PancakeSwap is a new decentralized exchange, which is currently gaining momentum. Nowadays, it is even more popular than Uniswap and SushiSwap. But what’s the reason for such popularity?

Earn on PancakeSwap App

PancakeSwap is a decentralized exchange that runs on Binance Smart Chain. PancakeSwap is a great competitor to Uniswap and Ethereum. Its key benefits are an unbelievable transaction speed and lower fees than any other DeFi projects. Since its development, PancakeSwap has transformed into one of the most popular DeFi systems with about 4 million customers. As you can see, PancakeSwap has a huge potential! 

So, what are the main benefits of PancakeSwap for investors? You will find it out in this article. Although this decentralized exchange represents a Uniswap clone, they have many differences. In many ways, PancakeSwap is superior to its competitors.

How to get started with PancakeSwap?

PancakeSwap is an Automated Market Maker, which means that it provides liquidity to the exchange it operates in through automated trading. The main characteristics of this DEX are as follows: 

  • PancakeSwap facilitates cryptocurrency trading without a centralized exchange service. 
  • Users can swap between cryptocurrency assets by tapping into user-generated AMM liquidity pools. 
  • Anyone can create a new cryptocurrency token and add a liquidity pool for it, and thus open up a new market. 

Please note that you can only trade BEP-20 tokens on PancakeSwap. The reason for it is that it is based on BSC, not Ethereum. However, if you only hold ERC-20 tokens, don’t worry — you can use the Binance Bridge to wrap your assets for use on PancakeSwap. Swaps on PancakeSwap are easier, faster and more flexible compared to centralized exchanges (such as Coinbase or Binance).

PancakeSwap rewards users who stake its native BEP-20 token called CAKE with SYRUP tokens. This is the best solution for investors on a tight budget (those who can’t spend money on gas fees). 

Liquidity pools increase available liquidity in the DeFi ecosystem. Lots of providers are currently transitioning to the PancakeSwap. Since its development, PancakeSwap has managed to attract more than $1 billion in the total value locked (TVL). 

Is PancakeSwap better than Uniswap or SushiSwap?

What are the advantages of PancakeSwap over other major DEXs, such as Uniswap or SushiSwap? Each of them is governed by the community and provides the ability to farm liquidity. But at the same time, Uniswap doesn’t give staking rewards to the token owners. 

  • Uniswap is a protocol on Ethereum for swapping ERC20 tokens with its own governance. Uniswap relies on Ethereum and its smart contacts to achieve its objectives. 
  • SushiSwap is a fork of Uniswap that has evolved into a DeFi hub. It is ultimately governed by its community and allows users to swap tokens, earn rewards via yield farming, etc. SushiSwap has two native tokens- SUSHI and xSUSHI.
  • PancakeSwap represents a Uniswap clone built on BSC. Its basic function is to support trading in BEP-20 tokens and ensure the BSC←→ETH bridge. The platform has its own token called SYRUP. 

Comparison of profit-sharing cryptocurrencies

Users who stake CAKE in SYRUP pools receive CAKE tokens as reward. These tokens give them the right to transaction fees from the protocol — 1/4 of CAKE emissions. The charges are divided proportionately. PancakeSwap has much in common with SushiSwap, where token owners receive xSUSHI. 

In Uniswap, UNI performs only one function- governance. It doesn’t allow you to get rich. For this reason, lots of liquidity providers have given up on this DeFi protocol.

Farming LP Tokens work?

Farming LP Tokens is very similar to yield farming on SushiSwap. To start farming, you should choose a pair of tokens, connect a wallet and make a deposit.

Meanwhile, the price of depositing is lower, which is a big advantage for the clients. BSC is more cost-effective to use than Ethereum because it is one of the most centralized platforms.

This decentralized exchange boasts high speed of transactions and throughput. PancakeSwap is less expensive and faster to use than both Uniswap and Sushi. 

Gamification in UX

Uniswap, Sushiswap, PancakeSwap- all these platforms have cute and funny logos in spite of their serious functions. But PancakeSwap also conducts a daily lottery. To play it, users need to deposit CAKE tokens into the lottery and wait for the results. 

The more CAKE you deposit, the higher the probability of winning, and the larger the pot. The mechanics of this lottery is simple but sophisticated, which explains why it is so popular with the users. Moreover, the exchange has very cute graphics!

How to start using PancakeSwap?

To start with, you need to link your Trust Wallet to BSC. Follow the steps below before immersing into trading. So far, this DEX can connect to the following systems:

  • TrustWallet
  • Metamask
  • TokenPocket
  • MathWallet
  • Binance Chain Wallet
  • WalletConnect
  • SafePal Wallet

Start with connecting your Trust Wallet to PancakeSwap 

To connect your wallet to PancakeSwap, you will need a smartphone or a PC. Perform the following steps for web browsers:

  • Open a browser on your desktop and visit the official PancakeSwap website.
  • Click “Connect”.
  • Choose “Wallet Connect” from the list, and a QR code will appear.
  • Open the wallet app on your mobile phone. 
  • Click “Wallet Connect” in the settings.
  • Scan the QR code showing up on your desktop screen.
  • On your app, you will be prompted with “PancakeSwap wants to connect to your wallet”.
  • From here on press onto “Connect”. 

Apple update iOS users can no longer use Trust Wallet’s DApp Browser. However, you can still use WalletConnect Mobile Linking on your mobile device to access a DApp. 

MetaMask Wallet setup

The steps to set up a MetaMask wallet are outlined below.

  • Open

  • Press a “Connect” button in the top-right of the screen.

  • Choose “Wallet Connect” from the list of supported wallets. A QR code will appear in a pop-up window on the screen. 

  • Select the box next to the name of your wallet. 

  • Press the button “Next”.

  • Enable the system to view the addresses of your permitted accounts.

  • Tap the “Connect” button. 

How to swap on PancakeSwap?

Staking on PancakeSwap is relatively easy. In Pancake Swap, the SAFEMOON/BNB has the most liquidity. Complete the following steps:

  1. Open
  2. Select “Trade” from the dropdown menu.
  3. Click “Exchange” and switch the tool at the center of the computer screen to “Swap”.
  4. Choose the cryptocurrencies you want to swap from the drop-downs in each line.
  5. Click on “Swap”.
  6. Confirm this transaction in your Trust Wallet.

A guide to Binance Bridge

Changing from ERC-20 to BEP-20 is very easy. You can do it in a few simple steps: 

  1. Launch the Binance Bridge.
  2. Connect your crypto wallet. 
  3. Indicate the name of the token that you want to bridge.
  4. Don’t forget to confirm the transaction.

Once you’ve completed your transactions on PancakeSwap, convert your crypto back from BEP-20 to ERC-20. To do this, you should repeat the above-mentioned steps on Binance Bridge in reverse order.

Each transaction is charged a commission in ETH. Despite the fact that the initial costs may be high, you should think about future. In the long term, PancakeSwap allows you save a significant amount in trading commissions.

Binance Bridge has many different functions apart from wrapping assets. For example, it allows you to bridge ETH to BSC and start yield farming on PancakeSwap.

How to provide liquidity on PancakeSwap?

All users obtain rewards from liquidity provision, which makes PancakeSwap liquid for exchange. Joining a liquidity pool is very easy: 

  1. Press the button “Liquidity”.
  2. Choose “Add liquidity”.
  3. Indicate a pair of tokens you are providing liquidity for (after unlocking your wallet, of course). 
  4. Deposit the aforementioned currency pair by approving the transaction. 

Once you’ve made a deposit, you will obtain an LP token named FLIP. All owners of FLIP tokens will receive their share of rewards after each transaction. To qualify for these rewards, they must redeem their FLIP tokens. This action allows you to unlock the underlying assets and start using them.

Things to take into consideration

  • On PancakeSwap, liquidity is always provided in pairs. Therefore, users have to choose a pair of tokens.
  • You can provide liquidity in a pool that already exists or deploy a new one. The latter is more popular among the projects who want to add their own token to PancakeSwap. 

Yield Farming with PancakeSwap

Liquidity mining and yield farming are different concepts. Liquidity providers put pairs of assets in a pool for exchange operations, and the price of these assets increases over time. To begin yield farming, you must deposit one type of assets to receive other tokens.

  1. Click the “Farms” tab.
  2. Press the button “Liver farms” to see what’s going on there. 
  3. Choose the farms from the list of available farms.
  4. Tap “Details” on the selected farm to see how much CAKE you can earn from it. 
  5. Connect your wallet so PancakeSwap can automatically detect the available tokens.
  6. Start depositing in the farm. 

After confirming the transaction, you’ll have some CAKE tokens. To date, the farming yield is high throughout a few pairs. With farms like DUSK-BNB, you can earn well over 200% APY.

Getting started with Syrup Pool staking

As we said, CAKE holders can stake their tokens in the CAKE Pool and collect CAKE rewards. To receive BEP-20 tokens, you should stake your CAKE in SYRUP pools. 

Users benefit from obtaining a new token that may significantly increase in value over time, while PancakeSwap is gaining additional liquidity and a new stock exchange listing. Below we explain how to join Syrup Pool:

  1. Press on “Pools”.
  2. Choose the pool you want to join.
  3. Send CAKE tokens to the selected pool.

Analyze available pools to choose the most suitable option. After the purchase, the tokens will be automatically appointed to your CAKE DeFi account.

Problems and solutions

Sometimes errors can happen when you try to swap certain tokens. The majority of them have emerged after migration from V1 to V2 last spring. This modification provided for the new DeFi contract features, but it wasn’t perfect. Below you can find some of the most popular errors and their solutions.

  1. The most common error on PancakeSwap is Insufficient Output Amount. This problem usually occurs because your slippage tolerance is too low. To solve this problem, you need to increase it to at least 12%. Another possible cause of this error is trying to swap fake tokens.
  2. If you receive the notification “Price impact too high”, this means that your transaction will have a negative price impact. To fix this error, you need to switch PancakeSwap from V2 to V1. But if it’s not helpful, try to buy crypto using smaller amounts. Changing the price slippage to complete the transaction can also be the solution.
  3. Insufficient liquidity for this trade is another error that have appeared after the migration from V1 to V2. In order to fix it, you should input “12%” on the percentage field.
  4. When trying to make transactions with tokens, you may receive the notification “Cannot estimate gas”. That’s a very common error, especially when trying to swap tokens like Bonfire and Safemoon. This error tells you that the chosen exchange can’t estimate your transaction fees because you keyed in too many decimal points on the token value. To fix the problem, you need to change the slippage tolerance and raise it to 12%. After that, you also need to adjust the number of tokens.
  5. When you’re trying to connect PancakeSwap with a wallet, an error message “Unsupported chain ID” may pop up. This shows that the blockchain you selected doesn’t back the token you’re trying to swap. You can solve this problem by adding BNB to your wallet. After making a deposit, you just need to switch from Ethereum Mainnet to Binance Smart Chain (without using a browser). 
  6. If the error ”No provider was found” pops up, this this means PankcakeSwap has experienced a problem connecting with your Trust Wallet. This problem is easy to solve: just enable DApp on Trust Wallet. 

How to participate in PancakeSwap lottery?

Because of incredible market volatility, crypto trading looks more and more like gambling. Today, PancakeSwap provides all its users with an amazing opportunity to gain extra money — a special lottery! Don’t miss your chance. All you need to play is deposit CAKE tokens.

Tap “Lottery” and buy as many tickets as you can afford using CAKE tokens. Don’t be afraid to take a risk, as the more tickets you have, the higher your chances of hitting a “jackpot”. In order to win the main prize, you must have two or more matching numbers.

PancakeSwap Lottery sessions happen four times per day, which means four chances to win per day! It’s an incredible opportunity!


PancakeSwap is currently spearheading a new ICO model called the IFO, which enables CAKE-BNB liquidity providers to buy a new project’s tokens. Joining an IFO is very easy for CAKE-BNB liquidity providers — all you need is to deposit your LP tokens on the IFO page.

Users who want to participate in an IFO but don’t have CAKE-BNB LP tokens yet need to get them first:

  1. Buy BNB and CAKE tokens equal to the total amount you want to contribute: choose the total contribution amount, then buy 50% BNB and 50% CAKE. 
  2. Deposit those tokens in the CAKE-BNB liquidity pool to receive your LP tokens.
  3. Return to the IFO page.
  4. Deposit the LP tokens you received.

The project’s tokens will be provided after the IFO is finished.

Is investing in PancakeSwap safe?

Since its launch about 18 months ago, no complaint has been raised against PancakeSwap. The platform has been inspected by CertiK (one of the market leaders in blockchain security), and the results demonstrated that all the code is secure.

Is PancakeSwap legal? Certainly. However, not all assets traded there may be legal. Therefore, we recommend you to check cryptocurrency transaction status before making a puchase.

Uniswap vs PancakeSwap

Now you know everything about PancakeSwap and its possibilities. But is it better than SushiSwap, Uniswap and other similar exchanges? Let’s find out.

Although Uniswap and PancakeSwap have similar trading volumes, the latter is much faster and less expensive to use. But to use PancakeSwap, holders of ERC-20 tokens have to wrap them on the Binance Bridge to turn them into BEP-20 assets. 

Using the Binance Bridge is quite expensive. It is not fully decentralized, so BSC is not 100% pure DeFi. However, PancakeSwap is working on its problems and trying facilitate the access of users to the platform.