### What is PancakeSwap?

PancakeSwap is a decentralised exchange (DEX) protocol designed for token swaps, liquidity provision, and staking, operating on the Binance Smart Chain (BSC). It employs the Automated Market Maker (AMM) model, enabling trading without relying on traditional order books. Key features of PancakeSwap include low transaction costs, fast trade execution, and a variety of financial products such as lotteries, NFT marketplaces, and Initial Farm Offering (IFO) launches.

### How does PancakeSwap work?

PancakeSwap utilises the AMM system, enabling users to trade cryptocurrencies via liquidity pools instead of traditional buy and sell orders. This model is supported by Binance Smart Chain's Proof of Staked Authority (PoSA) consensus mechanism. The platform employs smart contracts to manage these liquidity pools, execute trades, and handle staking. PancakeSwap's Smart Router links various trading algorithms to ensure optimal liquidity and pricing across its ecosystems, with its code being open-source and available for review.

### What are the potential use cases for PancakeSwap?

PancakeSwap offers multiple use cases across the decentralised finance sector, including:

- **Decentralised exchange** for token swaps
- **Liquidity provision and farming** for earning rewards
- **Staking in Syrup Pools**
- **Perpetual trading** and **prediction markets**
- **Lotteries and NFT marketplace** transactions
- **Initial Farm Offerings (IFOs)** for new token launches
- **Fiat-to-crypto conversions** via on-ramp services
- Collaborations in **options trading** and **blockchain gaming**

### What is the history of PancakeSwap?

PancakeSwap was launched in September 2020 as a fork of SushiSwap, designed to operate on the BNB chain. It has since achieved significant milestones, such as launching PancakeSwap V3 in April 2023 with improvements in user experience and capital efficiency. Significant growth was noted with its market share jumping by 110% between Q1 and Q2 2023. The platform continues to expand, offering new products and services, including a Revenue Sharing program and various blockchain-based games. The team behind PancakeSwap remains anonymous, working under pseudonyms like Hops and Thumper.

PancakeSwap

Lido Staked Ether

Uniswap

Aave

Rocket Pool ETH

Injective

NEXO

Lido DAO

Curve DAO

Raydium

Pendle

Four

Syrup

THORChain

Instadapp

Compound

DeXe

PancakeSwap (CAKE)

Similar Coins

STETH

UNI

DAI

AAVE

RETH

INJ

NEXO

LDO

CRV

RAY

PENDLE

FORM

SYRUP

RUNE

INST

COMP

DEXE

Resources

PancakeSwap (CAKE) Price Index

PancakeSwap Price

Trading volume

Market cap

Resources