on the crypto
Here are three reasons why Cake could be a revolutionary investment.
1. Lower commissions
It's impossible to talk about PancakeSwap without mentioning its main rival and biggest competitor, Uniswap, which is based on the Ethereum blockchain.
Uniswap, although older and more consolidated, is also affected by the recent stagnation of the Ethereum network. The fees on the Ethereum blockchain are increasing every day, and with these growing gas fees, Ethereum 2.0 can sometimes seem like a distant reality.
PancakeSwap does not suffer from these problems. Its fees are much more manageable than 0,2% for users using the liquidity in their pools. Also, these commissions are not paid in Ether. This allows for more transactions and higher profit margins for traders and investors. These are all great things for a token's price action.
Competitive transaction fees are among the main drivers of this network's popularity and are a key explanation of how PancakeSwap has attracted such a large community of users. A quick glance at social media will show how passionate many investors are for this project.
2. Options of staking
Lo staking, or the process of placing your own tokens to help validate transactions on a blockchain or provide liquidity to decentralized exchanges, is one of the main passive income opportunities for investors. cryptocurrency investors they have. Through it staking, investors can earn additional tokens on blockchain using a proof-of-stake or liquidity pooled validation model that decentralized exchanges use to facilitate trading.
Investors can be light-headed when looking at the annual percentage returns (APY) of cryptocurrency investments across various platforms. Let's take a look at what's possible when you tip the cake into a syrup pool on PancakeSwap.
Currently, there are 16 tokens available for it staking in the network pools, with the highest rated pool, Auto CAKE, which returns an APY of 72,70%. There are pools with even greater rewards available.
Staking Cake on PancakeSwap offers many advantages over traditional farming. Mostly, all the options of staking of the platform provide an extremely high return and are not traditional liquidity pools. That said, when engaging in productive farming, there are a number of specific risks to be aware of. Investors are exposed to what is called “temporary loss,” whereby if the price of an asset goes up or down, their profits may be less than they would have been if those assets were simply held in a cold portfolio. The staking it does not involve this form of risk.
When comparing UNI to Cake, it's easy to see which one wins. Since UNI cannot be put in staking within the Uniswap platform, it is simply used as a governance token. Cake simply has more utility and offers owners more options to generate passive income.
3. Greater liquidity
Probably the best thing about Binance's smart chain is its liquidity. PancakeSwap boasts the largest number of daily users of any dApp and has the fourth largest market volume. It has amazing wallet integration and supports popular wallets like WalletConnect, MathWallet, TokenPocket, TrustWallet, and even MetaMask.
Cake has extremely high daily volume and this is great news for an investor looking for a token to stake. It's easy to get in and out of Cake.
