We are thrilled to share that PancakeSwap’s token (CAKE) is now listed on Coinhako!
What are PancakeSwap and CAKE?
PancakeSwap is a decentralized exchange operating on the BNB Smart Chain (BSC) that enables token trading and provides opportunities for earning through liquidity pools and staking. The decision to use BSC has resulted in significantly lower transaction costs and quicker trade execution compared to Ethereum-based alternatives. PancakeSwap also offers additional income-generating features such as Pancake Lottery, Pancake collectibles (NFTs), team battles, and Initial Farm Offering (IFO).
CAKE is the native token of PancakeSwap, where holders can propose and vote on platform modifications. The tokens can be staked in PancakeSwap's SYRUP liquidity pools, allowing users to earn SYRUP tokens that offer further rewards.
While there is no hard limit to the supply of CAKE, the team is looking into conducting regular token burns to make deflation higher than emission. At its peak, CAKE traded for USD $42.46 per token.
How does PancakeSwap work?
PancakeSwap enables users to trade any BEP20 crypto tokens (tokens built on the BNB Chain) in a decentralized manner through liquidity pools. Each pool consists of two different cryptocurrencies and offers a variable Annual Percentage Rate (APR) paid in CAKE tokens to depositors who stake their funds.
This system incentivizes users to stake crypto, essential for enabling trading for other users. For instance, PancakeSwap features a CAKE-BNB liquidity pool comprising its native CAKE tokens and BNB, the native token for the BNB Chain.
By depositing an equal amount of both tokens into the pool, users can earn CAKE tokens on their staked amount. With numerous liquidity pools available on PancakeSwap, APRs are determined by the cryptocurrencies in a pool and its size (i.e., the amount of funds). Initially high, APRs tend to decrease as a pool grows.
Why does PancakeSwap stand out?
PancakeSwap stands out for several reasons. As a decentralized exchange, it operates without a central authority, making it unique in the crypto trading realm. It functions as an automated market maker (AMM), utilizing smart contracts on a blockchain to facilitate crypto trading. PancakeSwap offers four main features:
Trade: Users can easily swap various crypto tokens without the need for an account, just by connecting a crypto wallet.
Earn: By depositing crypto tokens into PancakeSwap, users can earn rewards through liquidity pools, where funds are contributed by users.
Win: The platform hosts lotteries and trading competitions with crypto prizes on a regular basis.
NFTs: In addition to being a crypto exchange, PancakeSwap also serves as an NFT marketplace.
While there are other AMMs in the market, such as Uniswap and SushiSwap, PancakeSwap was not built on the Ethereum network but BNB Smart Chain to facilitate a smoother experience for its users.
What can you do with CAKE on Coinhako?
CAKE will be available for users to trade across all swap pairs on Coinhako.
To gain access to any of these trading pairs, you can either:
- Fund your SGD wallet on Coinhako instantly with PayNow (or any other supported payment method)
- Purchase CAKE instantly with Visa / Mastercard
Please note that the sending and receiving of CAKE will not be available for this release.
Risk Warning on Digital Payment Token Services
Hako Technology Pte Ltd ("Coinhako") is licensed to provide digital payment token services under the Payment Services Act 2019 (No. 2 of 2019).
The Monetary Authority of Singapore ("MAS") requires us to provide this risk warning to you as a customer of a digital payment token ("DPT") service provider.
Before you pay your DPT service provider any money or DPT, you should be aware of the following.
- Your DPT service provider is licensed by MAS to provide DPT services. Please note that this does not mean you will be able to recover all the money or DPTs you paid to your DPT service provider if your DPT service provider’s business fails.
- You should not transact in the DPT if you are not familiar with this DPT. This includes how the DPT is created, and how the DPT you intend to transact is transferred or held by your DPT service provider.
- You should be aware that the value of DPTs may fluctuate greatly. You should buy DPTs only if you are prepared to accept the risk of losing all of the money you put into such tokens.
- You should be aware that your DPT service provider, as part of its licence to provide DPT services, may offer services related to DPTs which are promoted as having a stable value, commonly known as “stablecoin”.
Visit: Coinhako.com/risk-disclosure for more information.