In this article, we will go over Pancake’s decentralized features: Yield Farming and Syrup Staking Pools! This should shed some light before going into them and how they function so you can get the best performance possible!
PancakeSwap Yield Farms #
Don’t mix up yield farming and liquidity provision on PancakeSwap!
When your original assets are used in exchange transactions, your original asset amounts increase. Yield farming involves depositing one set of tokens to produce another set of tokens.
PancakeSwap produces farms when you select the Farms tab. You’ll want to switch the toggle to Live farms so you can see what’s going on right now. There should be a long list of options populating the page, including many farms with BUSD and BNB base pairs.
Click on the Details tab to see how much each farm earns in CAKE. A number of PancakeSwap farms earn well over 200% APY, such as DUSK-BNB.
PancakeSwap will prompt you to unlock your wallet after clicking Details to detect the currencies inside and allow them to be deposited into the farm. After you have deposited, your CAKE earnings will appear on the page.
The initial farm offering (IFO) #
The IFO, or Initial Farm Offering, is a new ICO model that PancakeSwap is spearheading.
IFOs allow CAKE-BNB liquidity providers to buy a new project’s tokens. You can join one if you are already a CAKE-BNB liquidity provider — just deposit your LP tokens on the IFO page.
You’ll need CAKE-BNB LP tokens to participate in an IFO if you don’t already have them. Decide your total contribution amount, then buy 50% BNB tokens and 50% CAKE tokens equal to that amount. In order to receive your LP tokens, deposit those tokens into the CAKE-BNB liquidity pool.
As soon as the IFO is finished, you’ll receive the project’s tokens in exchange for your LP tokens.
PancakeSwap Syrup Pools #
Now that you understand how PancakeSwap and yield farming work, here comes yet another pool that is different from all the others.
In PancakeSwap Syrup Pools, you stake your CAKE tokens in exchange for a Binance Smart Chain project’s new token. It works by depositing your CAKE token into a pool to receive the project’s BEP-20 token in return.
In exchange for the shiny new token that might rise in value, the project gets liquidity bootstrapping and an immediate listing on PancakeSwap.
You can enter a Syrup Pool by clicking on Pools, finding the one that appeals to you (do your own research! ), then depositing your CAKE and receiving new tokens.
PancakeSwap offers a wide variety of Community and Core Farms/Syrup Pools to be a part of. Those that are labeled “Core” are published directly from the team, and those labeled “Community” come from the the governance of the community.
Since PancakeSwap is the largest decentralized exchange on the Binance Smart-Chain, it will continue to keep adding new pools and farms for its community in the future.
It is one of the easiest and most trusted DEX to use!
PancakeSwap. (2021, December 20). DappRadar. https://dappradar.com/binance-smart-chain/defi/pancakeswap
PancakeSwap Intro – PancakeSwap. (2021a, December 20). Pancakeswap.Finance. https://docs.pancakeswap.finance/
Shrimpy. (2021, December 20). What Is PancakeSwap? YouTube. https://www.youtube.com/watch?v=UUZl1I_4Gqo&feature=youtu.be