Friday, September 30, 2022
HomeDeFi NewsPancakeSwap: a DEX based on Binance Smart Chain

PancakeSwap: a DEX based on Binance Smart Chain

After using Uniswap and other DEXs on the Ethereum network for months and paying huge fees, I finally decided to try out PancakeSwap, the largest DEX based on the Binance Smart Chain (BSC). Looking at CoinGecko and CoinMarketCap I noticed that this new DEX is nowadays in the top 3 DEX with the highest volume in 24 hours and is about to reach even the undisputed king: Uniswap.

Pancake Swap – What it’s all about

First of all, it must be made clear that the project was launched by anonymous devs and that DEX is identical to SushiSwap. So in addition to common swaps there are many other options such as farming, community governance, IFOs (Initial Farm Offering) and many other features. As mentioned above, the blockchain that this new exchange runs on is BSC, so the tokens that can be swapped are BEP-20 standard tokens (be careful not to send ERC20 tokens). If you have used Uniswap or SushiSwap in the past, you will certainly have no problem using PancakeSwap, as the design is virtually identical (as is the process required to complete a swap).

How does Pancake Swap work

Simply go to the official DEX website and connect a wallet such as MetaMask, TrustWallet, Binance Wallet and so on. In this case, I prefer the Binance Wallet, as it is a wallet created specifically for the Binance Smart Chain. After that, you will need to deposit BNB tokens (the token used by default for fees and various swaps) and swap them into WBNB tokens. With the new WBNB token you will be able to swap with any BEP20 token that has some liquidity on Pancake Swap. But now comes the best part!

Unlike Ethereum and Uniswap, Pancake Swap is able to execute swaps (and other operations such as approving new tokens) in a few seconds and with absurd fees: 0.05 cents of a dollar! That’s right! If on Uniswap we need to pay 50-300 dollars for a swap (during peak hours), on PancakeSwap we only need 0.05 to 0.15 cents for any swap (at any time of the day). These revolutionary fees will surely help in the growth of the project at least until Ethereum solves the now unacceptable problems of FEES.

But it doesn’t end here

PancakeSwap has many other features such as staking and farming. If you visit the website you will find several pools with really high APYs. I had a look around and noticed some pools with APYs of 200-300%. Obviously, these APYs are only on pairs where there are tokens with volatile prices or low liquidity. Please do your research before investing too much money in tokens with very high APYs that could see their price drop dramatically. And finally, there is also an IFO section, which would be a fundraiser similar to the various IDOs (Initial DEX Offering). At the time of writing, there is a pending IFO which will be activated on February 16th. 

PancakeSwap is a fast-growing project and there are many tokens with enviable performances. I have checked and found several projects that have gone up 2000-5000%. Of course, the risk of losing everything is also very high! Be careful and DYOR!

Buy and sell Bitcoin and other cryptocurrencies on Bybit, the most comprehensive cryptocurrency exchange to safely and conveniently invest in the world's most traded cryptocurrencies. Sign up and see how simple it is, go to:

Follow the latest news about the cryptocurrency market at:

Google News | Facebook | Twitter | Telegram | Reddit 


- Advertisment -

Most Popular