An alternative to centralized exchanges, PancakeSwap (CAKE) is based on Binance’s Smart Chain (BSC). Trading directly with a liquidity pool is made possible through its use of an automated market maker (AMM) model. Users stake their funds in exchange for liquidity provider (LP) tokens, which populate these pools. Additional ways for users to earn rewards include staking LP tokens or providing liquidity. You can stake PancakeSwap’s utility token, CAKE, to get rewards, enter lotteries, and have a say in management decisions.