CAKE - The most valuable cake in the world?
As the platform currency of Pancakeswap, the largest decentralized exchange (DEX) built on BSC (BSC), do you know?
Could this be the most expensive cake in the world? CAKE was first issued on September 18, 2020. The initial price at that time was US$0.4. After one year, it has increased by 400 times!
If you haven’t used a decentralized exchange yet, let me take you through Pancakeswap and CAKE so that you can better understand the basic introduction to decentralized exchanges.
What is PancakeSwap?
PancakeSwap 也称松饼交易所，是由一群匿名开发者在2020 年9 月24 日时，基于币安智能链（Binance Smart Contract, BSC）协议及自动做市商（Automated Market Maker, AMM）模型，所打造的去中心化交易所，支援利用币安智能链BEP-20 协议所铸造的加密货币交易，是目前提供最多交易选项的去中心化交易平台，有超过4000 种的交易对。
Ps. It is said that the official reason why the trading platform was named PancakeSwap is because many people in the development team like "breakfast" and "rabbit".
PancakeSwap officially upgraded the platform from the first generation of V1 to the V2 version on April 23, 2021. At this time, most of the old transactions and functions must be transferred from V1 to the upgraded V2 platform, and on April 2023 In the first week of this month, the official announced again that the current PancakeSwap V2 will be upgraded to V3.
PancakeSwap decentralized exchange data ranking
随着越来越多公链及Layer2 网路出现，PancakeSwap 现在也开始支援不同链的交易，例如以太坊（Ethereum)、Aptos，目前PancakeSwap 在不同区块链主网上市值都是名列前茅，可以参考下方2023 年3 月CoinMarkertCap (CMC)上的去中心化交易所数据排名：
BSC：第1 名
Aptos: 1st place
Ethereum: 14th person
All blockchain networks: 5th
What is CAKE and is it delicious?
CAKE, which looks delicious, is the application token of PancakeSwap, the largest decentralized exchange on BSC. It was first built based on BSC's BEP20 protocol, and was later used in other public chains such as Ethereum. and cast on Aptos.
CAKE's main application focuses on PancakeSwap's many functions and products. The transaction volume used on the Shijia platform alone is quite large. After all, it is the largest decentralized exchange on BSC, and BSC is currently among the top Among the thousands of cryptocurrencies in today's blockchain, CAKE ranks 70th in CoinMarketCap's reference ranking for market value.
CAKE Token Economy
CAKE 原本总供给量是无上限的，但自2021 年PancakeSwap 从V1 升级到V2 后，CAKE 的总供应量被修改成上限7.5 亿枚，CAKE 被使用在PancakeSwap 时，一直都有代币销毁机制，借此机制达到通缩的效果，使CAKE 在整体网路中让销毁速度平均快于铸造速度。
Currently, about 75% of the CAKEs created in each block will be directly destroyed. In addition to the destruction of the deflation mechanism, we are also constantly optimizing and adding functions on PancakeSwap to attract more participants who are willing to use more tool, and lock CAKE on the platform, thus reducing the number of tokens circulating in the market.
In addition, when CAKE is generated from staking harvest (claim withdrawal profit) on PancakeSwap, 9.09% of the overall staking harvest will be minted simultaneously, and these CAKE will be directly transferred to the official team’s wallet address. These tokens will be automatically released every week. are destroyed and will never be circulated into the market for trading.
To put it simply, if the stakers harvest 100 CAKE, then 9.09 CAKE will be minted at the same time and sent to the team address simultaneously. All CAKE sent to the team address will be automatically destroyed in the following week.
Where can CAKE be used?
It can be mainly applied to the overall PancakeSwap ecosystem, such as Syrup syrup pool, Farm farm, Lottery lottery and IFO initial farm issuance tokens and other diverse tools.
1) Syrup syrup tank
一种类似挖K的机制，让使用者能透过质押来赚取报酬。**使用者可自行挑选想获取的代币及年化收益（APY)，并将自己持有的CAKE 存入到糖浆池中，随后可以获得对应的代币作为奖励。
For example, you can choose the syrup pool "Earn SD" in the picture below, then invest in CAKE, and then you can get SD tokens and 23.62% annualized income.
2) Farm farm
运作方式是先选定一个农场池，并将指定的两种货币一同投入农场池中，为该农场池提供流动性（LP)，进而赚取对应的年化收益的工具。最终会以平台代币CAKE 作为报酬，为了鼓励更多参与者为平台农场提供流动性，PancakeSwap 上的农场会定期更换农场交易对，增加投资丰富性。
For example, if you want to choose CAKE-BNB LP investment, you need to first invest in CAKE and BNB to obtain liquidity tokens (LP). After obtaining this LP token, you can put this LP token into the CAKE-BNB LP farm , you can then obtain the corresponding CAKE annualized income.
3)Lottery Lotto
可以利用CAKE 去购买彩券，并且选择自己喜好的号码组，就有机会中奖获利的投资方式。
Each ticket is approximately $5 worth of CAKE.
You can only buy up to 100 tickets at a time, and you can buy them multiple times. There is no maximum purchase fund or upper limit on the number of times.
There are a total of six numbers in each lotto draw.
It will be a random number arrangement from 0 to 9.
You can choose automatic or manual number selection by the system.
The bonuses will be divided into different levels according to the number of winning numbers. For example, if you win 1, 2, or all numbers, you will get different proportions of bonuses.
The prize redemption method is from left to right, which means that at least the number on the left is correct to have other chances of winning. If all the numbers on the right are correct but the first number is not correct, it is equivalent to being a loser.
简单来说，如下图可以发现PancakeSwap 的乐透与我们现实生活中的大乐透、威力彩几乎一模一样，只是将购买的媒介从台币换成了加密货币CAKE，在够买时可以选择电脑选号，或是手动选择自己喜好的号码，一样也不是只有全中才有奖励，只要在规则内对中特定号码即可获得些许比例的奖励。
4) IFO initial farm issuance
IFO stands for Initial Farm Offering. This tool first appeared on PancakeSwap to help new cryptocurrency projects raise funds on the PancakeSwap platform and provide better opportunities and exposure.
当新的项目在IFO 发布时，可以投入CAKE 进行代币的认购，部分IFO 项目会透过提供优惠的价格和特别的奖励去吸引投资。
There are two ways to participate, namely public sales and private sales. Public sales are based on the number and duration of CAKE locked up within a specified period. During the subscription preparation period, you can obtain the corresponding iCAKE tokens. When the investment period is open, As many iCAKEs as you obtain during the preparation period, you can invest the same amount of CAKEs at a 1:1 ratio to participate. For private sales, you need to meet the specific requirements of the project before you can participate.
How does Pancakeswap work?
Step 1: Wallet creation
Before figuring out how to use it, you must first apply for a Metamask wallet.
In addition to preparing the wallet, because Metamask’s initial settings for deposits and withdrawals are based on the Ethereum chain, if you want to start using the functions on Pancakeswap, you must import the network of an smart chain into the wallet settings. , please refer to the following information for details:
首先点击上方的「以太坊主网路」，然后会跳出许多测试网路，找到最下方的「自订RPC」。
Then fill in the information according to the icon on the right and click Save to complete the addition of Binance Smart Chain.
After setting up, the wallet will automatically switch to the "Xiaoan Smart Chain Network" and invite you to experience the Swap function. We will ignore it for now.
Step 2: Purchase and deposit Cake coins
Taking An An as an example, first go to An An’s website (exclusive registration link for Leisji), log in, click on the transaction above and select the standard version.
Search Cake in the search bar on the right and find the trading pair you want (that is, what currency to buy through, usually USDT), and set the price and quantity you want to buy on the same page.
After the transaction is successfully completed, click "Wallet" in the upper right corner and select "Spot Wallet".
Enter the spot account, click "Withdraw" listed above and search for the currency Cake Coin you want to withdraw.
After finding the currency you want to withdraw, select "Withdraw" in the function bar on the right.
Finally, copy Metamask's BSC chain wallet address into the address field (the system usually automatically detects the chain type), enter the amount you want to withdraw, and click "Withdraw" below to complete.
※Pancakeswap’s handling fee is settled in $BNB. If you want to use any of the above functions, you must deposit BNB into your wallet to use it as handling fee!
Step 3: Connect wallet with Pancakeswap
进入Pancakeswap 网站，点选右上角连结钱包，即可开始使用上面所有功能。
※因为Pancakeswap 的手续费是以$BNB作为结算，若想要使用上面的任何功能，务必将BNB 打入钱包以作为手续费使用！
What are the advantages and risks of Pancakeswap?
advantage
Users have 100% asset management rights and do not need to bear the risk of centralized exchanges running away.
Transactions are completely anonymous, users’ personal information is not afraid of leaking out, and more wallets can be created
Connect multiple wallets to facilitate asset management
Not subject to regulatory oversight, investment projects are more diverse and flexible
risk
If there are security issues in the exchange, the more users will distrust and withdraw funds, it will create liquidity risks.
There is no centralized exchange-assisted confirmation when transferring funds, and it is easy to transfer the wrong chain or address.
The more fake websites are rampant, if you connect your wallet to a fake exchange and authorize it, it will cause serious losses of assets.
CAKE’s future outlook
CAKE has always been the leading project on the An'an smart chain. PancakeSwap's overall platform has a large proportion of funds, transaction volume and market value, and the official has been constantly developing new functions and tools.
For example, there are now some NFT transactions on the platform. PancakeSwap will be upgraded from V2 to V3 in the near future. It will not only optimize the user experience, but also add some special features. According to the size of PancakeSwap, regardless of It’s trading volume, lock-up volume, and market value, all of which are investment targets with great potential.
There are also constant (destruction) and cycle (application within the platform) mechanisms of various token economies. Judging from the stable progress of PancakeSwap, we can expect that CAKE will continue to shine in the decentralized industry in the future.
