What is PancakeSwap (CAKE)
PancakeSwap is a decentralized exchange (DEX) that allows for instant swaps between BEP20 tokens. It runs an automated maker market algorithm.
Anyone can participate in the network, only needing to connect their wallet to get started. It’s also 100% non-custodial, allowing users full control of their tokens, unlike centralized exchanges. Gas fees are comparably lower than swapping ERC-20 tokens on Ethereum.
PancakeSwap got started on the BNB chain on 22nd September 2020. It was the third food-based DeFi Farm, following the launch of Sushi and Pancake. The developers planned to leverage a gamified farming mechanism to make the platform fun, but with the serious goal of becoming the leading liquidity provider. Names behind the founding team have remained anonymous, instead preferring to use pseudonyms denoted by the title, “Chef.”
The CAKE token, the native utility token of the PancakeSwap platform, encourages users to supply liquidity in the form of other BEP20 tokens to facilitate swaps.
Users can earn on the network from pools and farms. The network also runs trading competitions, predictions (BETA), and lotteries. It’s also possible to buy and sell NFTs built on the BNB Smart Chain.
What is special about CAKE?
CAKE runs the Pancake crypto ecosystem. The coin draws its significance because users simply love using the exchange. That’s attested by the 3.1 million users who flocked to the platform in March 2022, making over 44 million trades. It’s not clear what draws them; friendly branding, fun interface, lottery jackpot, or the rabbit mascot.
Holders of the CAKE token can also use it in myriad ways. Staking in Syrup pools —with auto-compounding or manual CAKE— entitles users to free tokens.
Auto-compounding makes the staking process less tedious. CAKE holders can simply stake and forget about reinvesting earned tokens manually. Other users trigger the compounding feature, earning a small performance fee (which is 2% of the yield harvest).
Yield farming allows market participants to earn CAKE by staking LP tokens. The platform rewards LP tokens to users who have provided liquidity to various pools in token pairs issued by other dApps on the chain, such as BUS-BNB, GMY-USDC, etc.
CAKE holders can participate in Initial Farm Offerings (IFO) to earn external tokens. They can ratify proposals, giving them a say in the governance. CAKE can buy lottery tickets where users stand a chance to win up to 2000 CAKE.
Overall, good rewards, multiple applications, and the token’s popularity make the CAKE token special.
Does CAKE have investment potential?
CAKE’s viability as a potential investment relies on the usefulness of the PancakeSwap platform, which is hugely dependent on the viability of the BNB chain and its ecosystem of dApps. There can be no one without the other, as Pancake facilitates token swaps on the chain.
A good place to start when analyzing the investment potential is checking where the ecosystem as a whole is headed. For instance, when the Binance Smart Chain merged with the Binance Chain to become the BNB chain in early 2022, there was a positive correlation in the value of CAKE and other BEP20 tokens.
You can further analyze the stability of other ambitious projects such as Tranchess, Swipe, Mobox, Origin Protocol, and more. The popularity and usefulness of projects on the BNB chain play a role in CAKE’s investment potential.
The chain’s native coin, BNB, consistently ranks among the top coins by market capitalization alongside Ethereum, Tether, and USD Coin. Sentiments about the Binance centralized crypto exchange may be weighed.
While CAKE has investment potential, CAKE remains a risky investment as with other cryptocurrencies and tokens. As a measure of its volatility, the price hit a high of $41.14 on 30 April 2021 before plummeting to $10.6 roughly a month later.
How many PancakeSwap (CAKE) coins are in circulation?
As of March 2022, the circulating supply stood at 284 million. Pancake coin doesn’t have a limit on token distribution. It has a daily emission rate and burns tokens by removing them from distribution. The project aims to have more burns than emissions.
How exactly is the PancakeSwap network secured?
Overall, the BNB Smart Chain runs on Proof of Staked Authority (PoSA). Anyone can run a validator, but only the top 21 validators based on the staked coins become part of the validator’s set.
PancakeSwap stays secure by making all its smart contracts public. It adopts smart security practices, including hashed timelock contracts and multi-signature wallets. All chefs must agree on any action in the dApp before its execution. The platform has passed multiple security audits. The main vault adopts anti-flash loan protection.
How can I earn PancakeSwap Coins?
If you don’t have any CAKE but have other BEP20 tokens, you can contribute them to a liquidity pool to earn LP tokens. Staking the LP tokens on Yield farms allows you to earn CAKE. Through syrup pools, you can stake the CAKE to make more CAKE.
Buying CAKE with fiat currencies is also possible. Wondering where to buy Cake Crypto? Choose Changelly as the best place to buy CAKE. The process is as simple as it can be and fast.
Can I buy CAKE with a credit card?
You can easily buy cake coins with your credit card on Changelly — facilitated by fiat-to-crypto partners (IndaCoin, BANXA, MoonPay, and Simplex). Our partners are highly reputed and experienced.
Can I buy CAKE with a debit card?
Questioning how to buy cake crypto with your debit card? Worry no more. Initiate a secure transaction by creating a free Changelly account. Choose your fiat currency and location to see the best offers from our partners.
Can I buy CAKE with PayPal?
Buying Cake with PayPal is possible on an exchange platform that accepts PayPal as a payment means. We have not yet added support for PayPal.
Where can I store CAKE coins?
Store your CAKE coins on any wallet that supports BEP20 tokens. Some top wallets for CAKE include Metamask, Trust Wallet, MathWallet, TokenPocket, Coin98, and Blocto. Some decent hardware wallets for CAKE include SafePal, Trezor, and Ledger. Take time to assess the suitability of each wallet based on your needs.