PancakeSwap

PancakeSwap is a Decentralized Exchange (DEX), utilizing the automated market maker (AMM) protocol for defining digital asset prices and providing liquidity, built on Binance Smart Chain (BSC).

Pancakeswap is a fork of Sushiswap, a DEX built on Ethereum that also utilizes the AMM system.

Pancakeswap is similar to Uniswap exchange in that both are DEXs.

However, PancakeSwap focuses on BEP20 tokens that are developed by Binance, whereas Uniswap focuses on tokens following the ERC20 token standard.

Related Terms

Token

A Token is a digital asset that operates on a parent blockchain or on another digital asset’s blockchain because it doesn’t have a blockchain of its own. The term “token” also tends to describe almost all other cryptocurrencies other than Bitcoin and Ethereum, the two largest cryptocurrencies in existence today. Tokens have multiple purposes and use cases.

AMM (Automated Market Maker)

A protocol that runs on decentralized exchanges (DEX), that takes away the order book that exists on traditional exchanges and replaces it with liquidity pools, a shared pot of tokens locked in a smart contract.

Binance Coin (BNB)

The cryptocurrency created by Binance exchange, the world’s largest centralized cryptocurrency exchange (CEX) by trading volume.. BNB is a utility token that can be traded like any other cryptocurrency, but is also used to pay for goods and services, participate in token sales, buy virtual gifts, reduce trading fees, make loans and transfers and make credit card payments.

Uniswap

Uniswap is currently the largest decentralized exchange (DEX) by trading volume operating on the Ethereum blockchain, which allows anyone to swap ERC20 tokens. Uniswap was the pioneer in using the automated market maker model, where users supply Ethereum tokens to liquidity pools, and algorithms determine how to price assets.

Binance

Binance is the largest cryptocurrency exchange by daily trading volume in the world. It experienced US $34 trillion in trading volume in 2021. The Binance trading platform is known for low trading fees, a large number of supported cryptocurrencies, and a large number of order types, including Limit orders, market orders, stop-limit orders, trailing stop orders, post-only orders, peer-to-peer trading, margin trading, and one-cancels-the-other orders