First of all, a #DEX means (Decentralized exchange)… it is one of the tools used to access decentralized finance (DeFi).

We cannot discuss the topic of DEXs on the BSC without mentioning the leading platform of this blockchain; #PancakeSwap

Initially, PancakeSwap, created in September 2020, is a DEX that was built on the BNB Smart Chain (BSC) and to trade only BEP-20 tokens.

However, PancakeSwap has evolved and has extended its support to other blockchains like Ethereum, Solana, Polygon, and Arbitrum among others…

As a result, we can now trade all tokens from these blockchains using the wonderful PancakeSwap.


How did PANCAKESWAP manage to rise to the top of all the DEX?

Everyone's

Favorite DEX

This slogan is not just a simple phrase for them; they have made it as real as a golden turkey.

First of all; PANCAKESWAP handles around 140 billion dollars in transactions each month...

What is the secret of its unmatched popularity?

🔸Transaction fees significantly reduced and speed of transactions thanks to the BSC (around 300 transactions/second) unlike some other DEX on other chains…

🔸Liquidity provision and rewards… as it always works, users are incentivized to provide liquidity to these pools by depositing token pairs in exchange for LP Tokens, and are compensated in return by a portion of the transaction fees generated by the pool and tokens of $CAKE

In addition to all this, many other factors such as;

🔸Yield Farming, with very attractive APY returns, has attracted influxes of capital to the platform.

🔸Staking, users stake $CAKE tokens to earn more over a specified period.

🔸Accessibility to NFTs (Non-fungible Tokens).

🔸The introduction of IFOs, which allows the launch of new projects and thus offers a direct investment advantage to CAKE holders.

🔸And finally, lottery and prediction games… just like sports betting sites, you can also bet on the price movement of your chosen project over a specified period, and if you are right, you scoop the pot directly.

All these strategic factors have attracted a large number of users, thereby ensuring market depth and very low slippages, betting on the reduced costs of the #BSC have facilitated access to DeFi and improved the user experience for many novices and professionals through PancakeSwap… Moreover, the rapid growth experienced by the BSC with the emergence and migration of many new DeFi projects has also been a catalyst propelling the platform among the leaders in its category.

Binance has also added the PancakeSwap platform 🥞 via the 'Binance Wallet' feature to improve the effectiveness of the user experience and the security of user transactions.

⛔Disclaimer: The use of DEX has enormous general advantages, but they also present disadvantages such as:

🔸Lack of customer service: Once a mistake has been made, there is no way to contact anyone for help.

🔸Gas fees can be very high when trading using the Ethereum network.

🔸Vulnerability to bugs; when there is a bug with smart contracts, there could well be losses.

🔸For those who participate as liquidity providers in liquidity pools, there may be small losses if the value of the deposited pairs fluctuates too much.

#defi

#learn2earn