Topic: AMM, what are liquidity pools, farms, $cake, $syrup, etc. (Read 24 times)
Liquidity pools allow you to earn a single or native token of that project by staking only one token for the same, like BUSD, ETH, USDT and the native token itself and many more. While farming gives you the opportunity to do combined staking but it is prone to impermanent loss. Cake is the native token of pancakeswap which can help you earn more native tokens of another project if they tie up with pancakeswap. I don't know about syrup, so would skip defining it.
So on AMMs like PancakeSwap, I use the exchange/trade to swap tokens, but what are the rest for and how does it all work together?
Thanks
Thanks
Actually, there are so many things that you can do in pancakeswap apart from just trading. To provide users with the necessary liquidity for exchanges it offers to stake your assets in different pools, where you get interests and also some cakes. Also It offers a lottery where you buy tickets, and then you should match numbers, from the left side of your ticket, to the winning numbers drawn at the end of a Lottery round. Also there is a prediction market, where you have to predict if the price of BNB/USDT will be higher or lower than it was when the “live” phase starts.
Moreover, it provides an NFT-system, where you can choose your own name, join a team, and choose from NFT profile images you've collected to use as your profile's display picture.
So on AMMs like PancakeSwap, I use the exchange/trade to swap tokens, but what are the rest for and how does it all work together?
Thanks
Thanks
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