PancakeSwap: what it is and how it works
The anonymous team that developed PancakeSwap’s AMM Platform loves simplicity, straightforwardness and lots of facts seasoned with few words but lots of images of syrupy pancakes and gluttonous rabbits.
The spirit of CAKE, a young pilot platform launched at the end of September and developed on Binance Smart Chain in the development Immediate Edge project financed by CZ Zhao, as the standard bearer of a new DeFi wave, is encapsulated in the formula: gamification + speed + low fees + 3-digit APY – continuous movement.
„Don’t call it a roadmap“ on pain of collective ridicule in the chatroom by the admins, muscular digital gatekeepers working amusingly to keep the chatroom of 14,000 users in order, in an atmosphere of productive play 24 hours a day.
However, the To Do List contains several goals that the team has achieved and many interesting developments that combine the NFT world with lending, decentralised exchange-swap development, user interface customisation and other still top secret ideas.
The tokenomics adopted on the platform that has reached the top of the DeFi rankings for BSC, and aims to overtake projects such as Uniswap and Sushiswap over time, allows for a kind of miraculous „balance over chaos“ effect, represented by the „CAKE“ token that has become almost a cult of food farming in this magical Q4 2020.
Without a hard cap, CAKE has a potentially infinite supply, but all the game systems offered within the platform contribute to the „burning“ mechanism and rebalance the emissions of 40 CAKE tokens every 3 seconds by redistributing them in the farms, in the pools for simple staking, or in the lottery or even in the Initial Farm Offering (auctions for the launch of new tokens that can be purchased in absolute preview with
LP token CAKE/BNB).
Different percentages for each sector are then allocated to a blind address and then burned off, keeping the supply in dynamic equilibrium.
And it is only thanks to this complex system and the lack of initial hard-cap that CAKE can guarantee triple-digit APRs, which when combined with compounding, i.e. reinvestment of the product, quickly achieve remarkable results for those seeking maximum yield from a stake.
The particular position of Binance as the „prodigal son“, underlined by various tweets from CEO CZ Zhao who observes with great attention the development of the Defi galaxy on BSC, has allowed the Chefs to be able to often adopt in preview the coins listed on the Launchpad, thus attracting many new users interested in continuing the farming of tokens, taking advantage of the disproportionate interest rates that PancakeSwap offers.
The Italian CAKE community
Intrigued by PancakeSwap and CAKE rabbits, four Italian digital Eldorado seekers found themselves in the buzzing international chat a bit dazed by over 14,000 users and decided to replicate and simplify the experience for Italian users, sometimes lacking in know-how or intimidated by the farming sector, until now seen as a perilous and fascinating niche of the crypto world.
From the fun and teamwork of Platypus, Andrea, Marco and MitiTT (insider dev of the project) was born the unofficial community that you can find on Telegram.
Here you can get advice and live help to set up the devices that allow you to set the Binance Smart Chain as an alternative network to Ethereum on your Metamask, Trustwallet, Mathwallet and other devices.
In short, the revolution of the crypto world, as some Italian youtubers have correctly interpreted it, also passes through the gaming experience which, if supported by an effective and credible network such as Binance, can bring greater security to the DeFi sector, contributing to the progressive adoption of models and projects that until now were considered a niche.