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    Battle of Dexes- Uniswap vs Pancakeswap

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    Decentralized exchanges are cryptocurrency exchanges that are not centralized, It operates in a decentralized way such that there is no central authority as transactions are done via peer to peer without intermediaries. Today we will be looking at two prominent decentralized exchanges (Uniswap vs Pancakeswap), their features and the advantages one has over the other.

    What is Uniswap?

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    Uniswap is an automated liquidity protocol powered by a constant product formula and implemented in a system of non-upgradable smart contract on the Ethereum blockchain. It removes the need for intermediaries thus prioritizing decentralization and security of funds.

    Uniswap has taken over a greater share of the decentralized exchange market boosting an astonishing 63% control across the DEX landscape according to Dune Analytics.

    Advantages of Uniswap

    -There are no KYC processes and you don’t have to sign up or disclose your identity to use Uniswap

    -There is no centralized authority to limit your usage of the exchange or block your funds.

    -Having no KYC allows for easy set up of trade as all you will need is just to connect your Ethereum wallet address like Metamask by visiting https://uniswap.org/  here you click on connect wallet then select Metamask, boom you are in.

    -Listing a start-up project is also a great way to generate funds as there are no listing fees or thorough scrutiny associated with listing on centralized exchanges, here projects are listed freely and it allows the supporters of a project to finance it by adding liquidity to the market.

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    -Providing liquidity is also a great advantage of Uniswap to traders and investors as they get rewarded via fees generated by Uniswap. Adding liquidity is very simple because you deposit tokens into a liquidity pool smart contract and receive pool tokens which you can also liquidate at any moment.

    Furthermore, it is safe to say Uniswap is truly decentralized as just anyone can list any project there and get the necessary exposure and support for the project in question.

    What is Pancakeswap?

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    Pancakeswap is a decentralized exchange running on the Binance Smart chain with lots of other features that lets you earn and win tokens. It’s fast, cheap and anyone can use it to swap BEP-20 tokens.

    Advantages of Pancakeswap

    – The exchange is an automated market maker that allows two tokens to be exchanged on the Binance smart chain at minimal cost

    • You can also earn Cake (the native token of Pancakeswap) with yield farms, earn cake by staking and earn more tokens with syrup pools
    • Exchange:
      Token swaps on Pancakeswap are a simple way to trade one BEP-20 token for another via automated liquidity pools. The liquidity provided to the exchange comes from liquidity providers(LP) who stake their tokens in pools. In exchange, they get FLIP tokens which can also be staked to earn Cake tokens on the farm.When you make a token swap (trade) on the exchange you will pay a 0.2% trading fee which is broken down as follows;
      0.17% – returned to liquidity pools in the form of a fee reward for liquidity providers
      0.03% – sent to the Pancakeswap Treasury.
    • Farming and Staking on Pancakeswap: Pancakeswap also allows anyone to farm its governance token. You can deposit your LP tokens locking them up in a process that rewards you with Cake.

    Accessing Pancakeswap: To access Pancakeswap, one need to unlock wallet by visiting https://pancakeswap.finance/, there you will see several options that allow you to choose your wallet of choice and then click connect. There you will have unlimited access to all the various features of the Pancakswap such as Farming, Staking, adding liquidity etc.

    Conclusion:

    Decentralized exchanges are gradually taking over the cryptocurrency space given the relative ease at which one can trade or swap tokens for another even as it allows for flawless peer to peer transactions without central control or intermediary. Several decentralized exchanges witness a growing user base daily as users look for easy, trusted and risk-free ways to trade cryptocurrencies without interference

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