Ever heard of the term PancakeSwap?
What is PancakeSwap?
PancakeSwap is a decentralized exchange that allows its users to trade cryptocurrencies and tokens without a centralized intermediary.
The service is built on the automated smart contracts used on Binance Smart Chain, the blockchain platform run by crypto exchange Binance.
Why is it called PancakeSwap?
It just follows the trend of decentralized finance that uses a food theme. PancakeSwap is the latest in a long line of crypto projects, including SushiSwap, Yam Finance, BakerySwap and Kimchi Finance.
PancakeSwap was first released in September 2020 on the Binance Smart Chain used specifically for BEP-20 tokens.
The concept that it carries is Automatic Market Maker. Where as a user, you will trade with a pool of liquidity or user-fueled liquidity to enable crypto trading.
Namely, it contains funds deposited into the pool and then gets tokens from liquidity providers in return.
In accordance with the concept, liquidity pools are also a substitute for order books as in the abolished blockchain network.
So you can make the desired exchange and can get rewards all the time if you participate in saving coins in the pool.
PancakeSwap is part of the rising wave of DeFi services and is one of the largest DEXs on the Binance Smart Chain.
It even surpassed Uniswap several times to become the most popular DEX based on trading volume.