Members
Stats
  • Total Posts: 43151
  • Total Topics: 16308
  • Online Today: 6172
  • Online Ever: 51419
  • (01. January 2010., 10:27:49)









Author Topic: Automated Market Maker - The Mechanism Behind Pancakeswap  (Read 1288 times)

0 Members and 1 Guest are viewing this topic.

alicejenifferze

  • SCF Member
  • **
  • Posts: 64
  • KARMA: 2
  • Gender: Female
PancakeSwap is one of the famous DeFi based Protocol which aims to provide Automated Market Making (AMM) by being a #1 liquidity provider.

An Automated Market Maker is a decentralized exchange protocol that doesn't need an order book but relies on the mathematical formula to set the price for the assets. The price of the assets is fixed according to the pricing algorithms. This pricing formula can vary according to the DEX protocols.As PancakeSwap works on the AMM model, which means the users can trade their digital assets on the platform at any time even if their order book isn't matched with anyone else.

Instead, the trading occurs against liquidity pools.

These liquidity pools are filled with user's funds. The users deposit those funds into the pools just to receive a liquidity provider token or LP Token in return. These LP tokens can be used to reclaim shares and trading fees.So, in short, anyone can trade BEP-20 tokens or add liquidity to
PancakeSwap and earn LP tokens as rewards.

These LP tokens are in several ways. For Example: if you add BUSD and BNB to the pool, you will receive BUSD-BNB LP tokens as rewards in return and For BETH and ETH deposits, you will get BETH-ETH LP tokens in return.
The Poularity of Pancakeswap inspires many out there to kick start their own DeFi platform. With Pancakeswap Clone Script, One Can Start their own platform instantly and easily.

Samker's Computer Forum - SCforum.info


 

With Quick-Reply you can write a post when viewing a topic without loading a new page. You can still use bulletin board code and smileys as you would in a normal post.

Name: Email:
Verification:
Type the letters shown in the picture
Listen to the letters / Request another image
Type the letters shown in the picture:
Second Anti-Bot trap, type or simply copy-paste below (only the red letters):www.scforum.info:

Enter your email address to receive daily email with 'SCforum.info - Samker's Computer Forum' newest content:

Terms of Use | Privacy Policy | Advertising