Disclaimer: This is a user generated content submitted by a member of the WriteUpCafe Community. The views and writings here reflect that of the author and not of WriteUpCafe. If you have any complaints regarding this post kindly report it to us.

PancakeSwap clone is a variant and decentralized exchange platform of the Binance smart chain. It is also a resemblance to UniSwap and SushiSwap. Since the conventional finance systems lacked the independent authorization and speed of access, Decentralized finance (DeFi) adapts certain new technologies.

PancakeSwap – an outline

PancakeSwap is a decentralized exchange that resembles other existing platforms like UniSwap where customers swap their coins as a replacement with other coins without any intermediaries. But, it functions to replace only the BEP20 tokens (Binance).

BEP20
It is a token standard of Binance which consist of a set of functions that correlates with the main Binance system of dapps and wallets etc.

Mechanism of PancakeSwap

Generally, a decentralized exchange platform employs a facility known as an Automated market maker abbreviated as AMM so that the system need not require the indulgence of any middlemen in trading.
In addition, the system facilitates the buyers to swap their coins with other coins against the liquidity pool instead of waiting for the sellers. A liquidity pool is a reservoir in the smart contract that collects the funds deposited by the customers or users. Therefore, buyers now can easily get their tokens directly from the pool without delaying it with the order matching system.

Main fingerprints of PancakeSwap:

Automated market maker
Audit and report
Traded tokens
Well-facilitated Security protocol
Behavior of transaction
Analytics

Bottom Line
Therefore, I conclude that PancakeSwap is not only a branch of Binance but also plays a vital role in the decentralized exchange of tokens with autonomy and speed which is an appreciable technology to secure financial transactions.

https://www.appdupe.com/
Do you like Tom Oliver's articles? Follow on social!

Login

Welcome to WriteUpCafe Community

Join our community to engage with fellow bloggers and increase the visibility of your blog.
Join WriteUpCafe