This blog encompasses all the inputs, needs and requirements of token swapping like PancakeSwap. In this era of blockchain technology and use of cryptocurrency, there is a new thing to learn everyday and sometimes getting the gist of those things are not very easy.
Especially for someone from a non technological background, looking at terms like DeFi and decentralization, the mood is always to give up and bog for some relatable stuff. We at Brugu, try to eradicate this barrier by providing simple explanations to everything related from blockchain technology to cryptocurrencies.
In this blog, we will be explaining:
- What is a decentralized exchange system (DEX)?
- Why Pancakeswap
- Benefits of using a PancakeSwap
- Why Start a DeFi Exchange Platform Like PancakeSwap?
- Brugu’s expertise at your service
DEX: Decentralized Exchange System
In simple terms, this is a system where there is no custodian to monitor the cryptocurrency transactions between the individuals. There exist direct peer to peer transactions using the Blockchain Technology instead of a physical custodian as the medium between the buyer and the seller.
Decentralized finance (DeFi) is a new financial system based on distributed ledgers that are 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 about what a PancakeSwap is, we need to understand the meaning and functions of tokens:
A crypto token is something separately different from that of a crypto currency like Bitcoin. The major difference lies in their utility. To be precise, all coins are tokens but all tokens cannot be termed as coins. Coins run on their own, specified Blockchain whereas tokens can run on any blockchain and operate on blockchains of crypto currencies.
Now a PancakeSwap is a decentralized exchange system which is built on Binance Smart Chain (BSC). It is used to swap the BEP-20 tokens. The food-focused Pancake-token also provides essential services like yield farming, and exclusive trading features to increase token usage. It is entirely focused on improving the client experience and adding value to the Decentralized Exchange platform.
PancakeSwap uses an Automated Market model. That means that while you can trade digital assets on the platform, there isn’t an order book where you’re matched with someone else. Instead, you trade against a liquidity pool.
Features of PancakeSwap:
- Swapping: PancakeSwap is an Open Source DeFi protocol designed specially for swapping BEP-20 tokens. Anyone can use this platform and swap their own BEP-20 token on the exchange which is built on the Binance Smart Chain.
- Farming: PancakeSwap allows you to farm its own native token called CAKE. The farming feature of PancakeSwap allows users to deposit their LP tokens and lock them up and earn CAKE tokens as rewards.
- DEX: The decentralized system along with the use of Automated Market Maker which ensures that the decentralized trading platform’s order books are removed. A DEX platform like PancakeSwap isn’t just for swapping and trading bitcoin.
- Liquidity Pool: Participants can put their cryptocurrency tokens into this liquidity pool in exchange for trade fees from cryptocurrency trading on the exchange.
- Staking: Once you have got LP tokens, it’s time to stake those and earn CAKE tokens. When you have got a CAKE token, you can stake those in SYRUP pools. When you stake a CAKE token, you will be earning the rewards of CAKE tokens.
- Profile making: The users can create and update their profiles to continue their tasks regarding cryptocurrency trading.
- Lotteries: Using the cakes, user can enter into a lottery where the minimum requirement for the user is 1 CAKE.
Why Start a DeFi Exchange Platform Like PancakeSwap?
PancakeSwap, which is built on Binance Smart Chain, takes advantage of a variety of its unique qualities to give end-users with a good trading experience. For one thing, it has very low transaction fees and quick confirmation times, guaranteeing that trades are completed swiftly. It also doesn’t suffer from displacement assaults like front-running, making it safer to utilize on blockchains with slower block times than some other AMMs.
PancakeSwap also has a wide range of supplementary features, many of which are useful to CAKE holders. Cryptocurrency traders can use this decentralized exchange platform to conduct cryptocurrency transactions with little traffic and hassles. It allows customers to participate in crypto trading 24 hours a day, 7 days a week through a decentralized exchange.
Why should you choose Brugu Software Solutions for a platform like PancakeSwap?
Brugu has been considered as the market leader in this industry pertaining to blockchain technology. Our team is very efficient and capable of providing the best service when it comes to the Decentralized Exchange system and DeFi. Our work has been commendable with respect to efficiency and punctuality by our customers all these years