What Is PancakeSwap?
PancakeSwap is a Binance-powered Decentralized Exchange (DEX), with BEP-20 token swaps as its primary functionality. Further, you can also provide liquidity and engage in yield farming on this platform.
By leveraging an Automated Market Maker (AMM), PancakeSwap does away with the Order Book used in centralized exchanges. This simplifies the experience of end-users, who now interact with, so-called, liquidity pools. Each pool represents a tradeable market for a particular pair of assets, say, BTC-ETH.
As compared to its Ethereum-based counterparts, transactions on PancakeSwap are much cheaper. Further, out of the 0.20% transaction fee, 0.17% goes to the liquidity provider as a reward, while 0.03% is allocated to PancakeSwap’s treasury.
How To Use PancakeSwap?
You can start swapping tokens on PancakeSwap by following these 5 easy steps:
- Open PancakeSwap
- Connect your wallet such as Metamask, TrustWallet, MathWallet, WalletConnect, Binance Chain Wallet, etc. Make sure you have some BNB in your wallet to pay for the transaction fees.
- Click the dropdown menus to choose the tokens that you want to swap and enter the amount. By default, the base token is BNB.
- Click on ‘Swap’ to initiate the transaction.
- Preview and validate the transaction from your wallet.