PancakeSwap
Crypto Overview
Overview
PancakeSwap is a decentralized exchange (DEX) built on the BNB Chain (formerly Binance Smart Chain). The CAKE token serves as the protocol's native cryptocurrency, powering its ecosystem of decentralized trading, yield farming, and governance.
Intended Utility
CAKE's primary intended purposes are: 1) Governance - Token holders can participate in protocol decisions through voting, 2) Staking - Users can stake CAKE to earn rewards from trading fees and emissions, 3) Platform utility - CAKE is used for various features like NFT marketplaces and gaming.
Actual Utility and Adoption
PancakeSwap maintains significant real-world usage as one of the largest DEXs by trading volume. As of 2024, the platform processes billions in monthly trading volume and has over 4 million monthly active users. The CAKE token is actively used for its intended purposes, with substantial participation in governance voting and staking.
Token Distribution and Founder Analysis
The initial token distribution allocated tokens to the community through farming rewards, with no pre-mine for founders. The development team receives a portion of trading fees to fund continued development. The project maintains transparent tokenomics with regular community updates.
Revenue Model Analysis
PancakeSwap generates revenue through trading fees (0.25% per trade), with 0.17% going to liquidity providers, 0.03% to the treasury, and 0.05% to CAKE token buyback and burn. This model does not involve interest-bearing mechanisms.
Crypto Impact
To assign a comfort level investing in PancakeSwap from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to PancakeSwap.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.