What is Cake coin ? Cake coin is essentially the token of the decentralized exchange PancakeSwap, which is seen as an emerging star in the Defi (decentralized finance) field. This is also one of the first billion dollar projects on BSC (binance smart chain).
1 – What is Cake coin?
Cake coin is essentially the cake token of the decentralized exchange PancakeSwap, in simple words Cake is a private currency of the exchange.
Cake token is generated every 25 CAKE / block. Every day, 30,000 blocks will be generated, equivalent to 750,000 CAKE are created.
When seeing the birth rate of CAKE too much, many people will immediately think about inflation. But okay, to overcome this inflation, every day PancakeSwap has a CAKE burning mechanism.
The amount of Cake generated will be distributed 60% to the participants of the farm and 40% to the Stake CAKE.
The parameters of CAKE token are as follows:
- Symbol: CAKE.
- Blockchain: binance smart chain.
- Token Standard: BEP20.
2 – What is PancakeSwap?
The essence of PancakeSwap is a decentralized exchange that allows the exchange of standard BEP20 tokens. Operates in the form of AMM (automated market maker: automated market creation system).
This means that users transact with each other through locking their tokens into a liquidity pool.
3 – Ingredients in PancakeSwap
3.1 – Exchange
Not like regular exchanges. On PancakeSwap you cannot trade by placing orders but have to lock your token into the liquidity pool.
3.2 – Yield farming
Pancake has 27 liquidity pools that allow you to send FLIP tokens to farm out CAKE. The reward of each pool depends on the number of depositors and the pool reward.
3.3 – Staking pools
This is a place that allows the promotion of new projects to the PancakeSwap community by distributing a portion of tokens to CAKE holders.
There are 2 components in staking pools as follows:
Core: The project was selected by the PancakeSwap team.
Community: the project was voted by the PancakeSwap community.
3.4 – Lottery
This is a blockhash based lottery aimed at avoiding fraud.
3.5 – Analytics
With Analytics you can view liquidity metrics, volume, and price of trading pairs.
3.6 – Voting
This is where the community votes and gives suggestions to help the project develop more.
There are 2 types of recommendations as follows:
Core: this is the PancakeSwap team proposal, if the community approves it then the proposal will be made.
Community: This is a community proposal. If a proposal gets a strong response, PancakeSwap will move it to the Core level.
3.7 – IFO
IFO stands for initial farm offering, this is a form of fundraising for the project with CAKE – BNB LP token. That means you use CAKE and BNB to add liquidity to CAKE – BNB LP token to buy tokens of the fundraising project. BNB in LP (Liquidity pool) will be given to the project, while CAKE will be burned.