Launched in September 2020, PancakeSwap is a decentralised exchange launched by Binance under the Binance Smart Chain. It was created to provide an affordable and accessible alternative for users, and therefore offers much lower transaction fees than its competitors.

It allows users to exchange tokens with each other using liquidity pools, which they can use to earn income and earn rewards by staking their own CAKE tokens. Liquidity pools are automated and run by algorithms (AMM, automated market maker). Another activity that offers good returns is farming.

PancakeSwap's own token is CAKE, a BEP20 token issued on the Binance Smart Chain. CAKE's main function is to stimulate liquidity on the PancakeSwap platform.

Users can also participate in a lottery. Each draw lasts for 6 hours and costs 10 CAKE per ticket, containing 4 numbers between 1 and 14. The jackpot, or prize, is 50% of the lottery pool. PancakeSwap also features NFTs, which can be won and then kept or converted into CAKE.