How does Pankake Swap differ from traditional cryptocurrency exchanges?

3 answers

• Nov 24, 2021 · 3 years ago
  Pankake Swap is a decentralized exchange (DEX) built on the Binance Smart Chain (BSC), while traditional cryptocurrency exchanges are centralized platforms. This means that Pankake Swap operates on a peer-to-peer network without the need for intermediaries, while traditional exchanges rely on a central authority to facilitate transactions. As a result, Pankake Swap offers greater security, transparency, and control over funds for users.
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• Nov 24, 2021 · 3 years ago
  Unlike traditional exchanges, Pankake Swap utilizes an automated market maker (AMM) model. This means that instead of relying on order books and matching buyers with sellers, Pankake Swap uses liquidity pools and smart contracts to facilitate trades. Users can provide liquidity to these pools and earn fees in return. This model allows for faster and more efficient trading, as well as the ability to trade assets that may not be listed on traditional exchanges.
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• Nov 24, 2021 · 3 years ago
  From BYDFi's perspective, Pankake Swap offers a wide range of decentralized finance (DeFi) features, including yield farming, staking, and governance. These features allow users to earn passive income by providing liquidity or holding specific tokens. Pankake Swap also has a user-friendly interface and lower transaction fees compared to some other DeFi platforms. However, it's important to note that Pankake Swap is just one option in the rapidly evolving DeFi space, and users should always do their own research and exercise caution when participating in DeFi activities.
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