TL;DR
- PancakeSwap is a decentralized exchange built on Binance Smart Chain launched in 2020.
- The platform offers great liquidity, low transaction fees, and other attractive features.
- However, PancakeSwap only supports a very limited 135 cryptocurrencies as well as no official customer support service.
Introduction
PancakeSwap is a top-performing decentralized exchange built on the Binance Smart Chain. It offers users a range of features and functionality, including yield farming, staking, and NFT trading. However, the platform also could use some improvements.
In this comprehensive review, we will review every aspect of PancakeSwap, as well as compare it with other popular DEXs to see how it stacks up.
What is PancakeSwap?
PancakeSwap is a decentralized exchange built on the Binance Smart Chain (BSC), one of the most popular blockchain platforms. It allows users to trade cryptocurrencies without relying on a centralized authority or middleman.
PancakeSwap was launched in September 2020 and quickly became one of the most popular DEXs on the BSC network.
PancakeSwap’s Features and Functionality
Supported cryptocurrencies
The platform exchange currently supports 135 cryptocurrencies including TetherUSD, Baby Doge Coin, XRP, TRON, etc.
PancakeSwap primarily supports BSC-based tokens, which are relatively new but have gained significant popularity in recent months.
The platform also provides support for several renowned cryptocurrencies like Bitcoin, Ethereum, and Binance Coin.
Transaction fees
Compared to other DEXs like Uniswap or Sushiswap, PancakeSwap offers notably lower transaction fees. This is because it is built on the Binance Smart Chain, which has lower gas fees compared to the Ethereum network.
Moreover, the platform charges a 0.2% fee on each trade, which is significantly lower than traditional centralized exchanges.
Liquidity
PancakeSwap has a high level of liquidity, which means that there are many buyers and sellers on the platform at any given time. Users are guaranteed a fair price for their trades, and this speeds up transactions.
Security
PancakeSwap has strong security measures in place to safeguard your money, such as a bug bounty program. Additionally, the platform secures user cash using multi-sig wallets.
However, there is always a chance of a hack, as was the case in March 2021 when the platform went offline due to a DNS hijack. Luckily for us, PancakeSwap is a non-custodial DEX, which means that it never holds your assets directly. As a result, any hacker cannot take anything from you.
Payment methods
PancakeSwap accepts a number of payment options, including Bitcoin, Ethereum, and Binance Coin. Other cryptocurrencies supported by the Binance Smart Chain are also usable by users.
Since PancakeSwap does not accept deposits in fiat money, you need to use third-party payment providers if you want to buy cryptocurrencies using fiat currencies.
Additional features
Yielding
PancakeSwap’s yield farming feature provides an opportunity to earn passive income. Several of the yield farms on the platform require that you invest two tokens in order to receive the LP tokens specific to that farm.
For example, when you deposit your CAKE and WBNB to a liquidity pool, you will obtain CAKE-WBNB-LP tokens, the quantity of which corresponds to your share of the corresponding pool.
Staking
You also have the option of earning rewards by staking their CAKE tokens in addition to yield farming. The platform’s transaction fees are used to fund the prizes.
NFTs
Recently, PancakeSwap launched support for non-fungible tokens (NFTs), which have grown in popularity recently. On the platform’s NFT marketplace, users can purchase and sell NFTs.
PancakeSwap’s User Experience
Ease of use
The platform has a simple and intutive interface that makes it easy for even beginner traders to use.
Customer service
PancakeSwap does not officially offer customer service that you can get in touch with. On the PancakeSwap website, there is a troubleshooting page that lists common issues like “price impact is too high” and “PancakeSwap router has expired,” along with fixes and an explanation of why they happened.
Thankfully, the platform features a vibrant community that is always available to help users.
User’s feedbacks
The majority of users have expressed great satisfaction with PancakeSwap. Customers enjoy the platform’s user-friendly interface, minimal transaction costs, and high liquidity. Nonetheless, some users have voiced worries regarding the limited cryptocurrency options and the dangers of yield farming.
PancakeSwap Review: Pros and cons
As you can see, PancakeSwap offers several benefits, such as low transaction fees and high liquidity, alongside some drawbacks like limited cryptocurrency options and limited customer support, etc.
| Pros | Cons |
| Low transaction fees High liquidity Yield farming Security User-friendly interface | Limited cryptocurrency Limited customer support |
PancakeSwap vs other DEXs
PancakeSwap vs Sushiswap
Launched in 2020, SushiSwap is a decentralized exchange based on the Ethereum blockchain. It provides options for yield farming and staking in addition to allowing users to trade, swap, and provide liquidity for different cryptocurrencies.
While both PancakeSwap and Sushiswap offer similar features, PancakeSwap has lower transaction fees and higher liquidity. However, Sushiswap offers a wider range of cryptocurrencies.
PancakeSwap vs Uniswap
UniSwap is a decentralized exchange built on the Ethereum blockchain, launched in 2018. It allows users to trade, swap, and provide liquidity for various cryptocurrencies, and also supports yield farming and governance through its UNI token.
While PancakeSwap and Uniswap offer similar features, the former has lower transaction fees and higher liquidity. Additionally, PancakeSwap’s yield farming capabilities make it an attractive option for users looking to earn passive income.
Final thoughts
PancakeSwap is a decentralized exchange that has become increasingly popular. Even though PancakeSwap might not be the best option for users wishing to trade a variety of cryptocurrencies, it is a great alternative for those looking to exchange BSC-based tokens.
