Pancakeswap
PancakeSwap is a decentralized exchange on the BNB Smart Chain with some of the highest trading volumes in recent times.
Ethereum has been the biggest player in the decentralized applications sector with most of the DeFi applications and exchanges being hosted on this blockchain. Under the Ethereum blockchain, Uniswap and SushiSwap are two of the major decentralized exchanges. However, increasing dependency on the Ethereum blockchain was leading to network traffic and gas fees.
PancakeSwap was developed to cater to the increasing demand in this space. Apart from swapping BEP20 tokens in PancakeSwap, users can provide liquidity, conduct yield farming, stake their crypto and make predictions to earn rewards.
How to Connect a Wallet on PancakeSwap Login?
Use the following procedure to connect a Wallet on the PancakeSwap Login platform. You must go through all the steps carefully to avoid any errors.
- To begin the process, you have to visit the MetaMask Wallet.
- Now, press the Network Selector option at the top of your screen.
- Then, Scroll down your screen and tap on the Custom RPC option.
- After that, a window will appear, and you need to add a few details.
- Network Name
- New RPC URL
- Chain ID
- Block Explorer URL
- Currency Symbol
- Once you enter the details correctly, head to the Save bar.
- To proceed, you need to go to the PancakeSwap Login website.
- Click on the Connect opinion appearing in the top-right corner of that page.
- Lastly, the window will be shown on your device, asking you to select the Wallet you want to connect to.
You have to move to the MetaMask Wallet.
How Does PancakeSwap Work?
PancakeSwap has eight different products:
- Exchange
- Yield Farming
- Syrup Pools to stake CAKE
- Lottery V2 version
- Predictions market
- NFT Marketplace
- NFT Profile System
- IFO (Initial Farm Offerings)
- Perpetual trading
- Like all other decentralized exchanges, PancakeSwap follows the automated market maker mechanism. Contrary to a traditional setup, a trader on PancakeSwap does not transact with another trader.
If you want to swap coins on PancakeSwap, you will be dealing with a liquidity pool. For instance, you want to swap certain units of coin A for equivalent units of coin B. You need to find a liquidity pool that has a combination of coins A and B. Once you deposit the relevant units of A, you can withdraw the equivalent units of B from the pool.
This mechanism makes the entire process free from any individual trader because the liquidity pool is a collection of funds. PancakeSwap allows traders to access these pools from anywhere across the world and use smart contracts to transact from them.
PancakeSwap has several useful features that make it an attractive platform for traders and liquidity providers.
Stake Tokens Using Syrup Pools
Staking is a great way to provide liquidity and earn rewards on PancakeSwap. Within a Syrup Pool, you can stake the native token of PancakeSwap which is called CAKE. Staking is a process where you can lock your crypto tokens in a liquidity pool to earn more tokens.
Fixed-Term Staking
In fixed-term staking, PancakeSwap allows the users to lock in their CAKE tokens for a specified period. You can add more tokens during the holding period and maximize your yield when you hold the tokens for a long time. There are no performance fees involved in fixed-term staking.
Flexible Staking
Flexible Staking in PancakeSwap reinvests the tokens held by a user automatically and compounds the returns for maximum yields. You can withdraw the tokens anytime after the first 72 hours by paying a fee of 0.1%. PancakeSwap also allows the users to convert all the staked CAKE into flexible or fixed-term staking.
A 2% performance fee is charged by PancakeSwap which is deducted automatically from each yield harvest.
Conclusion
PancakeSwap Login is the automated Market Maker that uses flexibility to earn high interest by giving liquidity. You can add liquidity and earn as several coins as you want. It additionally charges a lower price as compared to alternative exchanges. In short, you can take help from the top of the guide to understand the supported Wallet, benefits, how to connect Wallet, give liquidity, do farming, and earn CAKE on PancakeSwap Login.