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).
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
Well-facilitated Security protocol
Behavior of transaction
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.