PancakeSwap

CAKE is the crypto asset of the PancakeSwap decentralized exchange (DEX) and ecosystem. PancakeSwap is a DEX built on BNB Smart Chain (BSC) that facilitates the trading of BEP-20 tokens (BSC-based assets) via liquidity pools.

PancakeSwap DEX

PancakeSwap is a BSC-based DEX facilitating trading in an on-chain format without a middleman, via liquidity pools. This type of exchange is categorized as an automated market maker (AMM) platform. AMMs utilize liquidity pools for trading, with liquidity providers depositing pairs of assets into specific smart contracts on an AMM’s native blockchain in return for a share of the fees paid when traders use the AMM platform. When traders use the front end of an AMM DEX, they are essentially trading their assets with a related pool and paying a trading fee, which goes to those liquidity providers.

Essentially, holders of BNB or BEP-20 tokens deposit their assets into smart contract-controlled liquidity pools on BNB Smart Chain and then receive payouts based on related PancakeSwap trading fees. This creates pools of assets with which users can trade via the PancakeSwap platform and a compatible crypto wallet. 

PancakeSwap branched out following its launch, providing activities in addition to its DEX such as lottery events and prediction opportunities.

PancakeSwap crypto token usage

A BEP-20 token, CAKE is used in a number of ways within the PancakeSwap world, such as staking. Participants use BNB to pay fees on the PancakeSwap DEX. 

Interested parties can deposit asset pairs into liquidity pools as liquidity providers and receive liquidity provider tokens (LP tokens) in return, which pay out profits based on PancakeSwap trading fees. Users can then stake their LP tokens in PancakeSwap farms and earn CAKE tokens. CAKE holders can also score other tokens by simply staking their CAKE tokens in Syrup Pools. 

CAKE is inflationary with no maximum token supply, although the PancakeSwap ecosystem does incorporate certain methods of token reduction to keep inflation at bay. 

CAKE price data

See the CAKE chart above for CAKE price history. The CAKE-to-USD live price is listed above the CAKE crypto price chart. PancakeSwap price (CAKE price) trades in various ranges depending on buyers and sellers of the token, so CAKE price today may differ from CAKE price live on a later date.