Difference between revisions of "PancakeSwap"
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[[File:Pancakeswap.png|thumb|PancakeSwap]] | |||
PancakeSwap is an Automated Market Maker (AMM) on Binance Smart Chain. | PancakeSwap is an Automated Market Maker (AMM) on Binance Smart Chain. | ||
== PancakeSwap == | == PancakeSwap == | ||
=== PancakeSwap Exchange offers: === | === PancakeSwap Exchange offers: === | ||
* Swapping/Trading: PancakeSwap lets users trade without the need to go through a Centralized Exchange. Everything | * Swapping/Trading: PancakeSwap lets users trade without the need to go through a Centralized Exchange. Everything a user does on PancakeSwap is routed directly through their own wallet — no need to trust someone else! | ||
* Liquidity Pools: Users can only swap tokens on PancakeSwap if there is enough liquidity for those tokens. If nobody has added much liquidity for the token or tokens, it will be difficult, expensive, or impossible to do so. | * Liquidity Pools: Users can only swap tokens on PancakeSwap if there is enough liquidity for those tokens. If nobody has added much liquidity for the token or tokens, it will be difficult, expensive, or impossible to do so. | ||
* Liquidity providers will get LP Tokens, which allows to obtain rewards in the form of trading fees for making sure there's always liquidity for the exchange to use. | * Liquidity providers will get LP Tokens, which allows to obtain rewards in the form of trading fees for making sure there's always liquidity for the exchange to use. | ||
* Yield farming: | * Yield farming: Allows users that are providing liquidity earn CAKE rewards by locking their LP tokens into a smart contract. The incentive is to balance out the risk of impermanent loss that comes along with locking in your liquidity. | ||
* Initial Farm Offerings (IFOs): An Initial Farm Offering is an event that lets users buy into a limited-time offer to purchase new tokens. The IFO price is usually very generous. | * Initial Farm Offerings (IFOs): An Initial Farm Offering is an event that lets users buy into a limited-time offer to purchase new tokens. The IFO price is usually very generous. | ||
=== What are the fees? === | === What are the fees? === | ||
When user | When a user makes a token swap (trade) on the exchange they will pay a 0.25% trading fee, which is broken down as follows: | ||
* 0.17% — Returned to Liquidity Providers in the form of a fee reward. | * 0.17% — Returned to Liquidity Providers in the form of a fee reward. | ||
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* 0.05% — Sent towards CAKE buyback and burn. | * 0.05% — Sent towards CAKE buyback and burn. | ||
=== TVL <ref>https://defillama.com/protocol/pancakeswap</ref> === | === PancakeSwap TVL <ref>https://defillama.com/protocol/pancakeswap</ref> === | ||
[[File:Pancakeswap tvl.jpg|center|thumb|550x550px|Pancakeswap TVL History]] | [[File:Pancakeswap tvl.jpg|center|thumb|550x550px|Pancakeswap TVL History]] | ||
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# https://docs.pancakeswap.finance/products/pancakeswap-exchange | # https://docs.pancakeswap.finance/products/pancakeswap-exchange | ||
# https://docs.pancakeswap.finance/ | # https://docs.pancakeswap.finance/ | ||
<references /> | |||
[[Category:Protocols]] | |||
Latest revision as of 01:53, 4 July 2022
PancakeSwap is an Automated Market Maker (AMM) on Binance Smart Chain.
PancakeSwap
PancakeSwap Exchange offers:
- Swapping/Trading: PancakeSwap lets users trade without the need to go through a Centralized Exchange. Everything a user does on PancakeSwap is routed directly through their own wallet — no need to trust someone else!
- Liquidity Pools: Users can only swap tokens on PancakeSwap if there is enough liquidity for those tokens. If nobody has added much liquidity for the token or tokens, it will be difficult, expensive, or impossible to do so.
- Liquidity providers will get LP Tokens, which allows to obtain rewards in the form of trading fees for making sure there's always liquidity for the exchange to use.
- Yield farming: Allows users that are providing liquidity earn CAKE rewards by locking their LP tokens into a smart contract. The incentive is to balance out the risk of impermanent loss that comes along with locking in your liquidity.
- Initial Farm Offerings (IFOs): An Initial Farm Offering is an event that lets users buy into a limited-time offer to purchase new tokens. The IFO price is usually very generous.
What are the fees?
When a user makes a token swap (trade) on the exchange they will pay a 0.25% trading fee, which is broken down as follows:
- 0.17% — Returned to Liquidity Providers in the form of a fee reward.
- 0.03% — Sent to the PancakeSwap Treasury.
- 0.05% — Sent towards CAKE buyback and burn.
