No doubt that Binance Smart Chain is becoming one of the most popular chains right now for DeFi and NFT transactions. Since its launch last year, only recently its popularity grew exponentially thanks to one of it’s most popular Dapp- PancakeSwap.
PancakeSwap is an AMM (automated market maker) and Yield farm built on Binance Smart Chain. It is a feature packed platform, with multiple ways of earning passive income. To get started with Binance Smart Chain (BSC) and PancakeSwap you’d need a “BSC” compatible wallet like Trust wallet and Safepal wallet on mobile, or Metamask and Julwallet Extensions on desktop.
Julwallet Extension for Desktop may be more convenient, as you wont need to add the “BSC chain” to the wallet manually, but for this article I will use Metamask, so you can see how its done.
After installing the Metamask Extension and backing up your recovery phrase (very important), Click the area in the image above that says “Binance Smart Chain”. In your case it might say Ëthereum Mainnet” instead. Click on “Custom RPC” and type in the values like in the image above.
Network Name: Binance Smart Chain
New RPC URL: https://bsc-dataseed.binance.org
Chain ID: 56
Currency Symbol: BNB
Block Explorer URL: https://www.bscscan.com
Click Save. You are now ready to interact with the Binance Smart Chain and PancakeSwap.
Exchange and Liquidity
To make transactions on PancakeSwap you will need BEP20 (BSC) $BNB in your wallet for transaction fees (usually less than $1 per transaction). You can Exchange between other BEP20 tokens on PancakeSwap, and also supply liquidity to a pool to earn from trading fees.
Generated LP (Liquidity provider) tokens after depositing to a pool can also be staked and used to earn more $CAKE (PancakeSwap governance token). As you can see, I have added liquidity to the CAKE-BNB pool and earned “2.112” LP tokens.
I have also staked the 2.112 LP tokens in the CAKE-BNB LP farm to earn more $CAKE!
One of my favorite features is its Pools. On PancakeSwap you have the freedom to stake your $CAKE tokens and earn different tokens, with APR up to 900%. Though the pools have limited supply, this is one of the most powerful reasons why you should have some $CAKE.
The PancakeSwap lottery is a fun way to test your luck and win big. The community so far has been participating actively in this part of the DeFi AMM. Fingers crossed I win too one day!
PancakeSwap still has its IFO feature, where startups can utilize PancakeSwaps vast community to get a starting boost. The IFO also benefits Liquidity Providers, as they can deposit their CAKE-BNB LP tokens to earn a share from the IFO. The bigger your LP, the bigger your share from the total IFO reward.
Other features like teams, NFT, points etc are also in the works. Where users will be rewarded for performing tasks etc. PancakeSwap has a lot planned, It would almost be an offence not to get familiar with what they are bringing next. Checkout their To-Do List.0