About PancakeSwap (CAKE)
CAKE is the native token of PancakeSwap, a decentralized exchange (DEX) built on the BNB Chain. Launched in September 2020, PancakeSwap allows users to swap BEP-20 tokens without relying on a centralized intermediary. The platform supports a peer-to-peer automated market maker (AMM) model where users contribute liquidity to earn rewards.
PancakeSwap has expanded its product suite beyond basic token swaps. It now offers yield farming, staking through Syrup Pools, Ethereum liquid staking (wBETH), and a variety of tools like the v3 Position Manager and Prediction Markets. Additional features include an NFT marketplace, a lottery system, a game called Pancake Protectors, and Initial Farm Offering (IFO) token launches. PancakeSwap also provides a cross-chain bridge that enables CAKE transfers between BNB Chain, Ethereum, and Aptos.
The CAKE token functions as the core utility and reward mechanism within the PancakeSwap ecosystem. It is used to incentivize liquidity providers, distributed through farming and staking activities. CAKE is a BEP-20 token, compatible with other tokens on the BNB Chain. Users can stake CAKE in Syrup Pools or participate in yield farming to earn returns, with no mandatory lock-up period.
In April 2023, PancakeSwap transitioned to a deflationary model known as Ultrasound CAKE, following the approval of CAKE Tokenomics v2.5. This model introduced a real yield mechanism with reduced emissions and weekly token burns. Over 102% of newly minted CAKE is burned each week to manage supply and extend the token’s long-term sustainability.
The platform’s v3 upgrade introduced capital concentration for liquidity providers, significantly improving capital efficiency—up to 4000x compared to v2 for certain trading pairs. The Position Manager automates compounding, fee collection, and rebalancing, helping mitigate impermanent loss while optimizing returns based on users’ risk preferences.
PancakeSwap is maintained by an anonymous development team referred to as the “Chefs,” and the project is open-source and independently audited by firms such as PeckShield and SlowMist.
PancakeSwap (CAKE) has a maximum supply of 450 million tokens, with approximately 342.95 million tokens currently in circulation.
CAKE is listed on Binance for trade and purchase. The live price of CAKE is updated and available in real time on Binance.
