In this article I’ll cover
- Pancakeswap protocol and product
- Pancakeswap Team and Community
- Financial Metrics
- Tokenomics
- Smart contract safety
- Final thought (Conclusion)
PANCAKESWAP PROTOCOL
Pancakeswap is a leading decentralized exchange in BNB smart Chain that enables different trading activities on its protocol.
Pancakeswap product
- Exchange: An exchange is the heart of pancakswap. It's one of the leading AMM on the BNB smart chain. Exchange offers the following features
i. Swapping/trading: pancakswap lets users trade without the need to go through a CEX
ii. Liquidity pools: it's the feature that enables the swapping of tokens, providing liquidity to any of the pools to earn rewards
iii. Yield farming: yield farming lets users that provide liquidity earn CAKE reward by locking their LP tokens into a smart contract
- Stableswap: it's a feature on pancake that allows users to trade pairs with a lower slippage based on the invariant curve slippage fraction. It's designed to swap specific assets that are priced closely such as USD (HAY, BUSD & USDT)
- Lottery V2: Enable pancakswap users to perform a lottery which gives them a chance to win a huge CAKE prices
- Prediction: users can also predict whether BNB or CAKE prices will rise or fall.
TEAM & COMMUNITY
@chef_mochi - head of the chief
@chefCadbury - Project manager
Twitter - 1.6M followers, with over 5-10k active community
Discord - 28k members with over 3k followers
FINANCIAL METRICS
Circulating market cap - $676.26m
Fully diluted market cap - $2.78b
Total value locked - $2.46b
Fees - $10.0k
Active developers - 16.03
Revenue - $3.20m
Daily active users 123.07k
Source of the revenue: The revenue is majorly gotten from trading fees
The revenue is gotten shared between liquidity providers and some part goes to get protocol (CAKE HOLDERS)
- Composition by contract
i. Others - $172.5k
ii. USDT - WBNB - $37.3k
iii. WBNB - BUSD - $45.3k
iv. USDT - BUSD - $16.6k
v. ETH - WBNB - $5.1k
vi. SQUA - WBNB - $4.8k
vii. CAKE - WBNB - $3.2k
viii. BTCB - BUSD - $4.9k
ix. BTCB - WBNB - $4.1k
x. USDC - BUSD - $3.01k
TOKENOMICS
Circulating supply 182, 448, 202
Total supply 376, 868, 148
Max supply 750, 000, 000
SMART CONTRACT SAFETY
- Smart contract & Team: The smart contract is easy to find, the primary contract is fully active, it has a public software repository, no development history that is visible & the team is anonymous
- Documentation: There is a whitepaper, although the protocol software is not documented, the software documentation is fairly fully covered by the deployed contract source code, and it's very hard to trace the documented software to the implementation
- Testing: The protocol has tested its deployed code, the code is fairly covered, there is no detailed report of the protocol software, no formal verification and the smart contract wasn't deployed to a testnet
- Security: The protocol is sufficiently audited & the bounty value is acceptably high
-Admin control: The protocol admin control is easy to find, with the contract closely labeled as upgradable or immutable, and the ownership of the smart contract is indicate that the protocol's oracle is not sufficiently documented, and there is no mitigated front-running, fashion attack is also not mitigated.
Pass score 54% reasonable trust to the smart contract
FINAL THOUGHT
Pancakeswap offers quite a good number of enticing products, from liquidity providing to farming and then trading.
By TVL statistics it's the 3rd largest TVL volume, supporting chains like BSC which is the base chain, Ethereum and Aptos.
ROI can be gotten from major liquidity providing and farming the CAKE tokens
The protocol safety crossed a pass mark of the half, which makes it a fairly trusted smart contract.
