How To Use PancakeSwap? A Detailed Guide 2021

how to use pancakeswap

Lastly, tap on “Swap” to swap BNB for the token that you’ve imported. On the “Search name or paste address” field, you need to paste the contact address of the token that you want to buy. This means that Trust Wallet is successfully connected to PancakeSwap. After you’ve tapped on “Connect”, the “Connect to a wallet” pop-up will open. To connect to a wallet, tap on “Connect” on the top navigation bar. You can do this by buying BNB on a cryptocurrency exchange like Binance.

  1. As illustrated above, veCAKE holder can vote for their preferred pool within each Gauge to determine the CAKE Emission allocation.
  2. If you want to trade BEP-20 tokens, which are native to the BNB Smart Chain network, you will most likely choose PancakeSwap as the default DeFi application.
  3. It is important to note that each voting epoch determines the emission for the next epoch, and these changes take effect only after the current voting concludes.
  4. The more veCAKE a pool accumulates through Gauges Voting, the more CAKE emissions will be allocated.
  5. If you want to have more control over your trade, you can use the “Limit Order” feature, which lets you place orders to trade at a set price and not the current market price.

You will get a summary of your deposit, stating how many LP tokens you will receive. You will have to confirm the staking transaction from your wallet. If you want a different token, feel free to browse through the list of Syrup pools.

PancakeSwap also features a marketplace for non-fungible tokens (NFTs), where you can buy, sell, and collect unique assets on the BNB Smart Chain. You can then choose what amount of CAKE tokens to stake in that pool. Note that you can choose between the CAKE pools and the other Syrup Pools, depending on what kind of rewards you are after. If you want to generate more CAKE tokens from your already owned CAKE, then you can choose one of those CAKE pools (auto or manual). If you don’t have any CAKE tokens, you can use the PancakeSwap trade option for buying and selling CAKE.

Not all LP tokens can be staked, so make sure to check the current pools under Farms. PancakeSwap’s liquidity pools play a crucial role in facilitating token swaps. If you want to trade BEP-20 tokens, which are native to the BNB Smart Chain network, you will most likely choose PancakeSwap as the default DeFi application. The protocol offers many different features, from cryptocurrency trading to token staking.

Fees are added to the pool, accrue in real-time and can be claimed by withdrawing the provided liquidity. As we’ve already mentioned, learning how to use PancakeSwap and using CAKE tokens go hand-in-hand. PancakeSwap is a decentralized exchange on the Binance Smart Chain (BSC) and facilitates the swapping of BEP-20 tokens. Although it is the largest of these DEXs on Binance Smart Chain, there are DEXs that have significantly higher average trading volumes on Ethereum, such as Uniswap.

What Is a Blockchain-Agnostic Protocol?

However, this PancakeSwap tutorial focuses on swapping BNB for another token. On PancakeSwap, you can swap BNB for another token like ElonTech. You can win special NFTs on PancakeSwap, simply by registering your name. Winners are randomly chosen and you can either trade your NFTs for CAKE or display them as Collector’s Items.

how to use pancakeswap

MetaMask, TrustWallet, and Binance Chain wallet are some of the most used wallets. Make sure you have a compatible wallet before looking for how to use PancakeSwap. Here is a complete step-by-step guide on how to use PancakeSwap to trade, provide liquidity, and stake your CAKE tokens. At the time of writing, CAKE is priced at $17.06, with a market capitalization of over $2 billion. In terms of its market cap, CAKE ranks 45th among more than 2000 cryptocurrencies listed on CoinMarketCap. You can buy CAKE from Binance, VCC Exchange, BKEX, KuCoin, and MXC, among several others.

CAKE stakers enjoy various benefits with veCAKE, including governance power, deeper liquidity, and vote incentives. PancakeSwap has been audited by CertiK and is one of the leading platforms in the DeFi space. Depositing funds into a smart contract always carries the risk of bugs, even for audited and reputable projects.

To learn, users must understand the mechanism behind the trade option. If you want to have more control over your trade, you can use the “Limit Order” feature, which lets you place orders to trade at a set price and not the current market price. Trading on PancakeSwap is straightforward, and you can access the option by clicking on “Trade” and selecting the token pair you wish to swap.

PancakeSwap Key Features

There is also the risk of financial loss that may occur when trading or providing liquidity. PancakeSwap’s integration with market makers on Ethereum and BNB Smart Chain enhances trading efficiency. This means trades can be automatically routed to market makers, offering better execution prices compared to the AMM.

how to use pancakeswap

To be more exact, you will earn 0.17% of all trades on that particular market pair corresponding to your share of the pool. In the cryptocurrency market, farming is using your crypto to make even more crypto. When you farm tokens, you are actually lending them to other individuals through smart contracts. So, in one way or the other, you are serving as a bank that just gave a loan to somebody.

SushiSwap vs. Uniswap vs. 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. Once that transaction is confirmed, simply select the amount you want to stake and confirm it. Select the token pair that you want to deposit (e.g., BNB and CAKE). Make sure you understand the risks of impermanent loss before adding liquidity to a pool. For buying and selling tokens on PancakeSwap, you will need to connect your wallet to the app.

How to add liquidity on PancakeSwap?

Users can set desired prices for buying or selling tokens when the market reaches a specific limit price or better. The decentralized finance (DeFi) revolution has redefined the way we trade and invest. With the use of blockchain technology, DeFi platforms can offer increased transparency, autonomy, and accessibility to financial services. Liquidity providers will earn 0.17% of all trades on this pair proportional to their share of the pool.

Token Swaps and Smart Router

Since Pancake Swap is a fully decentralized exchange, no third party is included in any of the trades or transactions done on its platform. This is a huge plus for Pancake Swap, making it way safer and less prone to cyber-attacks since being decentralized makes it virtually impossible for hackers to sabotage. Since Pancake Swap does not have a built-in wallet, you will be required to link a wallet to it. For a full guide on how to link your wallet with Pancake Swap, go to Wallets (Metamask & Trustwallet).