DeFi with a sweet twist
PancakeSwap (CAKE) is the governance and utility token of PancakeSwap, one of the most popular decentralized exchanges (DEXs) in the crypto world. Originally built on the BNB Chain, PancakeSwap allows users to trade tokens, provide liquidity, and farm rewards without intermediaries. Known for its playful branding, PancakeSwap also offers a robust suite of DeFi products. Now, you can buy and sell CAKE directly on Bitso.
What is PancakeSwap (CAKE)?
PancakeSwap is a decentralized exchange that enables token trading through an automated market maker (AMM) model, eliminating the need for order books. Users can swap tokens, stake liquidity, and earn rewards in CAKE. Beyond trading, PancakeSwap offers features like yield farming, lotteries, and NFT marketplaces, making it a versatile platform in the DeFi space.
The CAKE token powers this ecosystem, serving as the main reward mechanism and governance asset.
What makes CAKE unique?
CAKE stands out because of its community-driven approach and low trading fees, which attract millions of users. The protocol features a deflationary model where tokens are regularly burned to reduce supply and support long-term value. Its fun branding combines with serious DeFi functionality, making PancakeSwap both engaging and effective.
A closer look at the founders
PancakeSwap was created in September 2020 by anonymous developers under the pseudonym Chef Hops and a team inspired by Uniswap but focused on the BNB Chain. Despite the anonymity, the project quickly gained credibility due to its strong community, open-source code, and continuous innovation in the DeFi sector.
What is the CAKE token for?
CAKE has several core utilities within PancakeSwap:
- Staking & Farming: Users stake CAKE in Syrup Pools or liquidity farms to earn more CAKE and partner tokens.
- Governance: Holders can vote on proposals affecting the protocol’s future, including fee structures and new features.
- Rewards: CAKE serves as the incentive for liquidity providers and participants in various PancakeSwap features.
Real-world example
Ana is an active DeFi user who wants to earn passive income. She stakes her CAKE in a Syrup Pool on PancakeSwap and earns additional tokens over time. While she trades other assets, CAKE remains her primary tool to participate in the platform’s growth and governance.
How to buy CAKE on Bitso
- Log in or sign up for your Bitso account.
- Use the conversion feature to swap your local currency (MXN, ARS, BRL, COP, or USD) for CAKE.
- Track its market performance directly from the app.
- Enter the amount, review the details, and confirm your transaction.
Note: CAKE is only available through conversions on Bitso. It is not supported on Bitso Alpha, and deposits or withdrawals from external wallets are disabled. However, you can send and receive CAKE between Bitso users via Bitso Transfer.
Disclaimer
PancakeSwap (CAKE) is the native governance and utility token of the PancakeSwap decentralized exchange. It allows users to stake, earn rewards, and participate in governance decisions. While PancakeSwap offers attractive DeFi opportunities, CAKE’s price is volatile and subject to market risks. This article is for informational purposes only and does not constitute financial advice. Bitso encourages users to conduct their own research (DYOR) before buying, selling, or holding any digital asset.
