What is pancakeswap NFT, and how does it work?
Have you ever thought about what precisely a pancakeswap NFT is? Why does it seem that the entire crypto community is constantly talking about the ever-growing pancakeswap NFT marketplace and thinking about investing in one of these popular NFTs nowadays?
It is no secret that there has been enormous pomp around the Non-Fungible Token, especially in the previous two years. Crypto enthusiasts and an increasing number of ordinary people have become interested in investing in NFT.
One of those we will give you all the necessary information is the pancakeswap NFT. But before we move to this particular NFT, let’s get to know what NFT is in the first place, shall we?
NFT – explained to total beginners
NFT is short for “Non-Fungible Token”, representing a non-interchangeable unit of data stored on a digital ledger, the famous Blockchain technology. In other words, we are speaking of financial security that can be transferred by the owner, allowing that particular NFT to be traded and sold.
Most commonly, NFTs contain references to multiple digital files such as audio, videos, photos, etc. Since these tokens are uniquely identifiable, they are different from other cryptocurrencies that are fungible. Keep in mind that the NFT market value is strictly associated with the digital file it represents.
What proponents of NFTs claim is that they provide two crucial things:
A public certificate of authenticity
Proof of ownership
Although at first, NFTs were in the form of pictures, audio, and videos, today, they can be found in other digital files such as memes, GIFs, and tweets and physical forms, for example, for real estate. So, what about the pancakeswap NFT that has drawn immense popularity nowadays? Let’s get to that!
Pancakeswap NFT – definition and explanation
Pancakeswap refers to a decentralized, fast, and quick exchange (DEX) developed to facilitate the swapping of BEP-20 Tokens. BEP-20 represents a Binance token standard that must be followed on the Binance Smart Chain Evolution Proposal.
The anonymous team behind the platform was launched in September 2020. However, it’s been audited by Certik, Slowmist and other blockchain security companies. So, if any token standard aims to be transferable on the PancakeSwap exchange, it must be wrapped in the BEP-20 standard for that swap.
You may consider Pancakeswap a fully decentralized exchange where both trades and orders are automatically executed via smart contracts. If you didn’t know, an intelligent contract refers to an agreement between two parties that functions like a written contract.
Understanding the pancakeswap NFT marketplace
The pancakeswap NFT marketplace is considered one of the biggest NFT marketplaces on the BNB Chain. It allows all its users to purchase, sell, and trade unique Non-Fungible Tokens on the protocol. Pancakeswap NFT marketplace features a simple User Interface for quick and easy navigation and, probably, the best collections in the space.
Users are able to trade all available digital assets on the platform because PancakeSwap uses an automated market maker model known as the “AMM“. Using this model means no order book where the user is directly matched with someone else. Instead of that, all trading happens against a liquidity pool.
The PancakeSwap platform is especially great for those who want to sell their NFT collections with meager fees. Keep in mind that the PancakeSwap platform subtracts 2% from every NFT sale on the market, which is utilized to purchase back and burn its native $CAKE tokens.
Meet the $CAKE token on the PancakeSwap platform
The native governance token on the PancakeSwap platform is the famous $CAKE token. It is a BEP20 token that’s considered the native cryptocurrency of the protocol. All users supply liquidity to allow other users to swap tokens with ease.
In addition to that, users can stake their $CAKE to earn numerous tokens from other projects that offered them as incentives on the platform. On the other hand, they could stake their CAKE to earn SYRUP, which serves as a governance token and as a ticket to a lottery.
The current statistics of $CAKE
At the moment of writing, here is what $CAKE statistics look like:
Market Capitalization: $815,9 M
24h Volume: $88,86 M
Circulating Supply: 170,31 M CAKE
Max Supply: 750 M Cake
Note that this data varies from one day to the next, so it’s always recommended to check it online on the official crypto website.
How does the PancakeSwap NFT work?
The PancakeSwap stands for an automated market maker, as we have learned so far. It’s clear that AMMs don’t utilize an order book for connecting vendors and buyers. Instead of that, PancakeSwap uses advanced algorithms and LPs in order to connect vendors and buyers directly.
Keep in mind that AMMs improve speed and minimize slippage. So, today we have a lot of leading platforms such as SushiSwap and Uniswap that function as AMMs. When it comes to the token swap feature on this famous platform, we already mentioned that it allows users to exchange one BEP20 token for another with automated liquidity pools.
So, LPs stake their tokens in so-called “Syrup Pools” in order to offer liquidity to the exchange. All users get the PancakeSwap Liquidity Provider, known as “FLIP”, which they can stake in the “farm” to generate CAKE tokens. Keep in mind that every Farm that PancakeSwap utilizes includes its smart contract.
A brief history of the PancakeSwap platform
Before we move to the pancakeswap NFT art, we’d like to introduce you to a brief history of its platform. In September 2020, anonymous developers developed the famous PancakeSwap platform to have cheaper and quicker transactions than Ethereum. Once it was launched, Ethereum was plagued by delayed and pricey transactions.
In 2020 Defi’s popularity skyrocketed, creating a massive demand on the network and prohibitive transaction costs. Almost every DeFi application ran on Ethereum at that time. Besides decreased network costs that BNB Chain enabled, PancakeSwap also provided users with a lower swap charge of 0.2%, which was a great thing compared to the industry norm of 0.3%.
Thanks to this low-fee methodology, PancakeSwap experienced tremendous growth in trading volume and TVL, the total value locked. According to trade volume, in 2021, PancakeSwap became one of the industry’s leading DEXes. Due to branding, lower network costs and new, creative services, PancakeSwap’s TVL increased significantly.
This platform intends to broaden its scope to include margin trading, lending and borrowing, margin trading, and other prediction markets. In May 2021, PancakeSwap reached a fantastic sum of US$7.8 billion in TVL. As of May 2022, the sum is approximately US$4 billion.
PancakeSwap NFT art
Of course, we can’t help but mention the famous PancakeSwap NFT art for various reasons. First, the daily increase in demand and popularity makes PancakeSwap NFT art stand out as something unique and worth mentioning. So, what is it all about exactly?
PancakeSwap entered the world of Non-Fungible Tokens in August 2021, causing considerable excitement across Binance Smart Chain (BSC). Although it didn’t have a name, the PancakeSwap NFT art was voted by users to be called “PancakeSwap Squad”.
The PancakeSwap Squad Collection
So, once a pancakeswap NFT art got its official name, we could tell that it would become prevalent among the crypto community. Characteristics of the collection are the following:
Lots of fun
Each PancakeSwap bunny is different and unique. At the moment, there are more than 10,000 bunnies. These bunnies are randomly generated from more than 200 features, with over eight billion combinations. That’s why no bunny is genuinely like one another. Besides that, just a few ultra-rare special unique bunnies you could find.
Allocation to Squad Ticket Holders
It is also interesting to know about the PancakeSwap Squad because it’s fair, random, and rare. Every PancakeSwap NFT is allocated to Squad Ticket holders via a provably-fair system based on ChainLink at the exact time of Minting.
So, out of the total 10,000 bunnies, 490 of them are available in the pre-sale for owners of Gen 0 Pancake Bunnies. It refers to bunnyID 0, 1, 2, 3, 4. On the other hand, 120 of them are reserved by the team for events such as community giveaways.
Keep in mind that the remaining NFTs are able to be minted by any person with a Pancake Profile!
How to get a PancakeSwap NFT for yourself?
To buy a PancakeSwap NFT, it is essential to follow these steps:
Activate your profile on the official PancakeSwap website. You can do so by Minting Tickets and Minting PancakeSwap Squad NFT, as well.
Hold a CAKE token. Keep in mind that every NFT costs CAKE to be minted. To cover transaction fees, you’ll also need a BNB.
Purchase Squad tickets while stocks last.
The claim phase is what happens next. Any wallet that includes a Squad Ticket can redeem its ticket to claim a Pancake Squad Non-Fungible Token.
Be patient since it will take days for your unique bunny image to be revealed. Keep in mind that trading will open before all the images are live. However, you’ll be able to check the bunnies’ stats without any problems!