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Binance Smart Chain (BSC) is emerging as an impressive speed network with extremely low transaction fees. In the wave of applications to BSC, not to mention the first Yield Farming application on the platform is PancakeSwap. So what is interesting about this platform and what should be noted in using this application, let’s find out with CHK through the article below.
Overview What is PancakeSwap?
PancakeSwap is essentially a decentralized exchange (DEX) that allows users to exchange BEP20 standard tokens (the latest token from Binance Smart Chain), stake tokens to receive rewards, and participate. voting governs decisions on the system based on the amount of Syrup tokens they hold.
This is a system that operates in the form of an Automated Market Maker (AMM – roughly translated: “Automated Market Creation System). This means that your trade will not be executed by others using the order books. Instead, users transact with each other by locking their tokens into a liquidity pool.
According to Yield Farming platforms data from CoinMarketCap as of November 2, PancakeSwap is currently ranked 7th in terms of total locked value (TVL) on the platform:
In addition, according to statistics from the DappRadar website, PancakeSwap is the leading application in terms of volume as well as the number of users on the Binance Smart Chain network.
How to create a wallet to join PancakeSwap
On the web platform
Basically, the default network connection MetaMask wallet is preferred for Ethereum.
However, users can use the MetaMask wallet platform, adjusting the connection from Ethereum to the Binance Smart Chain network, to be able to participate in transactions on PancakeSwap. Specifically, I would like to present through the following steps:
Step 1: Setting up MetaMask wallet settings. This step, CHK has detailed instructions in the article at this link.
Step 2: Once you have your MetaMask wallet, click on the network item at the top of your browser. Click on “Custom RPC”.
Step 3: After clicking Custom RPC, the screen will return fields of information to fill such as Network Name, New RPC URL, …
Step 4: You fill in the boxes with the same information as in the picture above. In case the information entered can be changed, please go directly to this website to copy the information and paste it in for peace of mind. I will put the link here Please.
Step 5: Click “Save” and you can connect to Binance Smart Chain. From there you can click to load BNB and you can continue to participate in transactions on PancakeSwap.
Note: When transferring BNB to your wallet, you must ensure that you are trading with the BEP20 standard – the new token standard of Binance Smart Chain.
On a phone platform
Another way to reach PancakeSwap is on a mobile platform with the TrustWallet wallet. Personally, if I want to join PancakeSwap, I should use TrustWallet more for 2 reasons:
- TrustWallet has a higher compatibility with the Binance house, neat installation of everything, the interface and Dapps that support a clear and convenient to use.
- CAKE is currently only supported on the CEX exchange, Binance, and the transfer speed from Trust Wallet to Binance is faster with the Binance Smart Chain network, supporting the process of moving coins back and forth if you want to sell with high liquidity.
Below is the guide to use the TrustWallet wallet App to join PancakeSwap.
Step 1: Download Trust Wallet and set up settings in the wallet, for this issue, CHK also has a tutorial here.
Step 2: Add BEP20 standard BNB coin to your wallet.
Brothers click install button in the right corner in the picture above. Then look for BNB coin to add to display on the homepage of the wallet.
Note: You must use BEP20 standard BNB. With the name displayed on the Trust Wallet is “Smart Chain (BNB)” as shown below.
Next, you just load BNB into your wallet to continue participating in transactions on PancakeSwap only.
You click on the 4-square-box icon below the tab bar.
Trust Wallet wallet will show the supported Dapps. You choose to enter PancakeSwap that you can connect to this DEX floor already.
Token PancakeSwap (CAKE) price, marketcap, chart, and fundamentals info
CAKE is an internal token on the DEX PancakeSwap exchange. This is a token developed by a group of anonymous programmers and taking the BEP20 standard of Binance Smart Chain to operate.
Some parameters about CAKE token
- Token code: CAKE
- Token standard: BEP-20
- Price: $ 0.371256
- Market capitalization: 16,765,455 USD
- Circulating supply: 45,158,934 tokens
How can I receive CAKE?
On the PancakeSwap exchange, you can directly swap BNB, BAND, BCH, ALPHA, … to CAKE for staking or mining on the platform.
Trade on Binance
For brothers who play CAKE and just want to invest in the price fluctuation of this token instead of wanting to increase the number of tokens fast, you can trade on the Binance exchange.
Currently, Binance is supporting CAKE / BUSD and CAKE / BNB trading pairs
On the menu item of PancakeSwap, you click Staking. Here when you stake (ie key amount of CAKE available) you will be paid in the form of CAKE.
Similar to staking, but mining, you need to stake 2 tokens to create a pool of tokens.
After having token pool, you can lock these token pools to the pools from which to receive CAKE. About this Yield Farming activity, I will talk more carefully in the next section.
Yield Farming is a recent emerging wave on DeFi platforms, simply because it allows investors to quickly benefit from high returns, as well as the growth potential is still enormous in the near future. .
Now CHK will guide you step by step to be able to participate in Farming on PancakeSwap.
First, go to “Menu”, you click “Farm”.
There is a small note and is a plus point for PancakeSwap when the system integrates many languages. For more convenience, you can click on the language symbol in the right corner. Then select “Vietnamese” for more convenience when joining the platform.
Here you can see mining pools. Each mining pool will have 2 tokens. The example below I will take is CAKE and BNB.
After identifying 2 mining pool tokens that you want to join, you will have to create token pools by “Add Liquidity”. Click on “Trade” then “Exchange” on the Menu bar. Next click on the tab “Pool” and you can start “Add Liquidity”.
Choose 2 tokens as the initial target, in my example BNB and CAKE, then click Add.
Once you have a Pool Token (in my example it will have the code CAKE-BNB FLIP), you go back to the mining pool interface, Stake the Pool Token you just created into the pool.
Note: The APY (Annual Percentage Yield temporarily translated as the Annual Percentage Yield) is the bonus interest rate that you can receive when you farm in the pool. This APY will be high and low depending on the risk and volatility of the tokens staked in the pool.
Below is a table of statistics of APY levels for the notable yield farming pools on PancakeSwap – data taken on November 2.
|Farm Pool||APY (%)|
|CAKE – BNB||506.1|
In addition, on PancakeSwap there are still a lot of farm pools with many other notable cryptocurrencies such as EOS, ETH, BTC, … You can go to the farm pool interface of PancakeSwap to enjoy choosing the right pool with the strategy. your investment.
And on the display frame there will be a “Harvest” item, ie the amount of CAKE you are rewarded for by your Farming activities.
Note: You should wait for a fair amount of CAKE then Thu Hoach because that way we will benefit more from the transaction fee.
Some announcements change
Due to a number of technical errors encountered with the SYRUP token, the PancakeSwap platform just announced it will move all SYRUP staking pools to CAKE staking. Funds staked in SYRUP cannot be withdrawn. Instead, the platform will still recognize your balance, and will still proceed to pay the above SYRUP in the future.
Join the Staking Pool
In addition to farming to receive interest, brothers can also stake CAKE in pools to receive rewards with a variety of tokens. The steps to join the pool are as follows:
Step 1: In the “Menu” section, click “Pools”.
Step 2: Next, you pull down to select the pool. As of November 15, the available pools are:
- CAKE Pool
- HARD Pool
- TWT Pool
- NYA Pool
- bROOBEE Pool
Once you have selected the pool, you will be redirected to the interface as shown below. In this example I will choose CAKE pool.
Step 3: In this interface, you can also track the amount of CAKE you get through Staking. Click the (+) sign to stake CAKE to the pool.
Step 4: Click the amount of CAKE you want to stake and click “Confirm”.
So you can start receiving rewards returned from Staking activity. Next we will come to another interesting activity on PancakeSwap called Lottery.
In addition, you can use CAKE to buy lottery tickets and have the opportunity to receive prizes up to about 500 CAKE for each prize. Every 2 hours, the platform draws in numbers to find the luckiest people.
The cost per ticket will be around 10 CAKE. For each ticket you buy, you will receive 4 numbers.
There will be 3 prize categories that are winning 2 numbers, 3 numbers and 4 numbers. You can track your lottery results right in the Lottery tab.
Where to keep track of the latest PancakeSwap news?
You can follow directly the latest updates on the PancakeSwap platform through official channels such as:
Should join PancakeSwap or not? Is PancakeSwap scam or not?
Personally, I realize that at the present time, Yield Farming is no longer as hot as it was in August and September. Therefore, for brothers who want to find the xxx deal and do not want to keep capital for long, PancakeSwap is not the right choice.
In addition, because this period, APY on CAKE’s mining pools has decreased significantly, so once again this is the reason that many brothers need to consider.
Another factor is that the development team behind CAKE remains anonymous. This detail is sometimes a bit of a concern for some brothers who want to embrace and keep capital on PancakeSwap for the long term.
However, in the opposite direction, it can be said that the Yield Farming platform as well as the first Automated Market Creation (AMM) platform on Binance Smart Chain, this may be the long-term target that Binance want to develop in the future.
PancakeSwap also integrates and connects with many IEO tokens on Binance, so in terms of ecosystem, this can still be considered a plus point for this platform.
So, we and the brothers went through the preliminary PancakeSwap platform and many activities on this DEX floor. Hope to have a chance to see you again soon in other detailed reviews and tutorials from CHK.
Note: The above article is for information purposes only and is not considered investment advice.
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