How to join the Binance Exchange
A PancakeSwap Guide
Another DeFi protocol on the subject of food? You know it. PancakeSwap is a Binance Smart Chain-based DEX created by anonymous developers with a preference for breakfast foods and rabbits.
The food-based farming hype has captivated participants in the crypto scene for months. In the recent wave of DeFi protocols, numerous platforms have emerged that allow users to use their money in exchange for the protocol's tokens in the staking process.
What is PancakeSwap?
The UI of the PancakeSwap exchange.
The PancakeSwap exchange
These pools are filled with the funds of other users. You put them in the pool and receive liquidity provider tokens (or LPs) in return. You can use these tokens to reclaim your stake plus part of the trading fees.
So, in short, you can trade BEP-20 tokens, or add liquidity and earn rewards. There are other features as well that we'll cover later.
You can find these LP tokens in different flavors - if you have, say, added BUSD and BNB to the pool, you will receive BUSD-BNB LP tokens in return. BETH and ETH? You will receive BETH-ETH LP tokens.
Farming and staking on PancakeSwap
But wait, there's more! PancakeSwap also allows you to farm its governance token - CAKE.
At the farm, you can deposit your LP tokens and lock them in a process that will reward you with CAKE. Which LP tokens can you deposit? Well, the list is pretty long, but here's a taste of some of the most popular:
- 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 earn even more by using your CAKE in the so-called SYRUP pools in the staking process.
So you deposited some money to get LP tokens and you used those to farm CAKE. From there you can use your CAKE and earn more tokens through special staking pools.
But wait, you're probably asking: isn't MetaMask an Ethereum wallet?
Once you've set this up, you can unlock your wallet for more information. You will see that different LP tokens promise different returns. So how can you add liquidity?
Again, if you've used an AMM before, you'll know how to do it. To farm CAKE, you first need to add liquidity in the exchange.
Adding liquidity to PancakeSwap.
As with ERC-20 tokens, you must approve the transfer of BEP-20 tokens - this allows the contract to withdraw them on your behalf. When you click on "Approve Contract" a popup will ask you to confirm the transaction and a fee will be displayed.
Once the transaction is confirmed, simply select the amount you want to stake and confirm it. You can leave the page and come back anytime to check how much CAKE you've made - if you want to receive your rewards at any time, click "Harvest" and confirm the transaction.
SYRUP Pools - by staking CAKE you earn new tokens.
Again, you will need to approve the withdrawal of your tokens. Click "Approve CAKE" to do this. Once approved, you will need to select the amount of CAKE that you would like to wager in staking.
Now that your CAKE have been staked, you passively earn the pool's reward token. If you want to cash out your rewards, click on "Harvest".
That's great, but what else can you do with your CAKE? Well, you can take part in a lottery on PancakeSwap.
Try yours in the PancakeSwap lottery.
Each lottery session lasts 6 hours. A ticket costs 10 CAKE, with which you receive a random four-digit number combination between 1 and 14, for example 12-8-4-3. To win the jackpot (50% of the total lottery pool), the numbers on your ticket must match all four numbers in the same position as on the winning ticket.
What if all four don't match? Do not worry! You win even if two or more of your numbers are in the same position as the numbers on the winning ticket.
Wait a minute, so you can do more with PancakeSwap? Exactly, you can win special NFTs.
Win some of the cutest NFTs on BSC.
If you are selected as the winner of an NFT, you can exchange it for the corresponding CAKE value or keep the treasure and keep it in your wallet as a collector's item.
Teams & Profiles
Are you looking for more gamification? Teams and profiles are your chance. You can impress with your stats by creating a public profile and joining one of the teams to get rewarded for team achievements!
Is PancakeSwap Safe?
PancakeSwap has been tested by CertiK.
Does that mean it's completely safe to use? No. Paying funds into a smart contract always carries the risk of programming errors, even with verified and highly reputable projects. Never deposit more than you can afford to lose.
Ethereum may have started the DeFi trend, but initiatives like PancakeSwap suggest that the wave of innovation will spread to other chains as well.
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