PancakeSwap is one of the best-known decentralized finance (DeFi) ecosystems. In April 2021, it launched a new contract known as the PancakeSwap V2 crypto exchange. The platform offers crypto trading and earning, as well as gamified finance (Game-Fi) and an NFT marketplace.
The PancakeSwap protocol runs on the Binance Smart Chain. It supports BEP-20 tokens. You can find information about the 24-hour PancakeSwap V2 trade volume in the chart above. The service may be geo-blocked in some countries, including Belarus, Syria, and Cuba.
As a decentralized platform, PancakeSwap allows users to list their own tokens, as long as there is enough liquidity to back up the supply. For this reason, the total number of listed assets changes frequently. Overall, there are more than 3,900 PancakeSwap V2 trading pairs available.
Like many DeFi platforms, PancakeSwap has its native token, CAKE. It acts as the main utility asset that is used to pay fees and earn passive income. You can find out more about CAKE and the current PancakeSwap V2 crypto price by clicking here.
One of the key differences between decentralized and centralized cryptocurrency exchanges (DEX and CEX, respectively) is market availability. For example, there is no PancakeSwap V2 spot market available in the traditional sense. Instead, it functions as a swap – peer-to-peer trading between users’ wallets.
The PancakeSwap V2 crypto exchange offers perpetual futures contracts. Users can choose between lite and advanced perpetual trade modes. The lite mode is optimized for newcomers, while the advanced mode is recommended for professional traders. Perp futures contracts can be traded with up to 200x leverage.
The PancakeSwap V2 exchange fees are fixed per trade, meaning that the same rate applies regardless of the traded assets or volume. The maker-taker model is not applicable. The trading fee is 0.25%. A portion of this amount – 0.17% – is injected into the liquidity pool of the token pair in question.
Alongside the PancakeSwap V2 crypto exchange, users can also access several services that allow them to earn digital assets. Syrup Pools allow users to stake CAKE tokens to earn passive income in return. Users can also stake LP tokens in Yield Farms. The earned PancakeSwap V2 crypto price depends on the staking duration.
Additionally, users can become liquidity providers (LP) and earn PancakeSwap V2 crypto fees as rewards for their contributions. You can become a liquidity provider by staking tokens in one of the available liquidity pools.
PancakeSwap holds various competitions and lotteries that allow users to earn tokens as rewards. Users can participate in the daily lottery, make predictions about what the PancakeSwap V2 crypto price for BNB is going to be, or take part in other gamified bets.
The PancakeSwap NFT Marketplace is a platform for minting, buying, and trading non-fungible tokens (NFTs). It supports BEP-721 standard tokens. Several PancakeSwap V2 crypto fees apply, including platform and collection costs. The platform fees go towards buying back CAKE tokens which are then burned weekly.
About the Company
The PancakeSwap automated market maker (AMM) protocol was launched in September 2020. The founding team is completely anonymous and is only referred to as the Kitchen Team, or the Chefs. The company headquarters are located in Fukuoka, Japan.
The decision to develop the protocol on Binance Smart Chain (BSC) was made due to the network’s lower transaction costs and better speed compared to Ethereum. BSC also enables flexible tools for DeFi development, enabling integrations with PancakeSwap.
The initial goal being PancakeSwap was to introduce a competitor to another popular DEX, Uniswap. The PancakeSwap V2 cryptocurrency exchange is an upgraded protocol that was introduced in April 2021, after migrating to upgraded smart contracts.
PancakeSwap V2 is considered the dominant swap on the Binance Smart Chain. According to data from early January 2022, the 24-hour PancakeSwap V2 volume was around $7-8 billion, putting it in the first place by total value locked (TVL).
PancakeSwap runs as a decentralized autonomous organization (DAO), meaning that all decisions are voted upon by the network members. In May 2022, the community voted to cap the platform’s native token supply to 750 million.