How often does Pancakeswap compound? In this article on the Shetcoiner website, we want to examine this issue and point out what Pancakeswap is and what it does for us. If you are also interested in increasing your knowledge in the field of crypto currencies, stay with me until the end of this article.
What is PancakeSwap?
PancakeSwap is a decentralized exchange built on the Binance smart chain, a fast and cheap alternative to Ethereum. Similar to the Uniswap DeFi AMM protocol running on Ethereum, PancakeSwap enables users to trade between cryptocurrency assets using user-generated liquidity pools.
If you want to build liquidity pools, PancakeSwap offers many DeFi farming opportunities for liquidity providers. Raising liquidity has been attractive to many people so far, and more than $1 billion in total locked value (TVL) has flowed into PancakeSwap. Additionally, one thing to note is that unlike Uniswap, PancakeSwap offers rewards them for sharing its core token called CAKE. When you stake a cake, you get a 1:1 value and are entitled to share 25% of the cake distribution proportionally between Distribute holders.
How does “Automatic Cake Pool” work? How often does Pancakeswap compound?
I gave you information about the token of this platform that you can use to generate income for yourself. Just place your cake in the auto pool and we will do the rest for you automatically. When your cake or your token is staked, it will be automatically taken by the people who request it and this amount will be returned again. So, you don’t have to worry about anything; Because everything is being done correctly and with a structure similar to a bank. Next, we want to check the fees of its different departments together.
What are the auto cake pool fees?
The amount you pay as a deposit fee is zero, but if we want to calculate it in Unstaking mode; Within the initial 72 hours, to exit this condition, 0.1% of your assets will be deducted until your exit is confirmed. After 72 hours, you can withdraw without paying any fees.
Another condition that exists is the performance fee in which case 2% of each asset withdrawal is automatically deducted. For example, if the withdrawal was 1 cake, 0.02 cake will be deducted as performance fee.
What is the best way to use an automatic pool?
The best thing you can do is deposit your cake, but only withdraw it after 72 hours if you need it and don’t intend to invest. In this way, you will not pay any more fees.
How is APY calculated?
APY is set based on compounding a pool per hour. In fact, the entire pool is likely to be compounded more than this amount, which is encouraged by the “auto cake bonus”, so the APY is adjusted to reflect a more accurate rate when we have the initial data.
Conclusion
In this article on the Shetcoiner site, we reviewed PancakeSwap and checked what exactly this exchange does. In addition, we talked about its pool and how it works so that if you are planning to invest, you can make your investment through this method. Do not forget that this is not the only way to generate income in the field of crypto currencies and you can also generate income from other methods.
