This blog covers all the inputs, needs and requirements of token swapping like PancakeSwap. In this era of blockchain technology and cryptocurrency usage, there is something new to learn every day and sometimes it is not easy to understand the essence of these things.

Especially for someone who does not come from a technical background, when you hear terms like DeFi and decentralization, the mood is always to give up and look for something comparable. At Brugu, we try to remove this barrier by providing simple explanations of everything related to blockchain technology and cryptocurrencies.

In this blog, we will explain:

  1. What is a decentralized exchange system (DEX)?
  2. Pancakeswap
  3. Why Pancakeswap
  4. Advantages of using PancakeSwap
  5. Why start a DeFi exchange platform like PancakeSwap?
  6. Brugu’s expertise at your service

DEX: Decentralized exchange system

In simple terms, this is a system where there is no custodian to oversee cryptocurrency transactions between individuals. There are direct peer-to-peer transactions using blockchain technology instead of a physical custodian as the medium between the buyer and seller.

Decentralized Finance (DeFi) is a new financial system based on distributed ledgers similar to those used in cryptocurrencies. The system decentralizes authority over money, financial products, and financial services from banks and institutions


To understand in depth what a PancakeSwap is, we need to understand the meaning and functions of tokens:

A crypto token is something completely different from a cryptocurrency like Bitcoin. The main difference lies in their utility. To be precise, all coins are tokens, but not all tokens can be called coins. Coins run on their own specified blockchain, while tokens can run on any blockchain and work on blockchains of cryptocurrencies.

A PancakeSwap is a decentralized exchange system built on the Binance Smart Chain (BSC). It is used to swap BEP-20 tokens. The food-focused pancake token also offers essential services such as yield farming and exclusive trading features to increase token usage. It is entirely focused on improving the customer experience and adding value to the decentralized exchange platform.

PancakeSwap uses an automated market model. This means that while you can trade digital assets on the platform, there is no order book to match you with anyone. Instead, you trade against a liquidity pool.

Features of PancakeSwap:

  • Swapping: PancakeSwap is an open source DeFi protocol designed specifically for BEP-20 token swapping. Anyone can use this platform and swap their own BEP-20 tokens on the exchange, which is built on the Binance Smart Chain.
  • Farming: PancakeSwap allows you to farm your own token called CAKE. The farming feature of PancakeSwap allows users to deposit and lock their LP tokens and earn CAKE tokens as rewards.
  • DEX: The decentralized system along with the use of Automated Market Maker, which ensures that the order books of the decentralized trading platform are removed. A DEX platform like PancakeSwap is not just for exchanging and trading bitcoin.
  • Liquidity pool: participants can contribute their cryptocurrency tokens to this liquidity pool and receive trading fees from cryptocurrency trading on the exchange.
  • Deposits: Once you receive LP tokens, you can wager them and earn CAKE tokens. Once you have a CAKE token, you can deploy it to SYRUP pools. If you deploy a CAKE token, you will receive the rewards of CAKE tokens.
  • Create Profile: Users can create and update their profiles to continue their cryptocurrency trading tasks.
  • Lotteries: With the tokens, users can participate in a lottery where the minimum requirement for the user is 1 CAKE.

Why start a DeFi swap platform like PancakeSwap?

PancakeSwap, which is built on Binance Smart Chain, uses a variety of its unique qualities to provide end users with a good trading experience. For one, it has very low transaction fees and fast confirmation times that guarantee trades are completed quickly. PancakeSwap also does not suffer from predatory attacks like front-running, which makes it safer to use on blockchains with slower block times than some other AMMs.

PancakeSwap also has a wide range of additional features, many of which are useful for CAKE holders. Cryptocurrency traders can use this decentralized exchange platform to conduct cryptocurrency transactions with little traffic and hassle. It allows customers to participate in crypto trading 24 hours a day, 7 days a week through a decentralized exchange.

Why choose Brugu Software Solutions for a platform like PancakeSwap?

Brugu is considered the leader in this industry in blockchain technology. Our team is very efficient and able to provide the best service when it comes to the decentralized exchange system and DeFi. Our work has been praised by our clients all these years in terms of efficiency and timeliness.

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