A Brief History of PancakeSwap
A decentralized exchange with an automated market maker PancakeSwap was launched in the fall of 2020 by anonymous developers. The service is powered by Binance Smart Chain.
Trading on the market is carried out as the form of trading through a liquidity pool. The service was launched during the growing popularity of Defi.
In comparison with competitors working on the Ethereum blockchain, PancakeSwap proposed its users cheap fees and fast transactions. As a result, the project became popular. Cake Token is an in-system token of the PancakeSwap platform launched on the Binance Smart Chain blockchain in September 2020.
Purpose of the CAKE token
- Managing the platform by voting for proposals or submitting your own in order to modernize the PancakeSwap protocol.
- The token is the main means of payment on the platform. In addition, It is used for staking, farming, prediction and participation in lotteries.
Features of the CAKE token
- There is a regular burning of 10% of CAKE tokens that users have spent on lotteries or other platform products. Thus, the token has a regulated issue.
- The exchange is actively developing and constantly offers its users new opportunities. Against the backdrop of the success of the project, investors' confidence in the CAKE token is growing.
Disadvantages of the CAKE token
- PancakeSwap is a relatively new project and is exposed to high volatility. Part of the crypto community is questioning the potential of the token.