A brief summary about PancakeSwap (CAKE), and what makes it unique.
What is PancakeSwap?
PancakeSwap is a Binance chain based decentralized exchange (DEX) which automates the process of token exchange and provides liquidity. It is a decentralized finance application (DeFi). Users provide their funds to the PancakeSwap exchange in order to obtain Liquidity Provider (LP) tokens in an automated market maker model (AMM).These funds are collected in a liquidity pool which is used for trading. The native LP tokens of the PancakeSwap exchange are called FLIP. FLIP tokens can be used to earn a cut of trading fees as well as reclaiming funds from the liquidity pool. FLIP tokens can also be exchanged on the PancakeSwap farm for CAKE tokens.
Why buy CAKE?
CAKE is a BEP-20 token which is farmed by depositing FLIP tokens on the PancakeSwap exchange. CAKE has several use cases. CAKE tokens are used in staking, earning rewards, funding projects on the platform, obtaining tokens of other projects, etc. CAKE can also be used to participate in 6 hour lottery sessions held on the platform. NFTs on the platform are exchanged for CAKE tokens. CAKE incentivizes users to participate in development and funding activities and provide liquidity to the PancakeSwap exchange.
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