PancakeSwap, on the other hand, is an automated market maker (" AMM ") that allows two tokens to be exchanged on the Binance smart chain. It's fast, cheap, and anyone can join. CAKE is a token on PancakeSwap platform, and it was originally launched as BEP20 token on binance smart chain. CAKE's main function is to incentivize the liquidity reserves of the PancakeSwap platform, where users can place their tokens on bets to earn rewards, called agriculture, and CAKE tokens are rewarded by the system.

The exchange employs an automated market maker (" AMM ") mechanism that allows token trading on binance's smart chain. In addition, you can earn cakes from revenue farms, cakes from staring at plates, and more tokens from syrups. Miners can conduct liquidity mining in PancakeSwap. It can also be said that PancakeSwap is a BEP-20 decentralized trading platform established on binsecurity intelligent chain, which provides liquidity with automatic market maker mechanism.

1. The anonymous team that developed the PancakeSwap AMM platform likes to keep it simple, direct and authentic, with few words but lots of pictures of syrup PancakeSwap and rabbits. It's fast, cheap, allows anyone to participate, and allows two tokens to be exchanged on the BSC. 2. Pancakeswap is a DEX that runs on BSC and adopts AMM mechanism. In addition to trading functions, it also has functions such as Farms, Syrup, Lottery and IFO. The combination of these functions makes Pancakeswap no longer a DEX but a comprehensive DeFi service platform.

PancakeSwap's main purpose is to become the number one liquidity provider in the BSC and to provide new and innovative mining game tools. There are 26 different pools of tokens on the platform. Holders can earn CAKE tokens. There are different rewards in these pools, and the value of the reward depends on the characteristics of each pool (x20, x8). PancakeSwap also has Cake Stacking, for which users should hold SYRUP tokens. Holders of SYRUP tokens will get 25% of the CAKE rewards generated by each CAKE block (ten cakes per block), and the rewards are allocated proportionally to each block according to the amount of SYRUP held. There are five pools of SYRUP tokens on the platform. Users can bet SYRUP on "farms" to earn new tokens. Users can cancel bets at any time, and rewards are calculated on a per-block basis.

In February 2021, PancakeSwap briefly surpassed Uniswap as the largest DEX. They started as an offshoot of Uniswap, which meant they copied the code and created their own tokens. While it was technically a copy-and-paste project, it quickly gained prominence and released unique features that Uniswap did not have. For example, liquidity providers on Pancakeswap not only get a cut of transaction fees, but also receive CAKE (the ecosystem's management token) rewards. Another unique feature of Pancakeswap is that users can pledge cakes and receive other tokens in exchange for a large APY of more than 70%. They also offer prediction markets, lotteries and IFO services, a new kind of crowdsourcing model where users pledge CAKE and BNB in order to get tokens from projects. These token use cases and the faster and cheaper nature of the Binance smart chain have resulted in Pancakeswap gaining a lot of traction since its release.