Overview
PancakeSwap is a decentralized exchange (DEX), which allows for trading cryptocurrencies and tokens without an intermediary, and runs on Binance Smart Chain. It is built on an automated market maker (AMM) system, which relies on user-fueled liquidity pools between token pairs to enable crypto trades. PancakeSwap is one of the largest such DEXs that runs on the Binance Smart Chain and is an alternative to Uniswap and other DEXs that run on the more established Ethereum. In addition to the capabilities of a traditional crypto platform (swapping, trading, yield farming, staking, NFTs), PancakeSwap offers several proprietary features: Initial Farm Offerings (IFOs), Yield Farms, Syrup Pools, PancakeSwap Lottery, Prediction Markets, and NFT Collectibles.
PancakeSwap was launched in September 2020 by anonymous developers, although it is known that the team consists of more than a dozen members (also known as chefs), including two co-leads (referred to as Hops and Thumper) and engineers. PancakeSwap is partially governed by the community and CAKE holders are able to use PancakeSwap's voting portal to vote on governance proposals.
CAKE
CAKE is the token that powers the PancakeSwap ecosystem. Users can buy CAKE on the exchange, earn CAKE from Farms and Syrup Pools, or win it in the lottery. Within the ecosystem, CAKE is used for trading, yield farming, staking, participating in the lottery, and making and voting on governance proposals. CAKE is the 33rd-largest cryptocurrency on the market, with a market capitalization of $4.49 Billion.
