The cryptocurrency $CAKE is the native token of PancakeSwap, one of the largest decentralized exchanges (DEX) operating on the BNB Chain (formerly Binance Smart Chain, or BSC). Below are the key points about the project and the $CAKE token:
---
🔍 What is PancakeSwap?
PancakeSwap is a DEX that allows:
Exchanging BEP-20 tokens (the standard of the BNB Chain)
Providing liquidity and receiving rewards
Participating in yield farming and staking
Buying NFTs
Participating in auctions, lotteries, and new token launches via IFOs (Initial Farm Offerings)
It is similar to Uniswap (based on Ethereum), but stands out for offering lower fees and faster transactions due to the BNB Chain.
---
💰 What is the token $CAKE ?
Cake is the utility and governance token of PancakeSwap.
Main functions:
Staking in Syrup Pools (earning more CAKE or other tokens)
Participation in Farms to generate yields by providing liquidity
Governance voting (proposals for changes to the protocol)
Lottery and NFTs within the platform
---
📉 Tokenomics (Token Economy)
The token has undergone several changes in its monetary policy. It was previously inflationary, but the community and developers decided to:
Reduce the issuance of new tokens
Introduce burning mechanisms to make the $CAKE more deflationary
Limit the total supply (there are discussions about a hard cap for the token)