A decentralized exchange (DEX), PancakeSwap runs on the Binance Smart Chain (BSC) blockchain. It was introduced in 2020 and quickly rose to become one of the DeFi ecosystem’s most well-liked DEXs. Users can earn rewards through yield farming on PancakeSwap while also trading, providing liquidity, and providing services. Thanks to the BSC’s robust and affordable infrastructure, it has a distinctive feature of low fees and quick transaction times. PancakeSwap has its own native token, CAKE, which can be earned by participating in yield farming or used for administrative purposes. This manual will explain how to use PancakeSwap in its simplest terms if you’re a new user.
Step 1: Connect your Wallet
Requesting to connect your BSC-compatible wallow is a requirement for using PancakeSwap. There are currently a number of wallets that support BSC, including MetaMenquire, Trust Walallow, and Binance Chain Walpermit. As soon as one of these wallets is operational, link it to PancakeSwap by selecting the “Connect” option in the website’s top right corner.
Step 2: Add Liquidity to a Pool
Trades are carried out against a liquidity pool rather than a traditional order reserve because PancakeSwap employs an automated market maker (AMM) model. On the PancakeSwap homepage, click “Trade” at the top and then choose “Liquidity” to add liquidity to a pool. Select the two tokens you want to add to the pool from the present, and then enter the desired contribution amount. The interface automatically determines how much of each token you need to supply. When you are satisfied with the figures, click “Supply” to complete the transaction and verify it in your wallow.
Step 3: Switch the Tokens.
On the PancakeSwap homepage, select “Trade” from the menu, then “Exchange” to swap one token for another. Select the tokens you want to buy and sell, then enter the trade amount. The interface automatically determines the amount of the additional token you will receive. When everything about the trade is to your satisfaction, click “Swap” to confirm the deal in your wall permit.
Step 4: Farm and Earn Rewards
As a result, PancakeSwap provides a yield farming feature where users can stake their liquidity provider (LP) tokens in exchange for rewards in the form of CAKE, the platform’s native token. Go to the website’s “Farms” section, choose the LP token you want to stake, and you can start to yield farming there. Once you have staked your tokens, you can receive rewards immediately. Additionally, you have the option to always unstake your tokens.
Before withdrawing any rewards you acquired through yield farming or liquidity provision, you must first make a claim. Find the pool where you earned rewards by going to the website’s “Pools” section and looking there. The transaction will be confirmed in your wallet after you click “Harvest.”. When your rewards have been claimed, go to the “Pools” section and select “Remove” to take your money out. Enter the desired withdrawal amount, then confirm the transaction in your wallet.
Let’s sum up by saying that PancakeSwap is a well-known decentralized exchange that utilizes the Binance Smart Chain. Many DeFi users consider it to be the best option due to its affordable fees, quick transaction times, and user-friendly interface. You can easily use PancakeSwap’s trading, liquidity provision, and yield farming features by following the instructions provided in this manual. Before investing your money, do your own research and understand the risks as with any DeFi platform.
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