PancakeSwap (CAKE) - a cryptocurrency that allows for unprecedented returns on deposits

Pancake Swap (CAKE) is a decentralized cryptocurrency exchange, launched thanks to Binance Smart Chain (BSC). It is an automatic market maker that allows you to earn up to 300% per year on adding your cryptocurrencies to your liquidity pool in certain periods. This year it has already increased by over 1000%.

We continue the cycle of the Forex Club portal, in which we analyze and describe the largest, highest-valued, most interesting, most developmental, advanced and also the most controversial cryptocurrency projects around the world. Today is the time for a project that, according to many, is doomed to success. Why? Let's take a closer look at it.

How PancakeSwap (CAKE) works

PancakeSwap is a decentralized cryptocurrency exchange, operating from September 20, 2020. Almost everything is done automatically, thanks to the algorithms that oversee the liquidity pools. Thanks to this, it works faster and cheaper than the benchmark in this market, i.e. Ethereum. 

PancakeSwap, however, acts like a bond or stock company that pays dividends. It shares profits in return for providing liquidity to the markets. By investing our money here, we do not trade cryptocurrencies based on the order book. Our assets are lent to the liquidity pool, for which we receive remuneration in new tokens.

How the CAKE token works

PancakeSwap has its own token called CAKE. This is a constant trend in the DeFi market, where the names of tokens come mainly from dishes. Thanks to the token, you can provide liquidity in currency pools or simply stack it (i.e. put it on an interest-bearing deposit).

Thanks to the fact that the token works on a faster and cheaper network than Ethereum Binance SmartChain, we receive larger prizes and we do not have to wait several minutes from the transaction, but only a few seconds. Just send the token to your wallet, connect it to a decentralized exchange and add it to the liquidity pool.

Interestingly, CAKE tokens do not have to be bought, they can be bought. How to do it? You receive them for providing liquidity. For each block, the reward is 22 CAKE.

However, you can earn the most from farming. You can offer your tokens in over 100 different liquidity pools. The interest rate in them ranges from 15% to ... 300% per annum! Of course, it is volatile, because it all depends on how many funds are in the pool, but you can also use automatic selection, which will allow you to maximize profits, but at the highest risk. So you have to weigh them when choosing how many units you want to spend on farming, because in some pools you can also lose. As in any investment - not only in the cryptocurrency market - here you can also refer to the basic principle: less risk means less profit, and greater risk means greater (potentially) profit. 

Cryptocurrency Quote PancakeSwap (CAKE)

Currently, the CAKE cryptocurrency can be purchased on 122 cryptocurrency exchanges around the world, which translates into the huge popularity of tokens. As of August 18, 2021, 185 units of this cryptocurrency are in circulation. Each of them is valued at $ 231, which translates into a capitalization of almost $ 813 billion. The peak of trading was on April 21,26, 4, when CAKE was paid $ 30. The daily turnover of CAKE tokens amounts to approx. USD 2021 million. Initially, they were traded mainly on the PancakeSwap exchange, but now a large part of this cake has been taken over by the market leader - the largest in the world Binance cryptocurrency exchange.