There are currently 69 different liquidity pools where you can stake on PancakeSwap.

What is liquidity pool pancakeswap. When you add your token to a Liquidity Pool you will receive Liquidity Pool LP tokens and share in the fees. In this tutorial Im going to show how to add liquidity to any of its many pools farm cake and stake cake. In addition it may benefit you to understand more about impermanent loss before adding liquidity to a pool.

Pools will have lower returns because 1 you get less percentage of the transaction fees and 2 the total value in the syrup pool is much larger than say a. Then youll have no issue grasping PancakeSwap they are quite similar in their core design. In the AMM model traders trade digital assets using permissionless liquidity pools.

Comparison of all vaults normalised against PancakeSwap in terms of Cake and Total value. In some platform LP can earn multiple tokens that they can then be added to the Liquidity Pool to get more reward. What is Liquidity Pool.

You only get your share of the pool. Lets get started with learning how to provide liquidity on PancakeSwap. The Liquidity Pool is the smart contract that contains funds.

This essentially means that there are no order books bidask system or limitmarket orders. It implements an automated market maker AMM model to provide liquidity on peer-to-peer trades within the protocol. It works on the automated market maker AMM model instead of the traditional market model in which there is a seller and a buyer.

This use of algorithms to run the pools. The liquidity provided to the exchange comes from Liquidity Providers LPs who stake their tokens in Pools. PancakeSwap is one of the famous DeFi based Protocol which aims to provide Automated Market Making AMM by being a 1 liquidity provider.