PancakeSwap and SushiSwap provide decentralized exchange, community management, yield farming, and liquidity provider capabilities. SUSHI and CAKE pay rewards to token holders.
To understand who has the advantages of SushiSwap vs PancakeSwap, let’s consider both crypto projects separately.
Features of SushiSwap
SushiSwap is a project of the former participants of the Uniswap decentralized exchange. Its improved version with expanded functionality and some key differences. The main such difference is its SUSHI token. At the time of launch, the token does two things: it gives the holders the right to exercise control and claim a portion of the fees under the protocol. Simply put, SUSHI holders own a stake in the protocol.
The rise of liquidity mining (profitable farming) as a method for the fair distribution of tokens has led to many new DeFi tokens. All of them are aimed at creating a level playing field for all participants:
- without any preconditions;
- with little or no funding from the founders;
- and equally distributed based on available funds.
Tokens distributed through these liquidity channels subsequently give their owners control rights. In addition, SUSHI holders are also entitled to a portion of the fees contributed to the traders’ protocol.
Token holders can also make so-called SushiSwap Improvement Proposals (SIPs) based on their governance rights. Such proposals are then voted among all SUSHI holders and, therefore, accepted if necessary. These could be minor or even significant changes to the SushiSwap protocol. Thus, the future development of SushiSwap is in the hands of the community.
As such, the community is one of the two pillars on which SushiSwap’s success is based. Another pillar is the willingness of the crypto community to provide sufficient liquidity to the protocol.
On SushiSwap, any conventionally hired person can contribute some liquidity to the pool and receive a reward in the form of SUSHI tokens. However, these tokens also entitle you to continue receiving a portion of the protocol fees accumulated in SUSHI, even if you decide to end your participation in providing liquidity.
The profit you receive from staking is proportional to the number of tokens in the liquidity pool you have entered into the protocol relative to the total number of deposited tokens. Thus, if your contribution is 5% of the entire pool, you will also earn 5% of the tokens allocated in it.
SushiSwap has not been professionally audited. Donating funds to a smart contract always risk mistakes, even in proven and highly reputable projects. In addition, the developers behind SushiSwap do not disclose their names, which immediately leads to evil thoughts.
Features of PancakeSwap
PancakeSwap is a striking representative of a new generation of cryptocurrency exchanges that operate in a decentralized manner. The site has been very young since it began its work in September 2020. Nevertheless, the platform has already taken a prominent position in the market and has a daily turnover reaching $ 500 million.
Users are attracted to the exchange by carrying out fast and cheap transactions, which is ensured by its Binance blockchain operation. In addition to the possibility of carrying out transactions with cryptocurrency, the exchange clients are allowed to earn money in several directions at once.
Like all decentralized cryptocurrency trading platforms, PancakeSwap operates autonomously and is not managed by developers. By the way, the project creators are anonymous, and the community controls the exchange. By voting, the participants make decisions on the development of the platform.
The peculiarity of the PancakeSwap cryptocurrency exchange is that it works on the BSC blockchain. And it allows its users to carry out operations with BEP-20 tokens. Transactions take place at the expense of a pool of liquidity. Anyone can invest and will receive profit from it.
Unlike centralized exchanges, where trading takes place between traders, in PancakeSwap, the transaction takes place between the client and the liquidity pool. When a client carries out a trade, he pays a commission of 0.2%, distributed between the liquidity providers and the project budget.
The advantages of the PancakeSwap crypto project include the following features:
- To work with the exchange, you do not need to create an account on its website.
- The user remains anonymous.
- There are low commissions of 0.2% per transaction, and transactions are carried out as quickly as possible.
- The client does not need to transfer his money to the exchange to carry out transactions.
- An enormous list of wallets can be connected to the exchange.
- PancakeSwap provides many opportunities for earning: farming, staking, lottery, gaining profit on the growth of the CAKE token rate.
- The exchange is actively developing and adding new opportunities for users. In particular, the plans include the introduction of lending, binary options, and margin trading.
- By voting, clients of the exchange can support new directions for the development of the site or any updates (including choosing tokens for listing).
- PancakeSwap is provided in many language versions.
- The exchange has been audited by the reputable cybersecurity company CertiK.
If we objectively consider PancakeSwap, then we can say that the exchange has no significant drawbacks. Nevertheless, it should be borne in mind that the exchange operates completely autonomously according to pre-written intelligent contracts. It cannot be excluded that there may be an error in the code that could lead to security problems.
In addition, the exchange has all the same drawbacks as any other decentralized project. When carrying out transactions, you must be extremely careful because transactions are irrevocable. In case of any mistake on your part, it will not be possible to cancel the operation and return the money.