Launched on September 20 2020 PancakeSwap is a DEX on the BSC using permissionless liquidity pools that are automated and run completely by algorithms.

What is liquidity pool pancakeswap. You will need the following. This essentially means that there are no order books bidask system or limitmarket orders. PancakeSwap Liquidity Pools.

PancakeSwap is a decentralized exchange for swapping BEP-20 tokens. PancakeSwap is one of the famous DeFi based Protocol which aims to provide Automated Market Making AMM by being a 1 liquidity provider. Instead users trading on the platform automatically draw liquidity from one or more liquidity pools which then rebalance after the trade is complete.

PancakeSwap is a decentralized exchange DEX platform that facilitates the trading of BEP-20 tokens. These tokens appreciate as the pools overall value rises. In this tutorial Im going to show how to add liquidity to any of its many pools farm cake and stake cake.

It works on the automated market maker AMM model instead of the traditional market model in which there is a seller and a buyer. For example if the transaction fee is 03 farms get 025 while pools get 005. PancakeSwap uses an automated market maker AMM model.

It implements an automated market maker AMM model to provide liquidity on peer-to-peer trades within the protocol. PancakeSwap is for swapping BEP-20 tokens but you can use bridge sections to provide liquidity for ERC-20 and TRC-20 tokens as well. Through this model PancakeSwap matches buy and sell orders from different platform users directly in a liquidity pool.

When you add your token to a Liquidity Pool you will receive Liquidity Pool LP tokens and share in the fees. In addition it may benefit you to understand more about impermanent loss before adding liquidity to a pool. These permissionless liquidity pools allow people to earn without trading their assets directly.