Gerrit van Sittert | April 12 2023
Gerrit van Sittert | April 12 2023
For crypto traders, fragmented liquidity amongst various exchanges is a significant issue that can make trading unnecessarily risky, expensive, and time-inefficient. However, Orion Protocol is a rare platform that addresses all these issues head-on as a liquidity aggregator that offers users the most competitive trading experience available.
In this article, we will explore PancakeSwap, a decentralized exchange (DEX) that has demonstrated a foundational position in the DeFi space. We will provide a brief history of PancakeSwap, explain how it works, and discuss its various attributes.
We will also delve into the market cap and sentiment of PancakeSwap today, as well as where to buy CAKE, the native governance token of PancakeSwap. Additionally, we will discuss how to store your CAKE tokens securely and why PancakeSwap is incomplete without Orion.
Let's dive in and explore the exciting world of PancakeSwap and how Orion Terminal can help you take it to the next level.
PancakeSwap is a decentralized exchange (DEX) that launched in September 2020 on the Binance Smart Chain (BSC) and is one of of the best known decentralized exchanges to date. PancakeSwap was created as an alternative to centralized exchanges, which can be costly, insecure, and lack transparency just to swap tokens. Users trade DEXs through decentralized finance to retain their own assets and information while some of these projects are built by anonymous developers, building automated liquidity pools and similar projects.
The platform acts as an automated market maker (AMM) that allows users to trade crypto assets, no matter the market capitalization, and earn passive income through liquidity provision yield farming, while also participating in Initial Farm Offerings (IFOs).
Today, PancakeSwap also offers functionality for providing liquidity on the Ethereum and Aptos networks.
PancakeSwap operates at depth on the Binance Smart Chain, a blockchain network designed for high-speed and low-cost transactions as an automated market maker. Unlike centralized exchanges, PancakeSwap does not have a central authority and relies on smart contracts to execute trades - just like Orion.
PancakeSwap users and token holders can buy and sell crypto through liquidity pools, where traders deposit their funds to provide liquidity and earn a share of trading fees.
Users can trade on PancakeSwap by selecting a trading pair and entering the amount they wish to buy or sell. The platform uses a self-executing smart contract to settle trades, and transaction fees are paid in CAKE, the native token of PancakeSwap.
PancakeSwap also offers liquidity mining, which allows users to earn CAKE tokens through staking services.
The key to PancakeSwap is the many liquidity pools provided on their platform, which are used to facilitate swaps among a selection of trading pairs.
Users can add liquidity to any given pool by depositing respective coins and/or tokens and receiving Liquidity Provider (LP) tokens in return. These LP (CAKE) tokens can then be used to trade on the platform or stake in syrup pools. Orion Pool performs a similar function, using the native ORN utility token for governance, no matter what the random combination of tokens used to trade may be.
Syrup pools are special pools on PancakeSwap where liquidity providers can obtain CAKE by staking their CAKE to earn further CAKE rewards. The more CAKE a liquidity provider stakes, the more CAKE rewards they can earn.
PancakeSwap offers Initial Farm Offerings (IFOs) to its users, which is a type of fundraising event where investors can purchase a new token at a discounted price.
IFOs are similar to initial coin offerings (ICOs) and take place predominantly on PancakeSwap. IFOs are an opportunity for investors to get in on the ground floor of a new project and potentially profit from its success.
As of March 2023, PancakeSwap has a market capitalization of around USD $700 million and is one of the most popular DEXs in DeFi for new tokens and mature digital assets.
The CAKE price has generally followed the growth of the broader crypto market and has maintained relative stability in recent history with the highest price relevant to situational market volatility, as does the current price in general.
PancakeSwap has a loyal following of crypto traders and CAKE holders who appreciate its low fees, high trading volume, and user-friendly interface. However, like all crypto assets, the value of CAKE can be volatile, and investors should do their research before investing - as with other projects in the industry as well. There is no "winning ticket" in crypto. All participation in the industry should be handled with extra care and attention to safeguard your funds and data.
Better yet, buying your CAKE on Orion Protocol is your ideal solution because it offers a non-custodial wallet connection and access to a wide variety of CEXs, DEXs, and swap pools all in one place. This means Orion provides the most competitive exchange where you can buy CAKE at the best price possible. Orion combines PancakeSwap, Binance, OKX, KuCoin, Curve, Uniswap, AscendEX, SpookySwap, Quickswap and more together for the best prices with deep liquidity.
CAKE tokens can be stored in a crypto wallet that supports Binance Smart Chain. Users should ensure they keep their private keys safe and secure to prevent unauthorized access to their funds.
Storing your CAKE tokens on your own non-custodial wallet is ideal because it gives you full control over your assets. As the saying goes, "not your keys, not your crypto." Recent incidents with centralized exchanges have reminded the market of the dangers of custodial wallets. By storing your CAKE tokens on your own non-custodial wallet, you can mitigate the risks of third-party negligence and interference.
Orion Protocol understands the importance of self-custody and offers non-custodial wallet integration, allowing users to access and trade their crypto without giving up control of their private keys.
Additionally, Orion's platform offers secure staking options for CAKE tokens, allowing users to earn rewards while maintaining control of their assets. By using Orion's platform, users can trade and stake their CAKE and other liquidity provider tokens securely, without worrying about the risks associated with CEXs and even other DEXs.
While PancakeSwap offers a competitive trading experience, it can still suffer from liquidity issues, especially during periods of peak trading volume. PancakeSwap is also heavily dependent on the Binance Smart Chain, which deprives its users from a breadth of trading options.
This is where Orion Terminal comes in as a liquidity aggregator that leverages PancakeSwap as only one of many exchanges that offer liquidity through the Orion Protocol platform, making Orion the ultimate marketplace to find your ideal liquidity pool and stake LP tokens.
PancakeSwap has established itself as a leading DEX in the DeFi space, offering low transaction fees, a wide variety of trading pairs, and the ability for users to earn passive income through liquidity provision. However, like any exchange, PancakeSwap is not without its challenges, including liquidity issues and the potential for security breaches.
We invite you to benefit from all the advantages of PancakeSwap with the additional security, trading tools, and superior prices offered by Orion Protocol. Take PancakeSwap to the next level with Orion Terminal today.