PancakeSwap is a AMM and DEX that originally ran only on BNB Chain and has expanded to Ethereum and Aptos. It is the first DEX on BNB Chain allowing users to freely trade and add liquidity for any BEP-20 tokens, which has made it one of the most widely used and easily recognizable exchanges in the market. The DEX was launched in 2020 by an anonymous team called the Kitchen Team.
As an AMM, PancakeSwap facilitates swaps without a central order book, but rather with the implementation of liquidity pools. People can provide liquidity to any tokens in PancakeSwap and earn rewards doing so. It also has other features that are common in other DEXes, such as token sales, governance, staking, and yield farming. Besides, PancakeSwap offers Prediction and Lottery games. With the former, users predict the price of the BNBUSD or CAKEUSD pairs and earn CAKE tokens accordingly, while in the latter, users choose their own lottery ticket numbers and if theirs match the winning number combinations, they win CAKE.
CAKE is the token that makes the PancakeSwap protocol go round. It has 750 million tokens in total supply. At the time of writing, 147.5 million CAKE tokens are being circulated.
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