What is CAKE coin? Learn what CAKE coin is in one minute

PancakeSwap's native token, CAKE, serves as a reward for liquidity providers, a governance tool, and a utility asset within the decentralized finance ecosystem.

Oct 23, 2024 at 02:12 pm

What is CAKE Coin?

Definition:
- CAKE is the native token of PancakeSwap, a decentralized exchange (DEX) operating on the Binance Smart Chain (BSC).
Purpose:
- Staking: CAKE is used as a reward for liquidity providers on PancakeSwap. Stakers can earn a percentage of the trading fees generated on the platform.
- Governance: CAKE holders can participate in PancakeSwap's governance through voting proposals that affect the platform's development.
- Utility: CAKE can be used to purchase NFTs on PancakeSwap's marketplace and pay for farming fees on the platform.
Key Features:
- Based on BSC: PancakeSwap is built on BSC, providing fast transaction speeds and low gas fees.
- Automated Market Making (AMM): PancakeSwap uses an AMM model, where users trade directly with liquidity pools instead of order books.
- Syrup Pools: CAKE can be staked in Syrup Pools to earn additional CAKE or other cryptocurrencies.
- Transaction Fees: A 0.2% transaction fee is charged on all trades on PancakeSwap, with 0.17% distributed to CAKE stakers.
Market Performance:
- Launched in September 2020
- Current market capitalization: Approximately $440 million (as of August 2023)
- All-time high: $44.54 (April 30, 2021)
Conclusion:
- CAKE coin is the backbone of PancakeSwap, a popular DEX built on BSC. Through staking, governance, and utility, CAKE provides value to users and contributes to the growth of the decentralized finance ecosystem.

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