What is PancakeSwap?
CAKE is the Binance Smart Chain (BSC) BEP-20 token that powers the PancakeSwap decentralized exchange (DEX) platform and yield farming ecosystem. PancakeSwap allows users to farm CAKE by contributing equal amounts of two different BSC token assets to a liquidity pool using PancakeSwap LP (liquidity token) created to represent staking value and ownership percentage of the overall trading pool between the two assets in PancakeSwap DEX automated market maker (AMM) model. PancakeSwap users become liquidity providers by staking LP to the token pair's corresponding high APY yield farm. Liquidity providers/farmers earn CAKE reward token as a percentage of the transaction fees generated from trade between the two assets on PancakeSwap exchange. Users earn compounded interest by staking CAKE to the auto-compounding CAKE pool to earn more CAKE, or stake CAKE to a variety of Syrup pools to earn APY distributed in their choice of BEP-20 tokens. PancakeSwap IFO platform allows new BSC tokens to gain exposure by participating in Initial Farm Offerings. For one hour, PancakeSwap users can be the first to purchase new tokens by contributing CAKE-BNB LP to the IFO pool, at the end of the IFO receiving a variable amount of the newly launched token and their unspent LP in return. PancakeSwap platform further offers users opportunities to maximize their CAKE earnings via PancakeSwap Futures and Lottery platform. Users can create a profile to earn achievement points and to be eligible for airdrops of collectible Binance Smart Chain BEP-721 NFT.
