A beginner’s guide to PancakeSwap

Another food-themed DeFi protocol? You know it. PancakeSwap is a BNB Chain-based DEX launched by anonymous devs with an inclination for breakfast food varieties and rabbits.

It seems to be Ethereum’s SushiSwap (community administration, the ability to farm liquidity provider tokens), yet in addition consolidates numerous different features that let you earn rewards.

Introduction

The food-based farming frenzy has enraptured participants in the crypto space for quite a long time. In the most recent rush of DeFi protocols, we’ve seen various platforms emerge that allow users to stake their assets as a trade-off for the protocol’s tokens.

The heft of this activity has been concentrated on the Ethereum blockchain. As one of the earliest blockchains supporting smart contracts, it has a rambling community of users, developers, and tools for building powerful decentralized applications.

In this article, we’ll talked about PancakeSwap – a decentralized exchange based on BNB Chain.

What is PancakeSwap?

PancakeSwap is a decentralized exchange for swapping BEP-20 tokens.

The PancakeSwap exchange UI.

Acquainted with Uniswap or SushiSwap? Then, at that point, you’ll have no issue getting a handle on PancakeSwap – they are quite similar in their core design.

The PancakeSwap exchange

PancakeSwap uses a automated market maker(AMM) model. That means that while you can trade digital assets on the platform, there isn’t a request book where you’re coordinated with another person. Instead, you trade against a liquidity pool.

Those pools are loaded up with other users’ assets. They deposit them into the pool, getting liquidity provider (or LP) tokens consequently. They can use those tokens to recover their portion, in addition to a portion of the trading fees.

Along these lines, so, you can trade BEP-20 tokens, or add liquidity and earn rewards. There are additionally different features we’ll cover later.

You’ll track down these LP tokens in several flavors – assuming you added, say, BUSD and BNB to the pool, you’ll get BUSD-BNB LP tokens consequently. BETH and ETH? You’ll get BETH-ETH LP tokens.

Farming and staking on PancakeSwap

However, wait, there’s something else! PancakeSwap additionally allows you to farm its gevernance token – CAKE.

Yum.

On the farm, you can deposit your LP tokens, securing them in a process that rewards you with CAKE. Which LP tokens might you at any point deposit? Indeed, the rundown is quite long, yet here’s a tester of probably the most popular ones:

• CAKE – BNB LP
• BUSD – BNB LP
• BETH – ETH LP
• USDT – BUSD LP
• USDC – BUSD LP
• DAI – BUSD LP
• LINK – BUSD LP
• TWT – BNB LP

The rewards don’t end here, however! You can procure much more by staking your CAKE in SYRUP pools.

So you’ve deposited an assets to get LP tokens, and you’ve used them to farm CAKE. From that point, you can stake your CAKE and acquire different tokens through exceptional staking pools.

The biggest SYRUP pool is just for CAKE, where you can stake your CAKE to acquire much more CAKE! In any case, there are a lot more tokens you can procure by staking CAKE, so make certain to watch out for the SYRUP pool page.

Using PancakeSwap

You’ll notice assuming you visit https://pancakeswap.finance that many features are blocked off until you click on Unlock Wallet. Click on it, and you’ll be met with a couple of choices: MetaMask, Trust Wallet, WalletConnect, Binance Chain Wallet, and different choices.

Yet, wait, we hear you say, isn’t MetaMask an Ethereum wallet?

Indeed, it is, however the architecture of BNB Chain is to such an extent that you can use MetaMask to collaborate with BNB-based DApps. Assuming you decide to use MetaMask, we recommend you check out our Interfacing MetaMask with BNB Chain guide.

You can likewise interface your Trust Wallet to PancakeSwap through the Trust Wallet versatile program or on a desktop. Assuming you are interfacing with the Trust Wallet browser, you can follow these means:

1. Assuming you’re using the Trust Wallet DApp browser, make a beeline for the PancakeSwap website and tap the [Connect] button in the top right corner.
2. Select [Trust Wallet] to associate your wallet to PancakeSwap.

Assuming you have connected successfully, you ought to see your wallet ID in the top right corner.

Whenever you have that set up, you can unlock your wallet to uncover additional data. You’ll see that different LP tokens promise various returns. So how might you add liquidity?

In the event that you are connecting with a desktop browser, you can follow these means:

1. Go to the PancakeSwap desktop website and snap [Connect] in the top right corner.
2. Click [WalletConnect] to begin the connection process. Currently, the [Trust Wallet] button possibly works while using the Trust Wallet browser.

3. A QR code will show up, which is readable with the Trust Wallet application. Go to the [Settings] of the application tab and snap [WalletConnect]. Check the QR code displayed on PancakeSwap and click [Connect] in Trust Wallet.

Assuming that you have successfully connected, PancakeSwap ought to show you the beginning of your wallet ID in the top right corner.

Adding liquidity

Again, on the off chance that you’ve used any AMM already, you know the drill. To farm CAKE, you need to initially add liquidity to the exchange.

Navigate to Trade on the sidebar on the left, then click on Liquidity, hit Add Liquidity, and select the token pair that you need to deposit. Likewise, ensure you realize about impermanent loss prior to adding liquidity to a pool.

Adding liquidity to PancakeSwap.

Farming

Alright, so you have your LP tokens, now it’s chance to stake them to procure CAKE. Navigate to the farms tab, and select the choice that matches your LP tokens.

Similarly as with ERC-20 tokens, you’ll have to support the movement of BEP-20 tokens – this is what allows the agreement to withdraw them for your sake. At the point when you click Approve Contract a popup will request that you affirm the transaction and display a fees.

When that transaction confirms, simply select the amount you need to stake and affirm it. You can explore away from the page and come back whenever to check the amount CAKE you’ve acquired – to collect your awards anytime, click on Harvest and affirm the transaction.

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Staking

Whenever you have CAKE, you can stake it in SYRUP pools. Go to the Pools tab, and you’ll be given the pools where you can stake your CAKE.

SYRUP pools – stake CAKE, procure new tokens.

By and by, you need to approve the withdrawal of your tokens. Hit Approve CAKE to do as such. At the point when that has been approved, you’ll have to choose the amount of CAKE you need to stake.

Since the CAKE has been staked, you’ll acquire the prize token of the pool inactively. On the off chance that you might want to cash out your rewards, click on Harvest.

Lottery

That’s perfect, yet what else could you at any point do with your CAKE? Indeed, you can enter a lottery on PancakeSwap.

Try your luck in the PancakeSwap lottery.

Every lottery session requires 6 hours. One ticket costs 10 CAKE, which will give you an irregular four-digit blend of numbers somewhere in the range of 1 and 14, for example, 12-8-4-3. To win the jackpot (50% of the entire lottery pool), the numbers in your ticket need to match every one of the four numbers similarly situated as the winning ticket.

What on the off chance that you don’t match every one of the four? No problem. You additionally win rewards in the event that two or more of your numbers are similarly situated as the numbers in the winning ticket.

NFTs

Wait, so you can do considerably more with PancakeSwap? Indeed, you can win unique NFTs.

Win probably the cutest NFTs on BNB.

In the event that you’re picked as a winner of an NFT, you can trade it for the CAKE esteem it addresses or keep the cutie in your wallet as a collector’s item.

How might you reach out? You want to register for an opportunity to win, and the winners get picked indiscriminately. Try to watch out for the NFT page for impending opportunities.

Teams & profiles

Searching for more gamification? Teams and profiles are your opportunity. You can flaunt your details by creating a public profile, and go along with one of the groups to vie for team accomplishments!

IFOs

Initial Farm Offerings(IFO) are a method for getting a recently launched token in the possession of users utilizing the power of yield farming. On PancakeSwap, you can do that by committing LP tokens from an upheld pool to gain admittance to the offer of a recently launched token.

You can check the currently active IFOs on PancakeSwap on the IFO page.

Is PancakeSwap safe?

PancakeSwap has been audited by CertiK.

Does that mean it’s totally protected to use? No. Depositing assets into a smart contract generally conveys the gamble of bugs, in any event, for audited and profoundly respectable projects. Never deposit more than you can afford to lose.

Closing thoughts

PancakeSwap is the biggest AMM project on BNB Chain with a few creative features. You can likewise follow a great deal of its measurements on https://pancakeswap.info/.

Ethereum may have kickstarted the DeFi pattern, yet initiatives like PancakeSwap recommend that the flood of advancement is bound to spread to different chains.

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