Review on PancakeSwap by Stephen Toluwani
My number one Decentralised Exchange On BSC
Ever since my first introduction to the Binance Smart Chain and Liquidity mining, pool staking and Defi of its sort, PancakeSwap became my go-to decentralised exchange. Due to the low fee structure of The Binance Smart Chain, I started to use PancakeSwap to trade and provide liquidity. PancakeSwap being commissioned by Binance, gives it a good recommendation and still someways or not, appears to have a centralised controlling power by Binance. But the exchange is still very much good. The TVL which the exchange has has begun to outpace that of its Ethereum clone, Uniswap. The number of daily visitors also keeps climbing daily.
The use of the exchange services is as simple as a two way step. Approve a transaction and proceed with the purchase. In it's liquidity mining, fees of 0.3% are shared between LP providers and the exchange. To further increase earnings, Farms and Pools are set up by PancakeSwap. Issues of Impermanent Loss appear but are worth it at the end. As the exchange is decentralised, you shouldn't be afraid as your funds are still locked in your wallet. Though I may warn you, beingbeing a decentralised exchange, PancakeSwap has no say on the tokens listed on its platform as one can purchase a wrong arbitrary token which they might not be able to sell afterwards
Pros
- PancakeSwap uses an Automated Market Maker model to provide liquidity for the exchange
- PancakeSwap is supported by Binance, this goes a long way to support the exchange
- The Total Value Locked into PancakeSwap exchange keeps reaching new highs and number of visitors are always on the rise. Interest in the exchange keeps building up daily
- Farming and pools on PancakeSwap are a good way to earn from Defi protocols
Cons
- PancakeSwap was once susceptible to DNS attack that led to users giving off their private keys
- There is a lot of competition arising for the exchange
