How to use PancakeSwap to stake FAN?
The most popular decentralized application on the BSC network, PancakeSwap, is well known for both its token launches and its wide range of features. Even for those who are new to the Defi scene, trading decentralized is incredibly accessible thanks to the DEX.
What is PancakeSwap?
BEP-20 tokens can be traded on PancakeSwap, a decentralized exchange running on the Binance Smart Chain (BSC). While Uniswap has the highest average trading volume of these DEXs on the Binance Smart Chain, there are DEXs with significantly higher average trading volumes on Ethereum.
The native tokens on the Binance Smart Chain are represented by BEP-20. Known as the BSC Evolution Proposal (BEP), take note that a Binance Bridge can be used to convert ERC-20 tokens to BEP-20 tokens. You can wrap your tokens into the BEP-20 standard using any of the bridges listed here even if you don’t have a Binance account.
PancakeSwap was introduced in September 2020, and security firms like Certik and SlowMist regularly audit and validate the platform. The creators’ identities are unknown. The well-known Ethereum DEX, Uniswap, was forked to create PancakeSwap.
An automated market maker (AMM) model is used by PancakeSwap. Using the protocol’s liquidity pools, which are created through smart contracts, trades are carried out automatically and safely. Users of PancakeSwap use smart contracts to lock their tokens in a liquidity pool rather than dealing with an order list or looking for someone to swap tokens with. With this, you can trade as many tokens as you’d like, and users can put their coins in a pool to become liquidity providers (LPs) and share in the trading fees and many other rewards.
The native token of PancakeSwap is known as CAKE, and it primarily serves as a governance token but can also be used for staking and other Defi-specific operations.
The primary attributes of PancakeSwap (which are highlighted in their top menu) are:
Trade entails trading, placing limit orders, and introducing liquidity.
Earn: Farming yield
Win: The Lottery
Trading on PancakeSwap
You must first link your wallet to PancakeSwap in order to use all these features. Some of the most popular wallets include Binance Chain, TrustWallet, and MetaMask. In order to use PancakeSwap, make sure your wallet is compatible.
Like other AMMs, the trading feature enables cryptocurrency trading on the BNB Smart Chain. The three options that all AMM currently have at their disposal—trading, liquidity pools, and limit orders—form the basis of PancakeSwap.
On PancakeSwap, trading is simple and accessible by clicking “Trade” and choosing the token pair you want to swap.
Use the “Limit Order” feature to place orders to trade at a predetermined price rather than the current market price if you’d like more control over your trade. The default transaction speed (standard, fast, or instant), as well as the slippage tolerance, can be changed for normal trades and limit orders by traders.
If a trader only wants to trade direct pairs, they can also disable multi hops for their trades. You must be familiar with how to add liquidity to the protocol if you have used AMMs in the past. The option to choose the two coins to deposit in a liquidity pool can be found under Trade > Liquidity. However, before using this feature on any DEX, make sure you comprehend the impermanent loss.
Once you successfully deposit liquidity on the protocol, you will receive LP tokens to signify your portion of the liquidity pool.
How to Stake FAN Token using PancakeSwap | Staking Cryptocurrency | Earn Passive Income
Every token currently available on the BSC can be traded using the trade feature on the PancakeSwap, including the FAN token.
The FAN token serves as the native token for the popular cryptocurrency sports platform Fanspel, which also allows traders and investors to participate in daily fantasy sports competitions and earn rewards and passive income in cryptocurrency.
The PancakeSwap platform’s availability of the FAN token makes buying, selling, and trading extremely simple. It is fairly simple to buy and sell the FAN token once everything is set up and your MetaMask is linked to PancakeSwap.
Once everything is connected, you can simply visit PancakeSwap’s swapping page, choose the token you want to exchange your BNB for as a FAN token, click on confirm, and your FAN tokens will be purchased.
You can now transfer these tokens to the Fanspel platform to play fantasy sports or keep them and trade them on different exchanges because they are now stored on the wallet you connected to PancakeSwap.
Other passive income opportunities are available through Fanspel, such as staking, which offers up to a whopping 18% APR and enables you to receive free tokens while staking your own FAN tokens. People can choose from a variety of stake plans, ranging from fixed to flexible, thanks to this feature.