At present, DeFi has grown rapidly and is an integral part of the crypto space. In DeFi, an extremely important piece of the puzzle is the DEX, which acts as the “heart” of any DeFi ecosystem. If you want to join DeFi and make money from it, mastery of DEXs is a must. Therefore, in this article, GTA Ventures will show you how to use PancakeSwap and its features in detail.
What is PancakeSwap?
Before entering the detailed instructions on how to use, we must know PancakeSwap what is it before?
PancakeSwap is an application of the Automated Market Making Model (AMM). That is to say, you can trade digital assets on the platform without an order book and execute orders with others. Instead, you will be dealing with a Liquidity Pools.
It has the basic feature of any DEX that must have is swapping (swap) 2 different tokens, along with extensive features like creating liquidity (liquidity), staking, farming… and a some other special features like Lottery, Prediction, IFO…
At the time of writing, PancakeSwap is in the top 3 of the DEXs with the largest 24-hour trading volume with more than 713 different swap pairs (according to Coinmarketcap). With being a top 1 DEX of the BSC ecosystem, this is not surprising.
Currently there are 2 versions PancakeSwap to be PancakeSwap V2 and PancakeSwap V1, Inside PancakeSwap V2 is an updated, upgraded version of PancakeSwap V1. You should use PancakeSwap V2 because V2 is updated with new features as well as improved security, fees and transaction speed. Therefore, in this article, I will also show you how to use it PancakeSwap V2.
What to prepare to use PancakeSwap
To use PancakeSwap you need to have your own wallet aka non-custodial wallet. With this wallet you will own and preserve it yourself private-keys of wallet. To understand more about this wallet type, you can refer to the article: Custodial vs non-Custodial wallet comparison. Suggest some good wallets you can choose from such as: MetaMask, TrustWallet, Coin98, all 3 of these wallets have user manuals, if you want to learn more details about any wallet, just click on the wallet name. Please.
After I have created a wallet non-custodial you need to configure the Binance Smart Chain network for the wallet. Posts Instructions to connect Metamask wallet with Binance Smart Chain. Note, you have to transfer some BNB to your wallet as a fee when making transactions on PancakeSwap. Around 0.1 BNB is comfortable enough for you to make a fee.
Yup! Once you have configured the Binance Smart Chain network for your wallet, you are ready to use PancakeSwap! Let’s go to the next step together!
Connect wallet with PancakeSwap
The first step to using PancakeSwap is to connect your wallet to PancakeSwap.
You access PancakeSwap via the link: https://pancakeswap.finance/ via Chrome or FireFox browser.
The image above is what PancakeSwap looks like when you visit:
- Menu features on PancakeSwap
- You can change the look of PancakeSwap to light or dark background according to your preference. The sun icon is a light background, the moon icon is a dark background.
- PancakeSwap CAKE token price at the moment.
- PancakeSwap’s communication channels. There are Telegram and Twitter channels.
- Connect PancakeSwap to your wallet
With the above comment, surely you already know where to connect the wallet? Exactly, it’s click Connect, equivalent to item number 5 above Image 1.1.
After clicking on Connect You will see an interface to select the wallet you want to connect to PancakeSwap, which wallet you want to connect to, then click on the name of that wallet. In this article I will use MetaMask wallet, so I choose MetaMask (Figure 1.2).
A window will appear asking if you want to connect PancakeSwap with MetaMask, this step you click on Next and choose Connection Please (Figure 1.3).
When you see your wallet address displayed on the interface of PancakeSwap as Figure 1.4 You have successfully connected!
After successfully connecting the wallet with PancakeSwap, you can use the features on PancakeSwap.
Instructions for using PancakeSwap
Instructions for swapping on PancakeSwap
To swap on PancakeSwap, at the homepage interface you need to click on Trade and choose Exchange (Figure 2.1).
The interface of the swap feature page will be like Figure 2.2:
- Tokens/coins that you want to swap. In the picture above, I use BNB.
- The number of tokens/coins that you use to swap.
- Tokens/coins that you want to receive after swap.
- The amount of tokens/coins you get after swap.
- The conversion rate between the token you want to swap and the token you get. As shown in Figure 2.2, 0.0447905 BNB will be exchanged for 1 CAKE.
- The slippage rate that you accept. In the picture above this ratio is 1%.
- Click to proceed with the Swap
- The least amount of CAKE you get after swap.
- The difference between the market price and the estimated price.
- Fees you pay to the Liquidity Provider who provide liquidity to the swap pool.
After entering the number of coins you want to use to swap, click on Swap. Next step (Figure 2.3) check transaction details 1 more time and select Confirm Swap.
Confirm swap on wallet (Figure 2.4) choose Confirm.
As shown in Figure 2.5, you have completed the swap, if your wallet has not added the contract of the token that has just been swapped, you can choose Add CAKE to Metamask to automatically add to the wallet. After adding the token to the wallet, you can observe the balance of the token that has just been swapped in your wallet.
To check your swap history, select the clock icon and click on the transaction you just made (Figure 2.6).
Instructions for providing liquidity (Add Liquidity) on PancakeSwap
To farm on PancakeSwap you must first provide liquidity to the pools you want to farm. Here are the steps for you to provide liquidity.
Visit the liquidity provider page. You can act like Figure 3.1 or you access the link: https://exchange.pancakeswap.finance/#/pool
Choose Add liquidity (Figure 3.2).
Select the token pair you want to create Liquidity then select Supply (Figure 3.3). This Liquidity pair will depend on what pool you want to farm in. For example, you want to farm in the pool CAKE-BNB then you have to create liquidity pair CAKE-BNB.
Confirmation of creating liquidity (Figure 3.4)
Confirmation on wallet (Figure 3.5).
So you have finished creating Liquidity on PancakeSwap, to check the transaction has just been made, click on “View on bscscan“ (Figure 3.6)!
Now when you visit the Liquidity creation page, you will see the LP token pair you created. As Figure 3.7 to be CAKE-BNB
Guide to Farming on PancakeSwap
Before you take the steps to Farming you need to create liquidity for the pool you want to farm. Steps to create liquidity you follow the instructions in section “Instructions for providing liquidity (Add Liquidity) on PancakeSwap“ in this post.
After you have LP token, you do the following steps:
Visit the Farms page. You can act like Figure 4.1 or you access the link: https://pancakeswap.finance/farms
Select the pool where you created the LP token, and click on Enable (Figure 4.2)
Confirmation on wallet (Figure 4.3).
Next choose Stake LP (Figure 4.4).
Enter the number of LP tokens you want to use to farm. If you want to use the entire LP token, you can choose Max, then click Confirm (Figure 4.5).
Confirmation on wallet (Figure 4.6).
So you have finished farming CAKE on PancakeSwap (Figure 4.7).
After completing the above steps, at the page interface Farms you click Details At the pool where you farming, all the information you need to know will be displayed (Figure 4.8).
- The APR of the pool you are farming. If you want to see detailed information, you can click on the calculator icon next to it to see the interest rate calculated by day, week, month, year.
- Total value of tokens locked for farming in the pool.
- The number of CAKEs received by the pool for each completed block. Specifically in the picture is 40.
- The number of CAKEs that you have farmed.
- Choose Harvest to withdraw farmed CAKE to your wallet.
- The number of LP tokens that you are locking to farm.
- Add or remove LP tokens to the pool. Sign – is to reduce your LP token in the pool, and the sign + is added. If you don’t want to farm anymore, you can withdraw all LP tokens.
Instructions to remove liquidity on PancakeSwap
To remove liquidity on PancakeSwap, you need to go to the page Liquidity either visit the link: or you access the link: https://exchange.pancakeswap.finance/#/pool. Here you will see the LP token pair you have, select the liquidity pair you want to remove and click on Remove (Figure 5.1).
Next you can use the drag bar to select the LP ratio you want to remove. After choosing the ratio, click on Approve (Figure 5.2).
Sign the confirmation on the wallet and then select Remove (Figure 5.3).
Next click on Confirm to confirm it’s done (Figure 5.4).
Currently some features on PancakeSwap are not opened such as Lottery, IFO So I do not guide in this article. In the near future, when these features are opened, I will guide you in detail in this article.
PancakeSwap is really a DEX that you should learn how to use. It has many features, low fees, and many small tokens for “lottery” enthusiasts. If you do your research, you will probably find very effective money-making opportunities on PancakeSwap.