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Everything About Pancake Swap: What is Pancake Swap, and How Does it Work?


Original Content- Business Upside India

The rise of Decentralized Finance (DeFi) has opened the door to new financial innovations focused on speed, autonomy, and inclusivity. PancakeSwap, the BNB Chain variation of decentralized exchanges, is an excellent example of such a market. What is Pancake Swap? It is one of the most well-known DApps.

What is Pancake Swap? A native to BNB Chain, PancakeSwap is a decentralized exchange. It is comparable to well-known platforms like UniSwap, where users exchange cryptocurrencies for others without the involvement of intermediate services. The sole distinction is that the PancakeSwap wallet concentrates on BEP20 tokens, a particular token standard created by Binance. How Does Pancake Swap Work? Decentralized exchanges employ a unique mechanism called an “automated market maker” (AMM). They eliminate the need for order books or any middleman entity to conduct trades. Since traders deal with liquidity pools rather than counterparties, there is no requirement for an order matching mechanism. The term “liquidity pool” refers to the sum of money investors have placed in smart contracts to supply traders with liquidity. Read More

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