PancakeSwap

3822 Views

Paid Software: Is It Worth the Investment?

Jody Kaufman

02.09.2025

The True Value of Paid SoftwareIn a world where free applications and open-source solutions abound, many users wonder whether it’s worth investing in paid software. The decision isn’t always straightforward, as it depends on individual needs, security concerns, and performance...

Read More

17176 Views

Artificial Intelligence in Software

Sanjay Pitt

02.17.2025

AI in Modern Software: A New Era of Innovation Artificial intelligence has become an integral part of software development, revolutionizing the way applications function. From automating repetitive tasks to enhancing user experience, AI is reshaping software across various industries. Its ability...

Read More

Deposit

DEX does not store customer funds. You exchange assets directly from the wallet, which means making a deposit on PancakeSwap is simply not possible. If you have connected your wallet, all supported tokens are automatically available for exchange on the platform. But you need to take into account that:

• If you plan to use the platform for derivatives trading, you will need to transfer assets from your wallet to the PancakeSwap address to use them as collateral when opening a position.

Important: on the derivatives platform you can also create an account linked to your email if authorization via wallet is not suitable for you. Verification is not required for derivatives trading.

• PancakeSwap has integrated an aggregator of on-ramp services that allow you to buy cryptocurrency directly to a connected wallet via fiat payment instruments. At the moment, MoonPay and Mercurio are available as payment services.

There is no deposit withdrawal, either - you simply disconnect your wallet from the platform. If you no longer plan to use PancakeSwap pools for exchange, you can revoke their permissions to access assets via Revoke or a similar service. This will help protect against theft in the event of a hack or scam by the pool.

CAKE token

CAKE is a native token of the PancakeSwap exchange. CAKE can be classified as a utility token. Its scope of use includes:

• Liquidity incentivization: liquidity providers receive additional rewards in the form of CAKE by locking their LP tokens into PancakeSwap farms.
• Governance: CAKE holders can vote their tokens when making decisions regarding the further development of the site.
• Additional tools for earning money: lottery, farming boosters and betting on price forecasts interact exclusively with CAKE.
• Payment of commissions: CAKE is used to pay trading fees and commissions when interacting with some PancakeSwap services.

Most of the tokens issued are distributed as rewards to liquidity providers and farm participants. CAKE issuance is set by the PancakeSwap protocol and according to the team's data as of July 7 is ~1,152,000 tokens daily (excluding burn-in):

To reduce the rate of inflation, PancakeSwap runs a burn program by charging a portion of CAKE paid as exchange fees and a number of other activities (read more here). This allows burning up to 90% of the daily issuance and the effective issuance is ~130k tokens per day.

In summary, CAKE remains an inflationary asset, which is confirmed by the overall price dynamics.

However, price projections for CAKE depend on various factors, including the overall health of the cryptocurrency market, future Pancake Swap updates, and the macroeconomic situation. Even with its inflationary nature, CAKE has seen both ups and downs in the past, following the general market trend rather than the pace of issuance.

Instruments on PancakeSwap

PancakeSwap is not just a DEX, but a comprehensive DeFi marketplace that features a full suite of degen tools. They are all gathered on the top panel and divided into several tabs: Trade, Earn, Win, NFT and Game. Key features include:

• Swap: hundreds of liquidity pools are available to users for popular and not-so-popular exchange pairs. We'll go into more detail on how the swap works below, but at the user level it's pretty much the same as a regular exchanger or converter.
• Liquidity: allows providing liquidity to PancakeSwap pools. The algorithm will automatically select the most profitable pool for the desired pair or create a new pool if it does not exist yet. In V3 pools, the user can customize the price range in which provides liquidity.
• Derivatives trading: PancakeSwap derivatives platform allows trading perpetual contracts on several dozens of cryptocurrencies and fiat Forex pairs with leverage up to x50.
• Bridge: allows transferring assets between three supported networks - BSC, Ethereum and Aptos. The solution for the bridge was provided by LayerZero. However, it is unlikely to be useful off-site, as it only supports CAKE tokens.
• Farming: this section contains farms for PancakeSwap liquidity providers. Farms allow earning additional rewards in the form of CAKE for steaking LP tokens. We will go into more detail about this tool later.
• Syrup Pools: pools for CAKE holders to earn money from steaking native tokens. It works roughly like Binance Launchpool - you steak CAKE, and as a reward you get a token of some project.
• Liquidity steaking: integrated through the Binance platform, i.e. if you steak ETH, you get WBETH in return. The APR is also exchange-traded, so it can be lower than Lido and other LSD providers. You can learn about liquid steaking and LSD in this article.

The site itself is gamified and encourages activity through trading competitions, a system of native NFT characters, lotteries, and other fun mechanics. Due to the gamification and overall design concept, newcomers will feel more comfortable here than on other DEXs. But do not forget that behind the colorful interface and cute rabbits hidden tools on which depends on the real income and loss.

PancakeSwap: scam or not?

PancakeSwap is a time-tested and market-tested decentralized crypto exchange with a clean history of hacks. The platform is considered a flagship for the BSC ecosystem and does NOT scam users. However, scammers are free to use PancakeSwap for fraudulent schemes. For example, to:

• attracting liquidity with further rugpooling (emptying the pool);
• selling fake tokens;
• selling or laundering stolen assets;
• creating visible liquidity for scam projects.

PancakeSwap screens out fake or obscure tokens at the interface level, but cannot prohibit the creation of scam pools due to its decentralized nature. Always verify assets when making an exchange, especially when it comes to know-name tokens or pools with very favorable exchange rates.

Important: don't forget about the risks of using DEX, which can lead to financial losses but are not scams, such as erratic losses, low liquidity, slippage or high transaction fees on the network.

Conclusion

The platform emerged in 2020 as a native DEX for BSC and has since held a leading position in this ecosystem.

PancakeSwap can be considered as a full-fledged DeFi platform with a variety of tools for earning money - from swaps and liquidity provision to pharming and on-chain lottery. At the same time, the functionality is packaged in a bright and user-friendly interface, and many activities are gamified, which simplifies interaction for beginners.

As for security, PancakeSwap hasn't been hacked in its entire lifetime, but decentralization and open source code allow scammers to use the site to scam users. Interact with any on-chain assets and tools as carefully as possible and always DYOR!