Total trading volume in Q2 grew 77% QoQ, while Q3 volume grew 11.2% compared to Q1. While both try to incentivize locking governance tokens, CAKE locking chicken road provides more varied benefits like revenue sharing. Thanks to its focus on rewarding the community and long-term development, PancakeSwap looks well-positioned to capture a sizable share of the growth of Ethereum L2 chains. Pancakeswap innovates quickly and ships new products regularly. This is intended to provide a multi-year runway for emissions and incentivize locking up CAKE, making the token more valuable long-term.
Its operation on the Binance Smart Chain provides it with lower transaction costs and faster speeds than Ethereum-based DEXs. Additionally, its range of income-generating features provides users with multiple ways to earn rewards, which could help to attract and retain users. Farming and staking on PancakeSwap are straightforward processes that allow users to earn additional rewards on the platform. In addition to earning rewards, CAKE tokens also give holders the right to participate in the platform’s governance. This means that CAKE holders can propose and vote on changes to the platform, such as adding new liquidity pools or adjusting the platform’s parameters. PancakeSwap is a decentralized exchange (DEX) that operates on the Binance Smart Chain (BSC).
Token Metrics and Notable Investors
Meanwhile, market share in terms of DEX volume grew 110% from Q1 to Q2, and Q3’s market share grew 92% compared to Q1. The team behind PancakeSwap remains anonymous, which is not uncommon in the world of decentralized finance. Despite this, they have managed to build a platform that has gained significant trust within the BSC and the broader crypto community. To do so, you need to add liquidity to PancakeSwap to get LP tokens on the “Liquidity” tab. Now that you’ve imported the token to PancakeSwap, you’ll be able to swap BNB for it. To find the contract address of the token that you want to buy, you need to visit it on bscscan.com or coinmarketcap.com.
To kick off the program, LPs providing liquidity to the following Hook-enabled pools will start earning CAKE emissions. These Hooks have been selected because the developers have actively collaborated with the PancakeSwap team over the past year, ensuring they are well-built and ready for launch. The DeFi space is highly competitive, and there are many other DEXs vying for market share. Additionally, the upcoming upgrades to the Ethereum network could potentially make Ethereum-based DEXs more competitive in terms of speed and transaction costs. Finally, PancakeSwap’s IFO platform has become a popular launchpad for new projects on the BSC.
- In addition to trading and yield farming, PancakeSwap also offers a range of other features.
- In return, these liquidity providers receive LP tokens, which can be staked to earn additional rewards.
- Moreover, PancakeSwap’s additional features, such as yield farming and lottery games, have helped to attract a large and active user base.
- However, for Hooks to be effective, they need liquidity, which is where the CAKE Emission Program plays a crucial role.
- However, this PancakeSwap tutorial focuses on swapping BNB for another token.
- The inflation rate stands at 44.40%, which is relatively high compared to other tokens.
Understanding the CAKE Token
This resulted in a net reduction of 337K CAKE, reducing total supply by 0.086%. The program aims to address some Hook developers‘ challenges in attracting liquidity, even when creating impactful solutions. Any unused funds will remain within the Ecosystem Growth allocation. The CAKE token has a circulating supply of 144 million and a total supply of 965 million. The inflation rate stands at 44.40%, which is relatively high compared to other tokens. This high inflation rate is offset by the burning mechanism, which helps to reduce the overall supply of CAKE tokens.
Its operation on the Binance Smart Chain, combined with its range of income-generating features, make it a strong contender in the market. As such, PancakeSwap is a platform that any DeFi enthusiast should keep an eye on. Launched in September 2020, PancakeSwap has quickly risen to prominence in the DeFi space. Once you’ve deposited BNB into your Smart Chain address on Trust Wallet, you’ll be able to use PancakeSwap to swap BNB for another token. After you’ve tapped on “Select a currency”, you’ll see a list of tokens that you can swap BNB for. Now that you’ve connected Trust Wallet to PancakeSwap, you’ll see your address on the top navigation bar.
Now that you’ve created a wallet on Trust Wallet, you need to buy some BNB. Once you’ve downloaded Trust Wallet, you need to create a new wallet. On the withdrawal page, paste your Smart Chain address from Trust Wallet in the “Address” field, enter the amount of BNB that you want to withdraw, and withdraw it.
These include yield farming, where users can earn rewards by staking their LP tokens, and a lottery system, where users can buy tickets for a chance to win more tokens. One of the key features of PancakeSwap is its use of an Automated Market Maker (AMM) model. In this model, users trade against a liquidity pool rather than directly with other users.
Instead of using an order book to match buyers and sellers, PancakeSwap uses liquidity pools. These pools are filled by users who deposit their funds into the pool. In return, these liquidity providers receive LP tokens, which represent their share of the pool. When a trade is made, the liquidity pool automatically adjusts the prices of the tokens to ensure the pool remains balanced. V3 also introduces active liquidity farming, which rewards users in CAKE tokens when prices fall within the price ranges of their active liquidity positions.
Active threads
The current CoinMarketCap ranking is #82, with a live market cap of $970,049,056 USD. It has a circulating supply of 345,111,343 CAKE coins and a max. PancakeSwap has been pursuing a multichain strategy, which has seen the decentralized exchange and the CAKE token launch on different layer-one and layer-two blockchains. For example, staking 50 CAKE for 10 weeks out of the maximum 52 weeks would yield around 9.61 virtual shares in the revenue sharing pool (rCAKE). The longer the lockup, the higher the proportional share of trading fee revenues.
Income-Generating Features of PancakeSwap
Its low fees and fast transaction speeds have made it a popular choice among traders, particularly those who were priced out of Ethereum-based DEXs due to high gas fees. One of the newest and most innovative features added to PancakeSwap is the Position Manager. It introduces auto-compounding of rewards, thus all fees and rewards earned by the liquidity position are automatically compounded back into the pool. This exponentially grows a provider’s position over time through the power of compound interest.
As a result, liquidity providers can earn significantly more fees on the same amount of liquidity. PancakeSwap Infinity has launched the CAKE Emission Program to support Hook developers in building liquidity on PancakeSwap. Developers can deploy Hooks and receive ecosystem support to help grow their pools. Liquidity providers (LPs) who add liquidity to selected Hook-enabled pools will earn CAKE rewards automatically without any extra steps.
The amount of CAKE rewards each selected Hook-enabled pool will receive will largely correspond to the amount of protocol fees generated by the pool. In general, the more protocol fees they generate, the higher the CAKE emission they will receive. The PancakeSwap Kitchen will adjust incentives as necessary to ensure sustainable growth. As the DeFi space continues to evolve, PancakeSwap is well-positioned to remain at the forefront of this revolution.
- Users earn CAKE tokens as rewards for providing liquidity to the platform’s pools.
- Pancakeswap innovates quickly and ships new products regularly.
- In this PancakeSwap tutorial, you’ll learn how to use PancakeSwap with a wallet like Trust Wallet to swap BNB for another token.
- Farming and staking on PancakeSwap are straightforward processes that allow users to earn additional rewards on the platform.
- These features, combined with the low fees and fast transaction speeds offered by the BSC, make PancakeSwap a popular choice among DeFi users.
However, for Hooks to be effective, they need liquidity, which is where the CAKE Emission Program plays a crucial role. Finally, PancakeSwap offers an Initial Farm Offering (IFO) platform. Users can stake LP tokens to earn allocations of the new tokens.
Then, you can stake your LP tokens by navigating to the “Farms” page. Lastly, tap on “Swap” to swap BNB for the token that you’ve imported. To connect to a wallet, tap on “Connect” on the top navigation bar.
Other features include a VIP trading rewards program and position manager for easy single-click deposits. CAKE tokens can also be used to participate in PancakeSwap’s lottery system. Users can buy lottery tickets with CAKE tokens for a chance to win more tokens. This adds an element of fun and excitement to the platform and provides another way for users to earn rewards. Moreover, PancakeSwap’s additional features, such as yield farming and lottery games, have helped to attract a large and active user base.
HTX Learn and Earn PUMP Quiz Answers
Furthermore, the Position Manager handles gas fees and position rebalancing automatically, mitigating the risk of impermanent loss. Providers can supply liquidity in concentrated price bands to maximize fees from high trading volumes and choose strategies optimized for their risk tolerance. The CAKE Emission Program is designed to incentivize liquidity providers (LPs) by rewarding them with CAKE tokens. This initiative is part of PancakeSwap Infinity’s commitment to supporting Hooks—customizable add-ons for liquidity pools that enhance the trading experience. Hooks provide various benefits, such as trading fee discounts, dynamic fees, advanced liquidity controls, and more.
This has helped to foster a vibrant ecosystem of projects on the BSC, further cementing PancakeSwap’s role as a key player in the DeFi space. PancakeSwap is a decentralized exchange that allows you to swap BEP-20 tokens. The live PancakeSwap price today is $2.81 USD with a 24-hour trading volume of $170,173,792 USD.
These liquidity pools are filled by users who deposit their funds into the pool. In addition to trading and yield farming, PancakeSwap also offers a range of other features. It offers a range of other DeFi services, including yield farming, staking, and lottery games. Users can stake their LP tokens to earn rewards, or they can participate in PancakeSwap’s lottery system for a chance to win more tokens. These features, combined with the low fees and fast transaction speeds offered by the BSC, make PancakeSwap a popular choice among DeFi users.
