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Cakes

3 Reasons to Buy PancakeSwap – Motley Fool

Summary

Have you ever wanted to have your Cake and eat it too? With PancakeSwap’s (CRYPTO:CAKE) native token, Cake, there is an emerging opportunity to invest in a diverse ecosystem and own a governance token with real utility.

PancakeSwap is a decentralized exchange (DEX), allowing investors to swap BEP-20 tokens. BEP-20 tokens are tokens built on top of the Binance Smart Chain that don’t have their own blockchain. The platform is built on Binance Smart Chain instead of Ethereum, giving it …….

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Have you ever wanted to have your Cake and eat it too? With PancakeSwap‘s (CRYPTO:CAKE) native token, Cake, there is an emerging opportunity to invest in a diverse ecosystem and own a governance token with real utility.

PancakeSwap is a decentralized exchange (DEX), allowing investors to swap BEP-20 tokens. BEP-20 tokens are tokens built on top of the Binance Smart Chain that don’t have their own blockchain. The platform is built on Binance Smart Chain instead of Ethereum, giving it a number of advantages. Early investors in Cake have been on a wild ride this past year — the token has appreciated more than 30-fold in price since January.

Given the strong secular growth trend driving the decentralized finance (DeFi) space, and PancakeSwap’s impressive user base — the largest for any decentralized application (dApp), there are a number of reasons cryptocurrency investors are looking at Cake right now.

Here are three reasons Cake could be a game-changing investment.

Image source: GETTY IMAGES.

1. Lower fees

It’s impossible to talk about PancakeSwap without mentioning its main rival and largest competitor, Uniswap (CRYPTO: UNI), which is based on the Ethereum (CRYPTO: ETH) blockchain.

Uniswap, although older and more established, is also burdened by the recent stagnation in the Ethereum network. Fees on the Ethereum blockchain rise daily, and with those growing gas fees, Ethereum 2.0 may seem like a distant reality at times.

PancakeSwap does not suffer from these problems. Its fees are a much more manageable 0.2% for users who use liquidity in their pools. Additionally, these fees are not paid in Ether. This allows for more transactions and higher profit margins for traders and investors. These are all great things for the price action of a token.

Competitive transaction fees are among the main drivers of this network’s popularity, and are a key explanation as to how PancakeSwap has attracted such an enormous community of users. A quick look at social media will show just how passionately many investors feel about this project.

2. Staking options

Staking, or the process of putting one’s tokens up to assist in validating transactions on a blockchain or providing liquidity to decentralized exchanges, is one of the key passive income opportunities crypto investors have. Through staking, investors can earn additional tokens on blockchains using a proof-of-stake validation model, or in liquidity pools decentralized exchanges use to facilitate trades.

Investors may get light-headed when looking at the annual percentage yields (APYs) of the crypto investments on various platforms. Let’s take a look at what’s possible when one stakes Cake in a Syrup pool on PancakeSwap.

Currently, there are 16 tokens available for staking in the network’s pools, with the most-staked pool, Auto CAKE, returning an APY of 72.70%. There are pools with even greater rewards …….

Source: https://www.fool.com/investing/2021/11/23/3-reasons-to-buy-pancake-swap/