The crypto sector has been undergoing massive changes in the last few months, with tokens driving up. With this, traders are flocking into the market to get a piece from the market’s profits. But while it looks like centralized tokens are stealing the show, decentralized tokens are also skyrocketing in value. This has pushed the majority of the traders in the market to the decentralized finance sector. The decentralized finance sector provides traders with several services, such as swapping and lending. With this, traders are open to various decentralized exchanges to carry out their activities. In this article, we will be looking at the major differences between PancakeSwap and SushiSwap.
What is Decentralized Finance?
Decentralized Finance is a system that provides traders with financial services which are on different blockchains. This means that traders can carry out their services without the involvement of financial third parties. With that, traders are not required to submit any document for identification as sellers and buyers meet via a peer-to-peer system. To make this system possible, most decentralized exchanges in the sector make use of smart contracts. Facilitating smart contracts allows traders to communicate with the blockchain to carry out their respective services on the decentralized exchange.
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What are Decentralized Exchanges?
Decentralized exchanges are the main embodiment of the decentralized finance sector. They are platforms that traders use to carry out their activities in the sector. Traders use decentralized exchanges to carry out various services such as swapping, lending, and borrowing via communication with smart contracts. Decentralized exchanges deploy their respective smart contracts, which can be used for different purposes. The highlight of the exchanges is that they allow traders to carry out their business without the need for registration, unlike centralized exchanges.
What is PancakeSwap?
PancakeSwap is a Binance Smart Chain-based decentralized exchange that was launched in September 2020. Traders in the platform can trade and swap any token of their choice using its liquidity pools. Like most decentralized exchanges in the sector, traders can effectively carry out their activities without the need for an intermediary.
PancakeSwap uses an Automated Market Marker, which relies on the usage of smart contracts to carry out transactions. PancakeSwap owns its liquidity pools called SYRUP pools, while its native token is called CAKE. The decentralized exchange is the go-to for traders who intend to enter the yield farming or staking business. Presently, PancakeSwap is ranked #2 on CoinMarketCap with a daily trading volume of $3,578,110,152.
Unique Features Of PancakeSwap
Traders who intend to use PancakeSwap to carry out their trading activities must connect a supported DEX wallet to the platform. PancakeSwap supports wallets such as Trust Wallet, Math Wallet,…
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