PancakeSwap Decentralized Exchange Review

PancakeSwap is a DEX platform that is trusted by millions of users worldwide. You can trade tokens on this exchange without even registering. It is based on the Binance Smart Chain ecosystem, which was built to solve the programmability limitations of the Binance Chain. 

PancakeSwap background

It was launched in September 2020 by a group of anonymous developers. We don’t know the identities of the management team members and it is not clear where the headquarters of this company is located. 

PancakeSwap overview

At this moment, this is the leading DEX platform operating on the Binance Smart Chain, which means it has the highest market volume. It offers low trading fees and high yield for market makers. You have full ownership of your coins. 

Pros & cons

Funding methods:	BEP20 tokens and cryptocurrencies
Cryptocurrencies supported:	278
Countries:	20+

Pros

• Lower fees compared to other exchanges
• Lucrative rewards for liquidity providers
• High yield compared to other DEX platforms 
• Opportunity to win NFTs

Cons

• Not suitable for beginners
• No native wallet app

Key features of PancakeSwap

Here are the main features of this platform:

• Swapping

You can easily perform token swaps without going through a centralized exchange. All of the orders are routed through your wallet. 

• Liquidity pools

Here, you can add liquidity for a token pair of your choice. This way, you can receive trading fees and LP tokens. These tokens can be staked to win CAKE rewards. 

• Native token

The native token of this platform is known as CAKE. You can earn it from Syrup Pools and Farms. It can also be bought on an exchange or won in the lottery. You can stake this token to win more tokens or invest it in Yield Farms. Holders can vote for proposals and take part in the IFO Token sales as well.

• Security

A number of security firms have audited the smart contract of this DEX. Some of them include Slowmist, Peckshield, and Certik. Anyone can review the smart contracts of this exchange. These contracts are verified on BscScan. For all contracts, the devs use multi-signature protocols. There is a time-lock feature, which means you have ample time to review the changes and adjust accordingly.

What wallets does it support?

Here are the wallets supported by this platform:

• Metamask
• WalletConnect
• Trust Wallet
• MathWallet
• TokenPocket
• Binance Chain
• Coin98
• SafePal

For connecting your wallet to the DEX, follows these steps:

1. Open your wallet application
2. Navigate to wallet settings
3. Select the Binance Smart Chain network
4. Visit the PancakeSwap website
5. Go to the Exchange tab
6. Click on Connect and choose your wallet

How does PancakeSwap work?

To get started, you need to set up a wallet compatible with BSC and connect it to the platform. To conduct trades, you need to pay gas fees in the form of BEP20 tokens. After that, you can visit the Exchange page to start trading. Simply select the token you wish to swap and the one you wish to receive, check the details like price, maximum sold, price impact, and liquidity provider fee. Then, you can confirm the transaction.

What can you buy with PancakeSwap?

These are the most popular tokens you can purchase on this platform:

• CAKE
• BNB
• BUSD
• GEAR
• RUSD
• SFUND
• ERTHA
• RACA
• FROYO
• APX
• ETH

Are there any risks with PancakeSwap?

There is the risk of impermanent loss for liquidity providers. The price of a token might change after you add liquidity to the pool. If the loss exceeds the fees earned on withdrawal, you can get negative returns.

PancakeSwap fees

There is a 0.25% trading fee for every transaction conducted through this platform. Out of this, 0.17% goes to the liquidity pool for the swap pair.

Deposit methods

You cannot deposit fiat currency on this platform. To swap tokens, you need to have coins at your disposal. You can purchase these assets from another exchange.

Should you buy it?

This is a DEX that offers high APY and APR returns. Compared to other platforms, it has low trading fees. There is a vast community behind this exchange so you can get ample help if needed. However, since it is so popular, network congestion is a common phenomenon.

Final word for PancakeSwap

If you are an experienced crypto trader, this exchange would be suitable for you. It has a Telegram channel where you can seek help from the community. Some of the advanced functionalities may not be suitable for newcomers.