March 1, 2021
This CAKE seemed so yummy that it bloomed recently. I have learned about this coin from @PVMihalache and many thought it has the potential to grow in the future.
As I DYOR about it, I stumbled on this article of https://cointobuy.io/pancakeswap. Based on their analysis about pancakes was, it has a +72.7% expected return with the potential price of $16.23.
The Twitter Citation rank of 100/100 and social media following rank of 73/100 gives the strongest factors for this. Its historical charts also show that CAKE has a strong possibility to reach an all-time high price again in the future.
What is Pancakeswap, and why are people buying a piece of CAKE lately?
PancakeSwap is a decentralized exchange used for swapping BEP20 tokens on Binance Smart Chain (BCS). To get a grasp about it, PancakeSwap is similar to UniSwap and SushiSwap but incorporates more features that let the users earn rewards.
Just like the others, this food-based farming craze has attracted users in the crypto space recently and allows the users to stake their funds to get the protocol’s tokens in return.
The PancakeSwap token CAKE was launched in September 2020 on Binance Smartchain (BSC). The CAKE's main function is to incentivize liquidity provision to the PancakeSwap platform.
What is good in PancakeSwap?
The PancakeSwap exchange
PancakeSwap uses an Automated Market Maker (AMM) model where users can trade against a liquidity pool. The pools are filled with users’ funds and users receive liquidity provider (LP) tokens in return. The tokens can then be used to reclaim their share and get a portion of the trading fees. So we can trade BEP-20 tokens, or add liquidity and earn rewards.
Adding Liquidity
You need to add liquidity first to the exchange to farm CAKE.
Simply go to the menu bar, then click Trade.
Click Liquidity and Add Liquidity, and select the token pair that you want to deposit.
Tap the 'Unlock Wallet' button and you will see some options like TrustWallet, Binance Chain Wallet, WalletConnect, and even an Ethereum wallet Metamask is included.
Tap the 'Learn how to connect' if you wish to know how to perform the method.
And make sure that you know about impermanent loss before adding liquidity to a pool. PancakeSwap LPs can also earn FLIP tokens, which can be staked too!
Farming
PancakeSwap also allows users to farm its governance token – CAKE such as:
CAKE – BNB LP
BUSD – BNB LP
BETH – ETH LP
USDT – BUSD LP
USDC – BUSD LP
BCH-BNB LP
DAI – BUSD LP
LINK – BUSD LP
TWT – BNB LP
And more...
Once you have deposited your LP tokens, you can lock them up and earn CAKE in return. For example, CAKE – BNB LP will let you earn 128.94% APR and has total liquidity of $425,293,930. The BOR-BNB LP has 671.39% APR and total liquidity of $4,106,359. And I found BCH-BNB LP with 77.64% APR and total liquidity of $8,874,156. To do that;
Just simply navigate to the Farm section and choose an option that will match your LP tokens.
Click 'Approve Contract' and a transaction page with the corresponding fee will appear.
Confirm the transaction and choose an amount you want to stake.
You can harvest your CAKE rewards at any time by just clicking the 'harvest' button.
And at the time of writing, 71 different governance-tokens can be farmed on PancakeSwap.
CAKE Staking on Syrup Pool
There is more here, PancakeSwap allows users to earn more. This is such a yummy CAKE! Users can stake their farmed CAKE on the Syrup Pool to earn new tokens or the CAKE itself and rewards are calculated per block. You can currently earn this list of tokens on their Syrup POOL, and of course, it includes the CAKE itself.
CAKE Pool
BOR Pool
bOPEN Pool
DODO Pool
SWINGBY Pool
BRY Pool
ZEE Pool
SWGb Pool
SFP Pool
LINA Pool
LIT Pool
HGET Pool
BDO Pool
UST Pool
DITTO Pool
And there's good news! Because CAKE can be bought on exchanges now like Binance. You don't need to Farm to get CAKEs.
All you need to do is to deposit your CAKE to your TrustWallet account.
Then, navigate to the Syrup Pool and choose the token where you want to stake your CAKE.
Hit the 'Approve Cake' button and confirm your transaction.
You can unstake your cake and harvest your rewards anytime.
By the way, on the CAKE Pool, you can compound your earned CAKE to get more CAKE. Just tap the 'Compound' button and you're good to go.
Note:
In farming and staking on PancakeSwap, you need to have BNB on your TrustWallet to pay the fees.
Some farmers are roaming around the pool to look for a token with a higher APR. So if you want to earn more different tokens using your CAKE, you can unstake it from the current pool then move to another pool to earn another token. You can do it once you have gained enough from your current pool. By this process, you will be able to earn different tokens using your CAKE. You may choose the pool with a higher APR to get higher rewards. Or you can simply spread your CAKE on different pools to earn different tokens at a time.
Lottery
The PancakeSwap also has a lottery where users can spend some of their CAKE to get a chance to win additional prizes. Each lottery ticket costs 10 CAKE and there is no entry limit for this. The users will get a random 4 digit combination with each digit between 1-14 for every ticket they bought. They can also choose to enter a multiple of 10 CAKE, which will buy them multiple tickets.
How to win:
To win the lottery jackpot (50% of the entire lottery pool), participants need to match all 4 winning numbers on their tickets in the same position. It is the same process in betting on a lottery in the real world. And if you don’t match all 4 winning numbers, you still have a chance to win as long as you match 2 or more numbers in the correct position.
To know further details about their lottery, you can visit these links:
https://docs.pancakeswap.finance/lottery-1?_gl=1
https://docs.pancakeswap.finance/how-to-take-part-in-the-pancakeswap-lottery
Initial Farm Offering (IFO)
Users can also take part in the IFO where they can buy new tokens using CAKE-BNB LP tokens.
The project gets the BNB, PancakeSwap burns the CAKE then participants will get the tokens.
Participants need CAKE-BNB LP tokens to participate.
CAKE tokens equating to half of the total funds raised will be burned forever: If the full $1,000,000 USD allocation is raised, then $500,000 of CAKE tokens will be burned.
You can also lauch your project with PancakeSwap, Binance Smart Chain’s most-used AMM project and liquidity provider, to bring your token directly to the most active and rapidly growing community on BSC.
To know more about IFO, simply visit this link: https://pancakeswap.finance/ifo
Is it worth to buy a piece of CAKE?
At the time of writing, the PancakeSwap is tradable at $9.55 USD with a trading volume of $310,091,020 and a live market cap of $1,202,116,626 USD. It has a circulating supply of 125,867,114 CAKE coins.
The CAKE rose its rank from #691 last October 2020 to #51 this year on CoinMarketCap. And from its lowest price $0.0002318 last September 2020, it has able to surpass the $1 price after a month but eventually goes down back to cents. However, this year, it continued to go up from $1.22 last January 25th to its ATH price of $21.41 just 10 days ago. And it is a big surge in just a month. It is currently down though due to the market crash, but the same with other coins, it will eventually recover.
You can check its historical data of PancakeSwap here: https://coinmarketcap.com/currencies/pancakeswap/historical-data/.
CAKE STATS on PANCAKESWAP:
Total CAKE Suppy: 126,323,867
Total CAKE Burned: 74,465,372
New CAKE/block: 25
Total Value Locked (TVL): $2,914,371,172
(Across all LPs and Syrup Pools)
Closing Thoughts:
PancakeSwap has been audited by CertiK by it does not mean that it's safe. Well, any investment in a smart contract really carries the risk of bugs. So do not ever invest more than what you can afford to lose.
And PancakeSwap is the biggest AMM project on Binance Smart Chain (BSC) with some innovative features. With its good performances based on its historical data and analysis, the coin really has a big potential to grow in the near future. The more project launch on its IFO and Pools, the higher the demand, and the more chances to drive its price higher.
So there's no harm in trying to bite a piece of CAKE 🥞. It's tasty anyway with its different flavors of Syrup Pool that anyone would love to take a spoon of it.
Reference:
https://www.google.com/amp/s/academy.binance.com/en/articles/a-guide-to-pancakeswap.amp
Disclaimer:
I am not a financial advisor and this
the article is for educational purposes
only.
Always make your own due diligence when
investing in cryptocurrencies.
Any investment involves high risks,
so do not invest more than what you
can afford to lose.Thanks for reading @Jane
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