Pancakeswap is a decentralized exchange and automatic moneymaker that started its activity in September 2020. It was created by anonymous founders on the basis of the Binance Smart Chain similar to Uniswap that was initially founded on Ethereum. It even resembles Uniswap in such features as community governance and the capability of farming LP (liquidity pool) tokens.
The founders of the facility have solved the problem of liquidity with the help of liquidity farms supported by the members of the community who can contribute to the pool. It’s necessary to deposit both cryptocurrencies that enter a trading pair to add tokens and earn on liquidity farming. This method of earning is often chosen by users who want to get higher APY. Contributors should beware of risks and understand that there can be sudden losses. Though the risk is huge, there is also a possibility to earn up to 1000% ROI if users are lucky.
It’s worth mentioning that APR is a dynamic parameter on the platform. Such aspects as the amount of liquidity contained in the pool along with the fees paid are basic parameters that determine the fee. Depositing LP tokens means locking the assets up to get ultimately CAKE for it. The difference is that they can’t be unlocked at any time as in the case with pools which means that your funds are frozen until the end of the term.
It’s also possible to stake CAKE in Syrup pools. When members of the community stake CAKE, they get rewards for it obtained from CAKE emissions. Users are rewarded with 10 CAKE tokens for each block. The project teams sponsoring Syrup Pool provide these rewards. It’s also possible to earn diverse tokens in the syrup pool, and not be engaged in staking CAKE only.
Alongside with it, PancakeSwap has introduced the lottery with the peg ticket price to 1 USD, where users spend their CAKE tokens to win more of them in case they succeed. This gamification feature makes users’ participation entertaining with the transparency of data being one of its advantages. The participants can see the winning numbers, the size of a prize pool, and the number of burned tokens. At the time of writing, the lottery V2 is going to be launched soon.
In February 2021, the platform launched NFT profiles and the points system. The platform also offers its collection of NFT characters which have a redeemable value in CAKE. Apart from the artistic value, these collectibles also mature in time thus adding allure to investors.
The platform arranges regular competitions for the members of the community. For instance, in April 2021, Easter Battle was arranged with over 200,000 USD in prizes. The participants of the battle had to trade the specified pairs during the battle time period. The rank of participants grew with the volume. The prize was a limited edition NFT with only 500 items minted. NFT presented a 3D animated mascot that the winning team featured on the top of the trophy.
The team is also working over the lending and borrowing process. It is planned to use fees obtained from it to buy back and burn CAKE.
On April 22, 2021, the platform made an announcement of its migration to a new V2 LP contract. It means that all LP tokens migrated as well. Those who integrated with PancakeSwap had to migrate tokens to a new location as well which caused inconvenience.
The team says that PancakeSwap was a Minimum Viable Product (MVP) at the point of its launch and that there was no possibility to tailor the contracts to the needs of consumers. When the migration feature was developed, it provided the capability of the contract upgrade. Without migration, future updates wouldn’t be available. In this way, migration enabled the introduction of such new features as a referral program, the addition of burn mechanics to trading fees, and buy-back. The Syrup Pools received the capability of auto-compounding, customizable minting, and other features. Using the auto-compounding feature, there is no need to re-stake CAKE manually for token holders to obtain the best APY. This is done automatically by the system.
The team of the company also relaunched its PancakeSwap info. It was fully synchronized with the previous version and considerably improved. The information section of the platform presents an overview of the market situation and analytics that can be helpful for users of the platform before making important financial decisions. It’s possible to check the top tokens after the migration so as to determine the popularity of assets and analyze trends of the period. The table delivers the asset price, its change, liquidity, and the total volume traded within 24 hours. Also, members of the community can see the information on the top pools of the facility along with swapping transactions. The transparency of data in this section can be very helpful for users of the decentralized exchange. It’s also important to note that a percentage of the total prize pool in BNB was used to buy back CAKE and burn the tokens later.
The team is anonymous and users can only see the nicknames of its developers. All that is known about the developers is their fondness for rabbits and breakfast foods. The company applies for the help of the community to improve its project and offers generous rewards. In April 2021, the company announced a 150,000 USD reward for specialists who can achieve an enhanced technical solution to be able to deliver the service performed within the specified timeframe along with the efficiency and scalability of the project. The team specified the possibility to handle 50 million queries per day as the key goal.
The team is very active online and frequently makes announcements on new initial farm offerings (IFOs) and new staking opportunities.