Among the earliest AMMs on BSC, Pancakeswap was launched in January 2012. A few days after the Binance Smart Chain mainnet launched, the Binance Smart Chain project was launched.
In its first piece, AMM Pancakeswap forks Uniswap V2 and produces its own set of features. With the BSC platform, Pancakeswap, however, has much shorter transaction times and significantly lower transaction costs than Uniswap, which has helped Pancakeswap attract a large number of small, low-capital investors.
AMM was one of several products produced over time by the project. Others include Syrup Pools, IFO, Lottery, Team Battle, and others. A vast number of customers, investors participate in all of them, making them highly successful.
Over time, Pancakeswap has gradually evolved from a forked AMM to one with the highest trade volume and TVL.
Here are five reasons why PancakeSwap is gaining popularity:
1. PancakeSwap solves quite a few problems
A critical role is served by PancakeSwap at this moment. Platforms help to resolve various issues plaguing the market at the moment. Uniswap’s current leader in DeFi and DEX, PancakeSwap, has secured its position as an attractive alternative due to its innovative approach and commitment to security.
2. Focuses on centralization
Essentially, PancakeSwap deals with the problem of market centralization. Everyone agrees that the blockchain was the birthplace of the DeFi revolution. Most tokens are based on ERC-20. After the 2017 ICO craze, the standard was quickly adopted. DeFi (decentralized finance) platforms started launching on the ERC-20 network in 2020 — a major boost for the ERC-20 token.
From the outside, all this development seems great, but once you get into the market, you realize there are a couple of problems. In addition, Ethereum is still plagued with problems of scalability, as it is a Proof-of-Work (PoW) network. As the network becomes congested, transaction delays and fees increase.
The Ethereum Virtual Machines (EVMs) are executed by network nodes based on a processing fee known as Gas. As a group of smart contracts, EVMs enact certain actions. There’s no denying that Ethereum is busy these days. Consequently, the cost of completing a transaction has increased. In 2021, a typical transaction has cost $20 in GAS. Further, it takes around five minutes for trades to be completed on the network.
3. Pancake swaps offer many benefits
This is all eliminated by using PancakeSwap since it leaves the Ethereum ecosystem. All of these actions can be streamlined with Binance Smart Chain, which provides users with a more cost-effective option. DEXs have been increasingly competing with one another in the face of these strategies
- Selection: Adding new tokens to users’ accounts is another major advantage. The deposit features of PancakeSwap enable users to move USDT, BTC, BUSD, and ETH from ETH chains to the BSC chains. The market’s top projects are all available to you. The website is also home to a variety of extremely rare and hard-to-find projects, including exclusive tokens for the BEP-20 cryptocurrency.
- Interconnectivity: Keeping the two blockchains interconnected was one of PancakeSwap’s greatest concerns. Since the majority of PancakeSwap’s users were Ethereum users, the developers streamlined the process for them in an effort to streamline the process for these users as well. Platforms were developed in order to support popular wallets, including Trust Wallet, TokenPocket, WalletConnect, MathWallet, and MetaMask. As a result, MetaMask was a leader in the cryptocurrency sphere, as their wallet was developed to support ERC-20 as well as BEP-20 tokens.
- Simple to use: Unlike other popular DEX’s, PancakeSwap’s interface is very similar to other popular DEX’s. There is no need for prior experience in order to navigate through the basic functions of the platform. Profits can be maximized through the platform. The liquidity pools will lend you digital assets in return for liquid tokens that you can stake for even greater profits.
4. A Pancake Swap transaction is cheaper than a normal transaction
PancakeSwap’s low fees are perhaps its biggest draw. Due to its upgraded technical capabilities, the network is not dependent on gas prices. With PancakeSwap, you can make trades with minimal cost that is comparable to Ethereum-based AMMs like Uniswap and SushiSwap. PancakeSwap costs around $0.08 on average for each transaction.
5. PancakeSwap is Faster
As a result of the BSC, users can also trade faster. A PancakeSwap user’s transaction typically completes within five seconds. Arbitrage trading is made easier by faster transaction times because they provide more opportunities to earn money. Furthermore, they reduce the possibility of slippage and keep traders ahead of trends.
The PancakeSwap $CAKE token captures value
The PancakeSwap products are Pancake’s core products and it is these products that generate the most revenue. In terms of TVL and Volume, Pancake Swap currently has the highest revenue among DEXs.
Buyback & Burn of $CAKE tokens will incur a transaction fee of 0.03% in Pancake V1. Pancakeswap V2 increased this percentage to 0.05%, representing a 66% increase.
The transaction fee will be used to purchase $CAKE every Monday, which will provide a variety of benefits, including:
Every week, $5CAKE tokens receive an increased level of Buy Demand.
The market should be given less $CAKE.
PancakeSwap’s growth will lead to steep increases in the $CAKE price. Pancakeswap and its $CAKE token receive value directly from this product.
Among all the products in the Pancake ecosystem, PancakeSwap is the most focused and offers many user incentives.
Price Prediction for CakeSwap (CAKE) in 2021: Where will it go?
In the wake of an approximately $2.75 million lottery giveaway, cryptocurrency exchange PancakeSwap (CCC:CAKE-USD) is trading higher today. Over 25% has been gained in the CAKE-USD exchange rate.
Unlike other automated market makers (AMMs), PancakeSwap enables users to make trading decisions against a liquidity pool (LP) to exchange cryptocurrencies. PancakeSwap received LP tokens from other users who loaned funds to liquidity pools. Tokens of those LPs can be redeemed for the original investment, plus a fraction of the transaction fees that capital accrued in the liquidity pool.
The platform’s governance token, CAKE, can also be farmed with LP tokens. CAKE can then be staked to farm other tokens, including more CAKE, or used to purchase tickets for the platform’s twice daily lottery. It is an Ethereum (CCC:ETH-USD)-based cryptocurrency based on the Binance Smart Chain, and its popularity was initially due to the high GAS fees it incurred.
Secure & User Friendly!
Security has always been a priority for PancakeSwap. The platform is a non-custodial DEX, which means the assets are never held in large hot wallets. The reason for this is the fact that DEXs are much more secure than centralized exchanges. A few steps were also taken by the platform to help promote its reputation for security. Among other companies, PancakeSwap underwent an independent third-party audit by CertiK, an established cyber-security firm.
Security on the platform is enterprise-level, as confirmed by the audit. The opportunity to expand PancakeSwap was also gained. These includes CertiK Shield, Security Oracle, and DeepSEA. It has never been hacked, despite being relatively new.
What do you think about this project after reading the article about the Pancakeswap the nature, and the potential development of this project? How likely is it that Pancakeswap will continue to be the AMM with the most TVL and Volume? We would appreciate it if you left your comments below so that we can discuss it further.