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Binance Review & Tutorial 2021

PancakeSwap Review & Tutorial: How to Use & Stake CAKE Token

Written by LouiseElizabeth

10th March 2021

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If you’re tired of paying sky-high fees on the Ethereum blockchain when using decentralized exchanges such as UniSwap or SushiSwap. Then you might be interested to hear, Binance is looking to disrupt the DeFi space and challenge these Ethereum based AMMs with two of their own. PancakeSwap and BakerySwap are built on the Binance Smart Chain (BSC), instead of the Ethereum blockchain. Offering users high yields to stake and add liquidity but with faster transactions and lower fees.

In this PancakeSwap review we’ll see how you can save fees, exchange, provide liquidity, and best of all earn rewards using their own CAKE tokens.

What is PancakeSwap?

PancakeSwap is a decentralized exchange that is based on the Binance Smart Chain. If you’re familiar with the likes of UniSwap or Sushiswap you’ll have no problem understanding and getting to grips with pancake swap which is very similar in design.

what is pancakeswap

However, the main difference is that instead of using the Etheruem network you’ll be connecting to the Binance Smart Chain. Therefore you’ll be trading BEP20 tokens as opposed to Etheruem or ERC20 tokens. At the time of writing this Pancakeswap review, the Ethereum network is heavily congested and gas fees are at an all-time high.

Therefore many users are trying to find ways to save money on fees when interacting with decentralized apps or Defi. One such way is by using apps that work on the Binance smart chain instead, where the fees are considerably lower, plus in my experience, it’s fast. 

Binance exchange Referral ID Code

PancakeSwap uses an automated market maker (AMM) model. Meaning there no order books, use liquidity pools instead. However, Pancakeswap isn’t just an exchange. You can also earn by becoming a liquidity provider,  adding your tokens to the liquidity pools, you can farm your LP tokens and stake your cake to earn rewards plus try your luck in lotteries and NFTs.

about pancakeswap

PancakeSwap (CAKE) Token

The Pancakeswap token (CAKE) is a BEP-20 token that was launched on Binance Smart Chain in September 2020. The main function of CAKE is to incentivize liquidity provision to the PancakeSwap platform.

PancakeSwap Price

The CAKE token price rallied at the beginning of 2021. CAKE has a token supply of over 118 million.

Binance BNB 3rd Largest Crypto

PancakeSwap Supported Wallets

To start using PancakeSwap you’ll need to use a supported wallet that is connected to the Binance Smart Chain. These include the likes of MetaMask, TrustWallet, TokenPocket, and WalletConnect.

If you choose the Metamask you will need to manually connect the wallet to the Binance Smart Chain.

Supported Wallets PancakeSwap

How to Connect Metamask to the Binance Smart Chain

To use the Metamask wallet with the Binance Smart Chain, you’ll need to manually add the Smart Chain Mainnet. For further details, check out my blog post.

How to connect Binance Chain to MetaMask

Supported Cryptocurrencies

PancakeSwap can be used to trade BEP20 tokens. BEP20 is essentially a token standard that is on the Binance Smart Chain. Similar to the likes of ERC20 tokens that are used on the Ethereum blockchain.

Binance Smart Chain

PancakeSwap Fees

With Pancake Swap, the trading fees are 0.2%. This is divided between liquidity providers (0.17%) and the PancakeSwap Treasury (0.03%).

As there are no order books there are no deposit or withdrawal fees, but you will need to pay transaction fees for interacting with the Binance Smart Chain. These transaction fees are currently minimal, especially compared to the likes of the gas fees on the Ethereum network.

PancakeSwap Staking

With PancakeSwap you can also stake your tokens to earn rewards. This can be done in 2 steps.

Firstly, you can deposit your Liquidity Provider or LP tokens and lock them up in a process that will reward you in CAKE, by choosing to Farm. These tokens can be unstaked at any time with zero holding time.

yield farming pancakeswap

Secondly, you can earn even more rewards by staking your CAKE in what is named Syrup Pools. This was initially named syrup pools as you used to earn their governance token named syrup, however, this came to a halt after an exploit was found in the syrup smart contract.

There are several tokens you can earn by staking CAKE. And you’ll obviously need some cake to stake which you can trade for or wait for your rewards to build up from staking your LP tokens.

PancakeSwap Staking

Is PancakeSwap Safe?

PancakeSwap has been audited by CertiK, however, depositing funds into a smart does come with risks. Meaning that there can be bugs even when they have been audited.

In fact, an exploit was found in the SYRUP smart contract which forced PancakeSwap to put an end to their SYRUP pools. So, even with a CertiK audit, it appears the contracts can still be compromised.

PancakeSwap Support

If you have a support query, you can contact PancakeSwap via their social media channels, such as Telegram or Twitter.

Binance Exchange

If you´re new to Binance Exchange and not sure where or how to get started, I have a full Binance tutorial. Where I explain how to buy and sell on the exchange. Plus how you can earn up to 45% off your Binance trading fees.

Binance Review & Tutorial 2021
LouiseElizabeth
Written by LouiseElizabeth

Louise created the Every Bit Helps YouTube channel back in 2017, after finding the process of buying Bitcoin difficult. Therefore, in an aim to help others, she hopes that her tutorials will make the process of buying, selling and storing crypto a lot easier for newbies in the future.

After spending 20 years working in London in cyber security, she left the corporate life after having her second child in 2018. Louise now travels the world with her two small children trying to make the most out of life.

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2 Comments

  1. Avatar

    How do you contact their support? My lp token will not revert!

    Reply
    • Avatar

      Hopefully this issue is now resolved. However, you can contact PancakeSwap via Twitter or Telegram, but not too sure how long it takes to get responses.

      Reply

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