s price structure, tokens, and functionality, among other things.

PancakeSwap V2 Review: Big move For AMM Platform

Overview

PancakeSwap is a DEX based on the Binance Smart Chain (BSC), which promises quicker transactions and cheaper costs than comparable DEXs built on Ethereum (ETH) like Uniswap and 1Inch.

Unlike a standard centralized exchange like Binance or Coinbase, a DEX may be defined as a way to eliminate middlemen between traders by replacing the institutions that monitor transactions with smart contracts. PancakeSwap primarily utilizes BEP-20 tokens from the BSC, however, other tokens may be used through the Binance Bridge by “wrapping” them as a BEP-20 token.

PancakeSwap was designed by anonymous coders and will be released on September 20th, 2020, continuing the trend of food-based decentralized exchanges (DEXs) such as SushiSwap and BakerySwap. It has developed significantly in the decentralized finance industry (DeFi) since then, with a market valuation of more than $4 billion.

PancakeSwap employs smart contracts by establishing liquidity pools managed by automated market maker (AMM) technology. Liquidity pools are enormous collections of money comprised of tokens staked by users and regulated by algorithms that fulfill trade orders between users. This implies that, unlike conventional trading, where the buyer must locate a seller to execute their transaction, the buyer on PancakeSwap is simply dealing with a contract on a distributed ledger as long as there is enough liquidity in the loop.

If you want to check charts and statistics for PancakeSwap or the conversion rate of one CAKE to USD, you may use your browser to visit websites like CoinGecko or CoinMarketCap.

Currently, there are 2 versions of PancakeSwap, PancakeSwap V2 and PancakeSwap V1, in which PancakeSwap V2 is an updated and upgraded version of PancakeSwap V1. You should use PancakeSwap V2 because V2 is updated with new features as well as improved security, fees and transaction speed.

In this upgraded version, PancakeSwap will migrate and develop a new smart contract system. In addition to bringing security improvements, users can also modify token burning. This burning causes the values in the protocol not to be inflated. With the new update, the system’s CAKE count will be updated every Swap.

PancakeSwap welcomes traders from Australia, Thailand, Canada, the United States, the United Kingdom, South Africa, Singapore, Hong Kong, India, France, Germany, Norway, Sweden, Italy, Denmark, the United Arab Emirates, Saudi Arabia, Kuwait, Luxembourg, and Qatar, amongst others. Now, the PancakeSwap V2 Review article will explore payment methods.

Payment Methods

PancakeSwap does not accept fiat currency deposits, therefore you must acquire cryptocurrency via an entry-level exchange (an exchange that allows you to swap fiat currencies like USD and GBP with cryptocurrencies).

To start trading on the DEX, you must first link your digital wallet, which is a simple operation (scan a QR code or add PanckeSwap’s network). The PancakeSwap website has a set of instructions for PC, iPhone, and Android that will enable you link wallets like MetaMask to the exchange or build a new one.

After you have crypto in your digital wallet, use Binance, Binance Bridge, or SafePal to convert it to the BEP-20 token, as advised by PancakeSwap. You do not need to register for an account to trade; you may do so without doing so.

Trading feartures

Exchange

This is the easiest way to trade since all you need is a suitable wallet and some BEP-20 tokens to get started. To make a deal, go to PancakeSwap’s exchange page and choose the two tokens you want to swap. You may track a token’s value history or do an exchange here. Then, choose either the amount of tokens you want to’sell’ or the number you want to ‘purchase,’ with a real-time price estimate.

Use the most recent exchange, PancakeSwap V2, where pricing on pairings are better. PancakeSwap V1, the earlier version, is more prone to slippage, which may result in financial loss.

Since new currencies are constantly being introduced to PancakeSwap, it’s easy to lose sight of what’s accessible and what isn’t. You may check websites like dextools.io for any fresh postings.

Provide Liquidity

PancakeSwap allows you to generate passive wealth by staking your tokens in liquidity pools. When you deposit CAKE and WBNB into a liquidity pool, you will obtain CAKE-WBNB-LP tokens, the quantity of which represents your share of the pool.

You receive rewards from trading costs when you utilize the CAKE WBNB liquidity pool to carry out trades. The trading cost is 0.25%, with 0.17% allocated to the liquidity pool to increase the value of your LP tokens, which may then be redeemed for money whenever you choose.

Yield Farm

The LP tokens you receive by putting your tokens into liquidity pools may also be used to win CAKE rewards. PancakeSwap features numerous yield farms, each of which requires you to bet two tokens to get the LP tokens associated with the specific farm.

To invest into the CAKE-WBNB farm, for example, you would need CAKE-WBNB LP tokens. The farms will be assigned a multiplier according on the quantity of CAKE they get every block. The CAKE-BNB farm has a 40x multiplier, which means it earns 40 CAKE for every block produced.

Syrup Pools

PancakeSwap, like produce farms, provides syrup pools. Both function in the same way, except that they only need one kind of LP token rather than two, as CAKE LP does. The fundamental distinction between syrup pools and yield farms is that yield farms provide higher profits but also involve the risk of temporary loss.

This happens when the value of your farm is less than what the tokens would have appreciated if left out. Nevertheless, the incoming trading fees often outweigh this and allow it to be successful.

There are two kinds of syrup pools: Auto CAKE and Manual CAKE. Auto CAKE, like a bot, will harvest and reinvest whatever CAKE you earn. Manual CAKE allows you to decide when to harvest your CAKE and what to do with it. There are many different syrup pools where you may earn tokens other than CAKE, however, they all need you to stake CAKE LP tokens.

Initial Farm Offering (IFO)

PancakeSwap users may create their own tokens to be issued to yield farmers via an initial farm offering (IFO). An IFO is a way for these initiatives to raise cash by allowing participants to stake tokens in new listings.

To participate, you must have an active profile, which costs 1.5 CAKE to create, and you can only stake using CAKE-BNB LP tokens, therefore, you must first purchase some CAKE and BNB tokens and contribute them to liquidity pools. Contributors must additionally pay a participation fee, which is subsequently turned into CAKE at the conclusion of the auction and burned.

How to prepare for using PancakeSwap

You must have a secondary wallet, often known as a non-custodial wallet, to utilize PancakeSwap. You will own and safeguard the wallet’s private keys with this form of wallet.

After creating a non-custodial wallet, you must setup the Binance Smart Chain network for the wallet. Article How to link your Metamask wallet to your Binance Smart Chain. For conducting transactions on PancakeSwap, you must send some BNB to your wallet as a charge. You may pay about 0.1 BNB if that is comfortable for you.

Yup! You are now ready to utilize PancakeSwap after configuring the Binance Smart Chain network for your wallet. Let us go to the next stage together!

PancakeSwap (V2)

Websites	pancakeswap.finance
Organic monthly visits	4,435,214 (94%)
Organic traffic rank	22 out of 347 (Cryptocurrency Exchanges)
Paid monthly visits	262,993 (6%)
Total monthly visits	4,698,207
Bounce rate	40%
Pages per visit	3.86
Average visit duration	00:04:49.2580000

Pros

Accepts Canadian clients

Accepts Japanese Clients

Accepts US Clients

Trading API

Cons

Negative balance protection

Social trading

Regulatory deposit insurance

Fees

PancakeSwap charges a 0.25% transaction cost and a 0.25% maker fee, with 68% of the revenue going to liquidity providers. The remainder is either donated to the PancakeSwap Treasury and burned, or used to purchase CAKE and then burned. With PancakeSwap, there are no transfer or withdrawal fees.

Traders pay significant network costs for utilizing computer resources to perform exchanges and transactions on DEXs. This network price is known as a ‘gas’ fee, and consumers may set a limit for how much they are ready to spend manually.

Leverage

PancakeSwap does not currently provide traders with the ability to trade on margin. That is on the company’s to-do list, so keep a look out for it in the future, but PancakeSwap stresses that there is no timeframe or sequence in which features or products will be offered next.

Mobile Apps

PancakeSwap does not have a mobile app. Alternatively, you can access the PancakeSwap ecosystem on mobile by downloading a number of different Android or iOS applications. Apps that are supported include WalletConnect, Trust Wallet, and Ledger Nano.

NFTs Discounts & Promotions

The gamification of the PancakeSwap ecosystem has increased the number of ways for users to earn prizes. One of them is in the form of non-fungible tokens (NFTs), which may be exchanged for Cash or held in a digital wallet. NFTs may be earned via team trading games in which users join one of three teams that compete to determine who has the most trading volume in a certain time period. NFTs may also be obtained via PancakeSwap airdrops, such as the “Bullish” Lunar New Year NFT, which was handed to the first 8,888 users who created accounts.

Lottery

There is also a lottery system called PancakeSwap that allows participants to win significant rewards every 12 hours. Tickets are purchased in Cash and cost roughly $5, but may be lowered if purchased in quantity. Each ticket is made up of six digits ranging from 0 to 9, such as 9-1-6-2-6-7. If the bought ticket contains the same numbers as the winning ticket in the same sequence, the jackpot (half of the entire lottery pool) is paid out. If just part of the numbers match, a portion of the jackpot is paid out based on the amount of numbers that match.

Customer Service

PancakeSwap does not provide formal customer assistance that you may contact. On the PancakeSwap website, there is a troubleshooting page that includes a list of frequent issues, such as “price impact is too large” or “PancakeSwap router has expired,” as well as remedies and explanations for why the errors happened.

If you have any queries or concerns about a mistake, you may seek assistance and support online by visiting financial news sites or contacting PancakeSwap’s official social media channels on Reddit, Twitter, Medium, Instagram, or Telegram.

You may also obtain assistance from the community on any of the above-mentioned social media platforms, 4Chan, Quora, Discord channels, or by viewing training videos on YouTube. They will be beneficial for other problems, such as “no provider was discovered” or “approving is stuck and not functioning,” for which there are no solutions on the official support sites.

Security

PancakeSwap has been inspected by cybersecurity company CertiK, so users may be certain that they are trading on a generally secure and dependable exchange. It is crucial to remember that there is always the possibility of a hack, such as when PancakeSwap went down due to a DNS hijack in March 2021. This danger is rather considerable, since half of all cryptocurrency-related thefts in 2020 targeted DeFi, according to blockchain research firm Chainalysis.

Fortunately, since PancakeSwap is a non-custodial DEX, it never keeps your assets directly, thus no hacker can take anything from you. But, you should be cautious of any scamming effort, since there have been reports of fraudsters emailing users and offering ’50 BNB giveaway airdrops’ or ‘400 CAKE airdrops’.

Conclusion of PancakeSwap V2 Review

Coincu introduced PancakeSwap V2 and how the project works above. Hopefully the article PancakeSwap V2 Review has helped you understand more about the project.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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