PancakeSwap is the leading decentralized exchange on the BNB chain
and has been for quite some time.
But there is so much more to it, and especially with the latest 2022 updates.
There is a lot to explore and utilize PancakeSwap to its full potential.
On today's CoinMarketCap episode, we are taking a deep dove into
what is pancake swap, covering everything from how does pancake swap work
the nine different products it offers to 2022 updated PancakeSwap
tokenomics and the brand new perpetual trading option.
So make sure to stick around until the end of the video.
My name is Jett Gunther and let's get right into it.
So what is the easiest way to start using pancake slop?
Well, first get a BNB chain compatible wallet like Metamask
Then you get a BNB B-20P token and send it to your wallet.
Note that you'll need BNB B-20 for all transaction fees.
Connect the wallet through the Pancake Swap Connection Guide.
Choose the tokens you want to trade in the dropdown menu.
Click Swap and confirm the trade on pancake swap.
Once you're in, you can also swap BEP 20 tokens.
Stake CAKE in Syrup Pools.
Lend and provide liquidity on the automated market maker.
Participate in Initial Farm Offerings.
Engage in perpetual trading and trade.
NFTs on the NFTs marketplace.
After launching two years ago, pancake swap now has around 4 billion U.S.
dollars in total locked value.
Pancake Swap is anonymous, but that doesn't mean that it's shady.
Plenty of crypto protocols prefer to keep their founders anonymous.
Remember Satoshi and Bitcoin, right?
For pancake swap, this means that their team of anonymous chefs
work in their kitchen to build out their DeFi tools using the cake token.
Its platform is open source and has been audited by sure and slowest.
All right, so how does pancake swap work?
Pancake Swap has nine different products.
They are an exchange yield Farming, Syrup pools to state cake.
A version two of their lottery, a prediction market in NFT Marketplace
and NFT profiles system, initial Farm offerings and perpetual trading
on the exchange you can swap and trade BEP 20 tokens.
You can also add your token
to a liquidity pool to receive liquidity provider tokens.
Users need to remember to always research the tokens they are buying and selling.
Since pancake swap is a DeX anyone can list a token and provide
liquidity for its liquidity provider tokens provide you
with a share of the trading fee 0.17% on pancake swap.
However, it is important to remember that liquidity
providers are at risk of permanent loss.
You can also swap your tokens at your desired price with a limit order.
With yield forming, LPI token holders can earn cake
you can provide liquidity to any pool listed on the Farms page, state your
LP tokens and harvest your cake rewards for a small fee in the Syrup pools.
You can state cake and earn free tokens or more cake.
You can stick your cake and lock it for a specified duration,
where the longer you lock your cake, the more you earn.
When staking cake to earn more cake, you can choose between either
flexible staking or fixed term staking.
With both, you can simply state your cake tokens to earn more cake tokens
with no deposit fees, both staking options auto compound cake rewards for you.
Flexible staking allows users to state cake
and earn rewards with the ability to unstick whatever they please.
Fixed term staking allows users to maximize their yield and earn
even more cake by locking their cake for a period of time.
They choose earning a linearly boosted API compared to flexible staking.
With the lottery version too.
You can win prizes in cake by buying lottery tickets for a chance to win.
Each ticket has a six digit combination with each digit
being between zero to nine to win your numbers
need to match the drawn numbers in the same order as the lottery balls.
Starting from the left of the ticket.
The more numbers you match, the more you win.
The draw takes place every 12 to 36 hours and there is a maximum of 100
tickets per purchase.
But multiple purchases are allowed.
The lottery uses Chainlinks.
Implementation of VRM for true secure randomness.
Pancake swap prediction is a decentralized prediction market where you can guess
whether the price of BNB will rise or fall.
Each round lasts for 5 minutes and there is a 3% transaction fee.
If you guessed correctly, you win a proportional share of the payout pool.
The more you bet, the bigger your share.
Next, the NFTs marketplace is what it sounds like
an NFT marketplace for pancake swap and other BNB chain collectibles.
On top of this, you have the NFTs Profile system,
which allows you to create a personalized profile on pancake swap,
where you can share your achievements with friends and join other teams.
This setup cost 1.5 cake.
With initial form offerings, you can buy new tokens using cake.
Initial form offerings work like initial decks offering for users
can participate in raises of new tokens in exchange for committing their cake.
Some of the projects that were launched with initial four offerings
include mines of Dalarnia Froyo and Hot Cross.
Perpetual Swaps or perps
are a special type of futures contract without an expiration date.
And are offered by Pancake Swap in partnership with Apollo X.
Futures Trading allows users to enter leverage positions
on margin using borrowed funds to optimize capital.
Using leverage allows for a user to enter a position with a larger size
in their account balance.
In addition to leverage, futures opens the possibility of trading
in both directions, buying long and selling short perpetual.
Make sure you are subscribed to the channel
to not miss out on our video on perpetual swaps.
On Pancake Swap. In the next couple of weeks.
Now, let's talk about pancake swaps.
New Tokenomics.
In May of 2022, the team updated their tokenomics
in a few key ways a cap on the maximum total supply
of cake at 750 million additional utility for the cake token.
That includes weighted voting boosted farm yields boosted
if o allocations and future use cases.
As for the current burn mechanisms, there is no change a cap on the total
supply of cake is one way
that the pancake swap team balances scarcity and sustainability.
Based on this setup, the total supply cap had a very conservative estimate,
which gives the team a minimum of three years of emissions.
With this three year runway, the chefs will aim to implement
sustainable and effective ways to reduce emissions further, with the goal
of being deflationary or at the very least, emissions neutral.
And this runway
gives the chefs adequate time and space to engage with the community, implement
and battle tested by innovations to safely bring the latest and greatest
to the pancake swap community cake will also be used
for boosted governance, voting for users that permanently lock up their tokens.
The six term staking they will also benefit from boosted initial farm offering
benefits and boosted farm benefits by introducing these new features.
Pancake swap incentivizes steak and cake for longer periods.
This creates additional incentives for a smaller circulating supply.
Cake also retains all of its previous utility that is as a liquidity provider.
Mining reward as a lottery reward as the governance token and as the utility
token for lottery tickets and initial form offering token sales.
Pancake Swap has become the biggest DeX on the BNB chain
and one of the largest decentralized exchanges, and it doesn't seem like
it will stop growing.
So if you are using pancake swap or are considering it,
let us know in the comments below.