Why Create a BSC Powered DEX Like PancakeSwap?

Whether you’re a proficient trader or new to the world of cryptocurrency, one thing is clear decentralized exchanges (DEXs) are changing the way people used to think about trading digital assets. Among the numerous DEXs crafted on the Binance Smart Chain (BSC), PancakeSwap has emerged as the top choice for traders and liquidity providers.

There was a time when it was difficult to imagine a world where you could trade directly with another person without the need for a centralized authority, but DEXs are the problem solvers. Though PancakeSwap Binance Smart Chain is one of the best-preferred platforms offering more than what a DEX offers.

This article will make you delve deeper into the world of DEX- PancakeSwap, which has all its versions launched on Binance Smart Chain to give a clear picture of the potential of BSC blockchain. 

Why delay, let’s start then!

What is PancakeSwap?

In the vibrant world of decentralized finance, where innovation knows no bounds, PancakeSwap emerges as a delightful twist on traditional exchanges. Basically, it is a decentralized exchange (DEX) built on the Binance Smart Chain (BSC). It provides a platform for cryptopreneurs to trade directly with one another without the need for intermediaries like banks or brokers.

Despite its first version launch in September 2020, Pancakeswap BSC still ranks among the top as one of the most used exchanges for its innovative approach to liquidity provision and yield farming. Recently, the third version of PancakeSwap is launched which is again on Binance Smart Chain for leveraging its potential features.

Key Traits of Pancakeswap BSC

PancakeSwap boasts a whole list of noteworthy features that are contributing to drawing more crypto enthusiasts, some of its key features are-

• Token Swapping 

PancakeSwap allows users to swap one cryptocurrency for another directly on the platform which enables seamless and efficient trading while offering a wide selection of tokens for users to choose from.

• Liquidity Pools

One of PancakeSwap’s unique features is its liquidity pools. Users can become liquidity providers by depositing their tokens into these pools. By doing so, they contribute to the liquidity of the platform and earn rewards in the form of trading fees and additional tokens.

• Yield Farming 

PancakeSwap BSC incorporates yield farming, a process where users can stake their tokens in farming pools to earn additional tokens as rewards. This incentivizes users to provide liquidity and participate actively in the platform, promoting a vibrant ecosystem.

• Syrup Pools 

Syrup Pools provide an opportunity for users to stake the native token of PancakeSwap, called CAKE, and earn rewards in other tokens. This feature enhances the utility of the CAKE token and encourages its adoption within the ecosystem.

• User-Friendly Interface 

PancakeSwap provides an intuitive and user-friendly interface, making it accessible to both experienced crypto enthusiasts and newcomers. The platform’s interface allows for easy navigation and seamless execution of trades and interactions.

• Community Governance 

PancakeSwap embraces a community-driven approach to governance. Token holders can participate in decision-making processes through voting, ensuring that the platform evolves according to the collective interests of its users.

These features have contributed to PancakeSwap’s success and appeal, providing users with a decentralized and feature-rich trading experience while incentivizing active participation and rewarding liquidity providers.

Why PancakeSwap is gaining popularity?

• Pocket-friendly structure 

Operation on PancakeSwap Binance Smart Chain offers lower transaction fees comparatively. This has made it an attractive option for traders and users who wish to minimize their transaction costs.

• Speedier Processing

Transactions on PancakeSwap are processed quickly, thanks to the Binance Smart Chain’s high-speed processing capabilities. This has made it an efficient platform for traders who value speed and timeliness.

• Innovative Features 

PancakeSwap offers innovative features, such as liquidity pools and yield farming, that incentivizes users to participate actively in the platform and promote a vibrant ecosystem.

• Wide Selection of Tokens 

PancakeSwap offers a wide selection of tokens for trading, providing users with a diverse range of options to choose from.

• Increasing Adoption 

As more users discover PancakeSwap and its benefits, its adoption has been increasing rapidly, leading to more liquidity and activity on the platform.

The aforementioned factors have contributed to PancakeSwap’s growing popularity and have made it a formidable competitor in the decentralized exchange landscape.

Rationale Behind PancakeSwap V3 Launch on BSC

After establishing itself as the most preferred DEX on Binance Smart Chain, it didn’t stop there and the latest version of PancakeSwap is again here in the market on the same blockchain. Have you ever thought why did PancakeSwap choose the Binance Smart Chain (BSC) as its preferred companion for its second and third versions?

• Low Transaction Fees

BSC offers significantly lower transaction fees making it more cost-effective for users to trade, provide liquidity, and participate in various activities on PancakeSwap.

• High Transaction Speed 

BSC has faster block confirmation times, allowing for quicker transaction processing enables a smoother and more efficient trading experience on PancakeSwap.

• Ecosystem Integration 

BSC is part of the larger Binance ecosystem, which includes the Binance exchange and other Binance-related products and services. By building on BSC, PancakeSwap benefits from the strong user base and existing infrastructure within the Binance ecosystem, leading to increased adoption and liquidity.

• Interoperability with Ethereum 

BSC is designed to be compatible with the Ethereum Virtual Machine (EVM), allowing for seamless integration and migration of Ethereum-based projects to BSC. This interoperability has attracted PancakeSwap developers and similar projects seeking to leverage the benefits of BSC while maintaining compatibility with the Ethereum ecosystem.

• Community and User Base 

PancakeSwap gained a significant user base and community support on BSC, which further contributed to its preference for the network. The active and engaged BSC community has helped drive the growth and success of PancakeSwap.

Role of BEP20 token on Pancakeswap

Within the PancakeSwap ecosystem, BEP20 tokens play a crucial role in facilitating trading, liquidity provision, and community engagement. Among these tokens, CAKE, the native token of PancakeSwap, shines brightly, offering a range of unique features and benefits to its holders-

• Governance Power 

CAKE holders have the power to participate in decision-making for PancakeSwap. They can propose and vote on important changes, such as fee adjustments or listing new tokens. It’s like having a voice in shaping the future of PancakeSwap.

• Staking Rewards 

By staking Binance Smart Chain token on PancakeSwap, users can earn rewards. It’s like depositing your CAKE in a special savings account that grows over time. The longer you stake, the more rewards you can earn.

• Farming Opportunities 

CAKE holders can also participate in farming wherein by staking CAKE, users can earn additional tokens as rewards, creating opportunities for additional profits.

• Syrup Pools 

With Syrup Pools, users can stake their CAKE tokens and earn other tokens in return. It’s like dipping your CAKE into a delicious pool of rewards, gaining exposure to a variety of tokens beyond just CAKE.

• Fee Reduction 

Holding BEP20 token on PancakeSwap comes with perks, including fee reduction benefits. When you hold CAKE, you can enjoy lower fees when trading on PancakeSwap. It helps save money and makes it more affordable to trade.

How to Get Your BEP20 Token on PancakeSwap?

To align your Bep20 token development on PancakeSwap quickly, you can follow these steps:

1. Prepare Your BEP20 Token on the Binance Smart Chain and ensure that your token contract is secure and has undergone thorough testing.

2. Obtain a sufficient supply of your BEP20 token available for liquidity provision and trading on PancakeSwap.

3. Connect your preferred wallet, such as MetaMask, to the Binance Smart Chain network. Set up the necessary network configuration to interact with BEP20 tokens.

4. Obtain BNB (Binance Coin) for Transaction Fees in your wallet to cover the transaction fees required for interacting with the Binance Smart Chain network.

5. Now, go to the PancakeSwap official website and click on “Trade” in the menu to access the trading interface.

6. Click on “Pool” in the menu and then select “Add Liquidity.” Choose your BEP20 token and an equivalent value of BNB to provide liquidity. Specify the desired ratio and confirm the transaction.

7. After providing liquidity, you will have the option to create a trading pair for your BEP20 token. Specify the trading pair details, such as your token’s contract address, symbol, and other relevant information.

8. Review the transaction details and confirm any necessary approvals or confirmations to complete the liquidity provision and trading pair creation processes.

9. Once your token is listed on PancakeSwap, it’s essential to market it to increase visibility and attract potential traders and investors, so focus on it too.

This is a simple process though it is crucial to gather the required information and have a hold on security and compliance with relevant regulations to ensure a successful and safe token launch.

How Antier can help?

Cryptocurrency has gained significant attention and popularity among investors worldwide for its decentralized nature coupled with its potential for high returns. This is somehow pushing the need for DEXs and one of them- Pancakeswap Binance Smart Chain is trending among crypto traders for its package of features and benefits blended with those of the leading blockchain.

Planning to get a DEX crafted for your business expansion, then approach the market experts and get a PancakeSwap-like DEX prepared for you. Antier is a prominent name among modern IT companies for its exclusive blockchain development services backed by its years of experience and technical prowess in rendering the best services. Our team of blockchain experts is always in sync with the ongoing trends and provides suitable solutions for your business needs. 

What are you waiting for then? Get in touch now!