What is Liquidity in PancakeSwap Explain with examples ?and add Liquidity in PancakeSwap

Liquidity In PancakeSwap Explained With Examples

PancakeSwap is a decentralised finance exchange system which I will be explaining more in a later section in this write-up. Generally, liquidity in decentralized finance refers to the total collection of assets or tokens of funds that are locked up or contributed towards the feasibility of what is called a smart contract. Therefore, liquidity in PancakeSwap refers to all the assets that have been locked up as a way of making them available or contributing them towards the development and workability of a particular smart contract. Usually, these assets that are locked up in what is known as the liquidity pool are beneficial for the enablement of such projects on the decentralized exchange like lending, borrowing, Decentralized trading, etc. This liquidity that is provided on the PancakeSwap decentralized exchange acts as the backbone which powers up or enables smart contracts to run on the exchange.

In order to create markets people that are known as Liquidity Providers (LPs) would normally add an equal amount of two different tokens to the pool thereby creating a liquidity pool. Usually, such liquidity providers are rewarded from the trading fees that occur on the PancakeSwap exchange. The rewards are always directly proportional to the share of liquidity contributed by each LP. Bancor was the very first to make use of liquidity pools in decentralized exchange. However, they are now also being used by other Ethereum-based decentralized exchanges like Uniswap, Curve and SushiSwap as well as decentralized exchanges on the Binance Smart Chain like the PancakeSwap itself, BurgerSwap and BakerySwap.

Examples of liquidity provided to the liquidity pool in the PancakeSwap exchange are as shown below:

Adding Liquidity In PancakeSwap

In adding liquidity to PancakeSwap, I have to do it with my Trust Wallet. I will be providing liquidity of the PancakeSwap CAKE token and an equivalent amount of BNB to the liquidity pool.

First of all, you must have the amount of tokens you wish to add to the liquidity pools in your Trust Wallet. From the screenshot below I already have the CAKE token and smart chain BNB in my Trust Wallet.

I then open the Dapps browser in my Trust Wallet and then click on the PancakeSwap protocol.

On the new tab that opens I toggle liquidity and clicked on Add Liquidity

On the new tab that opens I input the coins as well as their equivalent amounts I wish to supply to the liquidity pool

On the new page that opens up I click supply

Another page opens up and I then click on confirm supply to proceed

The next page opens with the details of the tokens I wish to supply together with the fees payable. I click approve to continue.

The next page opens up with the message transaction submitted and I click close.

Shortly afterwards I check on the PancakeSwap dashboard to discover that the tokens I had provided to the liquidity pool had been displayed as pooled BNB and pooled CAKE as shown below

How to connect Binance exchange account with Binance smart chain or trust wallet. Explain all the steps through screenshot. And transfer any coin from Binance exchange to Binance smart chain.

Connecting Binance Exchange Account With Binance Smart Chain

In connecting my Binance Exchange account with a Binance Smart Chain protocol I would like to use the Binance Chain Wallet as the gateway. I will be describing the process I took in connecting my binance account to the binance smart chain through the binance chain wallet.

First, I visited https://chrome.google.com/webstore/detail/binance-chain-wallet/fhbohimaelbohpjbbldcngcnapndodjp?hl=en and clicked on add to Chrome in order to add the chain wallet as a Chrome extension

Then I have to confirm that I want to add this up as a Chrome extension by clicking on add extension:

From the screenshot below which indicates Remove from Chrome shows that it has been added and can be accessed as a Chrome extension:

Then I click on the Binance chain wallet from Chrome extensions and a new window displays for me to either import an existing binance chain wallet or to create one. However, since I do not already have an existing wallet I click on create wallet

I then clicked to generate seed phrase:

I now have to enter a new strong password. I confirm the password and then click continue

A new window opens up with the seed phrases which I am required to backup and I click on continue

After doing this my new wallet appears as shown below:

To connect this wallet which I can use to interact with the binance smart chain to my binance Exchange account I click on the icon to the top right corner as indicated below:

From the new window that appears I click on connect to binance.com account:

This takes me to a new page on Wallet Direct. I then click on verify and connect my address:

Then a new window opens where I am required to log in to my binance.com account with my email and password

I verify my email and phone through the verification codes:

I go back to Wallet Direct page and click verify and connect my address

A new page pops up where I am required to agree to a wallet Direct notice

Another page opens up and begins the process of verifying the ownership of my address. I click connect to Wallet

The next page opens up and requires me to sign the request. I click connect

On another page I am required to sign the message and I click sign with wallet

Then I'm required to sign the sign on the next page. I click confirm

The next page shows a message which indicates that I have successfully connected the address. I now click Bind

Another page opens up with security verification and I input the codes I received on my phone and email and click submit

A new page opens up and shows that my address has been connected (that is, my binance.com Exchange account has been successfully connected to the binance smart chain)

Transferring A Coin From Binance Exchange To Binance Smart Chain

In order to transfer a coin from my Binance exchange to the binance smart chain, I will have to make use of the binance chain wallet which has been connected to the binance smart chain

To do this I click on the binance chain wallet chrome extension. I input my password and click unlock

This reveals my wallet with its BNB balance. I click receive

On the new page that shows up I choose receive method by clicking wallet Direct

The new tab that opens up shows my BNB balance on my binance.com Exchange account. I select it

A new tab opens up where I have to input the amount of BNB I wish to transfer from my binance.com account to the binance smart chain through the binance chain wallet then. I click next

On the new page that opens up, I input the verification codes sent to my phone and email in order to confirm the transaction

A new page displays a message which says pending for the transaction

I then check the binance chain wallet to discover that the BNB has been added to the Binance smart chain network

What is the difference between Trust Wallet and Metamask and which of them is better and why? Explain in your own words.

Explanation Of Trust Wallet

Trust Wallet is a kind of mobile wallet that was developed for the storage of crypto both ERC-20 and BEP-20 assets including Ethereum and other Ethereum-based tokens like the ERC-223 and ERC-20 tokens. Also, there are a lot of other tokens that are supported including the Bitcoin as well as many other tokens and an ever-increasing list of crypto networks. The system works with a security-audited technology that makes it possible to safely store supported crypto coins. Trust Wallet makes it possible for users to quickly have access to their funds especially as participation in decentralized applications are currently on the rise. Payments, investments, access to DApps as well as a lot of other functions can be carried out directly with funds that are stored on the mobile wallet. The Trust Wallet, as a mobile app, equally gives you full control of the private keys associated with it.

Also, the mobile application makes it possible for you to store different tokens associated with different projects in the cryptocurrency market. Again, a lot of different blockchains usually become accepted and adopted on the platform over time. Furthermore, the Trust Wallet works as a multi-coin or universal wallet which enables you to use just one backup for the protection and security of all the different underlying assets. Officially, Binance adopted Trust wallet as its preferred crypto assets token. As such they are currently working in partnership to develop a native decentralized exchange, test networks, custom networks market monitoring structures as well as greater level of integration with the Binance technology.

Features And Advantages Or Benefits Of Trust Wallet

There are quite a lot of interesting different features that are associated with the trust wallet. Some of the features include:

(1). Trust wallet has a Web3 browser that is built inside it which makes it possible for you to access decentralized applications from the trust wallet interface.
(2). It is arguably very safe and secure
(3). The wallet does not have access to the funds or assets of users
(4). The security infrastructure relies entirely on users locally hosting or storing their private keys by themselves
(5). The interface is intuitive and very user-friendly
(6). The private keys can be used with other services and you can import other wallets into the Trust Wallet
(7). It incorporates a backup file which can be stored on paper or digitally and which can normally be used to recover the wallet
(8). The wallet is ideal for buying, selling, storing or even swapping of coins
(9). It incorporates features which support access to internet lending/borrowing and staking facilities
(10). It is free, readily accessible and can be installed on Android and iOS supported platforms including tablets. Moreover, it can also be installed multiple times on different devices.
(11). The Wallet Core upon which the Trust Wallet is built has features that make it possible for other developers to equally build wallet on the same platform thereby enabling collaborations
(12). The network is quite permissionless and enables you to have full access to your phone's anytime and at any place
(13). It allows different or multiple blockchains or networks to easily store their tokens and is therefore known as being blockchain agnostic.
(14). It is possible to purchase coins on Trust Wallet with bank accounts and credit cards and the network is currently working to incorporate order modes of payment.

Disadvantages Or Shortcomings Of Trust Wallet

(1). It is relatively not as safe as hardware wallets since it is still internet-base
(2). It is only available on mobile and tablet, not on PC or internet web browser
(3). There is no two-factor authentication
(4). It is only connected to the Binance Smart Chain

Explanation Of MetaMask Wallet

The MetaMask Wallet is a sort of internet-based wallet for the storage of cryptocurrency assets and a gateway through which decentralized applications that are based on the Ethereum blockchain can be assessed. It comes with the ease and comfortability of making it possible to access Decentralized exchange is gaming sites gaming platforms and other decentralized finance protocols that are hosted on the Ethereum blockchain without having to download the blockchain entirely. The wallet can be accessed as a mobile app which is compatible with both Android and iOS devices and tablets and can also be added as browser extensions to most of the popular browsers including Microsoft Edge, Firefox, Chrome and Brave browsers. Basically it stores Ether, which is the Ethereum native token as well as ERC-721 and ERC-20 tokens.

The wallet was founded by Aaron Davies together with ConsenSys, which is a blockchain based internet company. Between 2016 and 2020 when it was founded it had grossed over 400,000 users. It has since reached an over 3 million monthly users mark as at April, 2021. It comes with an important security feature of encryption of private keys together with available backup files which can be locally stored in the devices of users. Interestingly it now comes with features that make it possible for users to connect different wallets and they can easily switch between different supported smart chain protocols like the Ethereum mainnet and some other major testnets.

Features And Advantages Or Benefits Of MetaMask Wallet

(1). The one that makes it possible to buy, sell or simply store crypto assets
(2). It enables features for the swapping of crypto coins
(3). It supports decentralized finance applications
(4). It is quite safe and secure and allows users to locally store their private keys and backup files
(5). It can easily be added and integrated as browser extensions for easy access
(6). Equally it is supported on Android and iOS platforms and devices
(7). It has an easy to learn and access user friendly interface with minimal complex features
(8). It has features that enable the storage of NFT cryptocurrency collectibles and art.
(9). Ethereum smart chain based, Binance Smart Chain based and some other smart chain mainnet tokens are supported
(10). It is open source and has a large community of developers contributing to its development on a regular basis
(11). It has a strong and reliable customer support

Disadvantages Or Shortcomings Of MetaMask Wallet

(1). As a web browser based application it can be dangerous since, although, the wallet itself does not have access to your data, the browsers could have access to your data especially when it comes to Google Chrome and Firefox that do not have good records when it comes to managing the data of users
(2). The fact that it is internet-based makes it more exposed to the inherent danger of being hacked more than hardware wallet.
(3). It only supports ERC-20 based tokens and Ethereum.
(4). The time rate of syncing to blockchain and confirming transactions can be slow sometimes.

MetaMask Or Trust Wallet?

In making a choice as to which is better between MetaMask and Trust Wallet and why, it would be important to understand that such a decision would be based on what the user actually wants. There is no hard and fast rule to say that Trust Wallet is better than MetaMask Wallet or vice versa. Instead you will look at the comparative advantages of both depending on the kind of transaction you want to make and then reach a decision.

Let me give a table of the comparative advantages which will determine the occasion when each may be preferred:

Feature	Comparative Advantage
Security	Just like MetaMask Trust wallet is an internet-based wallet and less secure than hardware wallets; however, Trust Wallet is more secure than MetaMask when it comes to security since it is not a web-browser-based application that could be hacked through the web browser
Supported Tokens	Trust wallet is better than MetaMask Wallet in terms of supported tokens since Trust wallet supports ERC-20, BEP-20, as well as so many other tokens but MetaMask only supports ERC-20 and Ethereum tokens
Regulation	Trust wallet has a comparative advantage over MetaMask in terms of regulation as Trust Wallet is regulated by the laws of the United States and California unlike MetaMask that has no record of regulation.
Wide Availability	MetaMask has a wide range of availability on different devices and platforms and is available on Mac, Linux and Windows unlike Trust wallet; so, MetaMask has a comparative advantage in this regard
Fees	Trust wallet has a comparative advantage over MetaMask when it comes to fees charged when purchasing coins or transferring coins as MetaMask charges about 0.87% fee on purchases while Trust Wallet is absolutely free for purchases

So, the two wallets are both good and have incredibly great features and advantages just like I've discussed. However, in a few ways they both have comparative advantages in different areas. So, it is left for you to know what you want and decide which to choose based on the features available and then the areas of comparative advantage as related to your intended transaction.

What is meant by PancakeSwap and Uniswap?And what is the main difference between them?Explain the different futures of both.Which of these exchanges is better and why? Explain in your own words.

PancakeSwap

PancakeSwap is a kind of decentralized exchange ecosystem that makes it possible for its users to easily swap, trade or exchange BEP-20 tokens while actually not transferring such tokens to the exchange but instead keeping them in the wallet where they are. This means that the tokens are exchanged or traded on the PancakeSwap DEX from the safe and different wallets where they may be and without the interference of an intermediary. It is a technology that is built on the concept of automated market makers and contracts. The exchange is built on the Binance Smart Chain (Binance Smart Chain being a platform owned by the Binance cryptocurrency exchange).

However, PancakeSwap is not controlled by Binance exchange and was actually developed and built by some anonymous developers. Although the network is primarily developed to accept BEP-20 tokens that are coming from the Binance Smart Chain protocol, it is possible to transfer other tokens through what is known as the Binance Bridge. Such tokens that are transferred in that manner to the DEX are then "wrapped" as BEP-20 tokens and can then be utilised for trading purposes on the decentralized exchange. It is developed on an automated market maker system and does not rely on the use of order books for swapping of coins by users. Instead use is made of liquidity pools from where users can directly swap their coins.

Uniswap

Uniswap is a decentralized exchange that functions by allowing users to swap, trade or exchange their ERC-20 or Ethereum-network-based tokens from the available liquidity pools. The company that first developed this protocol is equally referred to as Uniswap. The network makes use of smart contracts to facilitate and enable transactions that are automated to be carried out on cryptocurrency tokens or assets that are based on the Ethereum blockchain. In October 2020 it was said to be the largest decentralized cryptocurrency exchange as well as the fourth largest crypto exchange by daily trading volume. On the exchange, Liquidity Providers make trading a possibility by locking up some of their tokens in the liquidity pools.

As at March 2021 it was estimated that the exchange was making between $2 to $3 million in the form trading fees which is the gain accruable to the liquidity providers every single day. The decentralized exchange was created by Hayden Adams - who used to be a mechanical engineer at Siemens - on the 2nd of November 2018. It has a major noticeable feature of attempting to solve the chronic lack of liquidity problem of decentralized exchanges by making it possible for users to easily swap their tokens without having to rely on the availability of sellers and buyers at the moment.

The Main Differences Between PancakeSwap And Uniswap

The major difference between PancakeSwap and Uniswap is that while PancakeSwap runs on the Binance Smart Chain and supports BEP-20 tokens, Uniswap is developed to run on the Ethereum Smart Chain network and supports ERC-20. However there are a few other differences between the two decentralized exchanges as enunciated in the table below:

Feature	PancakeSwap	Uniswap
Operation	Runs of the Binance smart chain	Runs on the Ethereum blockchain
Listed Tokens	Has just about 200 tokens listed	Has over 1,600 tokens listed
Cost Of transaction	Involves lower transaction fees	Involves higher and increasing transaction fees
Liquidity	Has a lower liquidity ratio	Has a higher liquidity ratio
Trading Volume	Has a higher daily trading volume	Has a lower daily trading volume
Community	Currently has a slightly larger and booming community support due to its adoption by the entire Binance ecosystem	Enjoys a large community base since it came earlier but is now currently trailing PancakeSwap

Different Features Of PancakeSwap

Some of the different features of the PancakeSwap DEX include:

(1). Coins can be directly swapped between coin pairs from the liquidity pools
(2). Liquidity providers who stake their coins in the pools earn from transaction and trading fees
(3). Apart from liquidity pool coins can be staked into the Syrup Pools that also provide even more rewards
(4). There is a re-stake option that can automatically re-stake your CAKE tokens, let's say on hourly basis, there by compounding the rewards you would receive from staking
(5). There are game-like earning opportunities that can enable you wager on whether price of an asset like Binance Coin will rise or fall within a specified time
(6). There are lottery features that enable users to buy tickets that could enable them win CAKE windfalls
(7). Availability of non-fungible tokens that can be purchased
(8). Availability of Initial Farm Offering (IFO) that can give you an opportunity to buy newly of fun coins
(9). There is no interference of middlemen and users reap middlemen rewards instead
(10). It does not support shared currencies and crypto wallets would be connected to enable transactions
(11). ERC-20 tokens can be converted to the supported BEP-20 tokens

Different Features Of Uniswap

Some of the important different features of the Uniswap DEX include:

(1). Concentrated liquidity which makes it possible for a LPs to provide more liquidity and fixed or selected prices
(2). Active liquidity which works by removing and LP's liquidity from the pool if his selected price range is exceeded
(3). Range orders which enable LPs to provide liquidity at selected prices which can either be above or below the current market price and have their requests executed when the selected prices are reached.
(4). Provided liquidity can be represented in the form of non-fungible tokens
(5). The swap feature enables users to quickly swap coins between Ethereum-based tokens and Ethereum itself
(6). A liquidity pool which makes it possible for users to earn by providing liquidity
(7). It is non-custodial and allows you to retain your assets in your preferred and secure wallet while transacting on the exchange
(8). It does not require rigorous KYC procedures since it is non-custodial, after all.
(9). Availability of more listed coins which is over 1,500, though this may sometimes mean that fake coin pairs could be listed

PancakeSwap Or Uniswap

Actually, deciding on whether to settle for PancakeSwap or Uniswap would, first of all, depend on whether the smart contract you intend to interact with is listed or obtainable on the Binance Smart Chain or on the Ethereum blockchain. This is due to the fact that PancakeSwap actually deals with smart contracts that are obtainable on the Binance Smart Chain. On the other hand, Uniswap deals with smart contracts that are obtainable on the Ethereum blockchain. Again, if you are dealing with an ERC-20 token then you may decide to settle for Uniswap since it is supported over there. However, on the PancakeSwap decentralized exchange ERC-20 tokens can still be converted to the supported BEP-20 tokens through the Binance Bridge.

Again, you should not forget that Uniswap charges more fees than PancakeSwap. So, if you want to avoid being charged an increasing amount of transaction or trading fees then you may just have to settle for PancakeSwap instead. Furthermore, it can also be seen that you only earn on Uniswap when you provide liquidity. This is quite unlike the PancakeSwap where you can earn from not just providing liquidity but also participating in a lot of other features like in the yield farming protocols, contributing to the Syrup Pools, participating in Initial Farm Offerings, competitions, lotteries and a few other ways. Therefore, it is entirely up to you to decide on which one to settle for. However, I do personally prefer the PancakeSwap based on some of these comparative advantages it has over the Uniswap which I have described above

How to connect PancakeSwap with Metamask

Connecting PancakeSwap With MetaMask Wallet

Step 01

To connect PancakeSwap with metamask wallet I have to first of all add the metamask as a Chrome extension. Hence, I visit https://metamask.io/ and click on download now

On the next page I click on install metamask for Chrome

On the next page I click add to Chrome

Another page opens up and I click add extension

This successfully adds the metamask to my Chrome browser and on the new page I click get started

A new page opens up and requires me to either import a wallet or create a wallet. Since I already have a metamask wallet I click import wallet

I agree to the terms and conditions

On the new page I input my recovery phrase or seed phrase and confirm my password. Then I click import

I receive a message which says congratulations and I click all done to continue

Step 02

Now I have to set up the metamask wallet with the binance smart chain. I can decide to do this by setting it up either with the Binance smart chain testnet or the Binance smart chain mainnet. I intend to do the set up with the Binance smart chain mainnet.

From the place indicated by the arrow in the image below which displays Ethereum mainnet, I select to change this to the binance smart chain mainnet.

On the next page I select custom RPC

This opens a window for me to input the customer network I wish to operate on and I fill up data for the Binance smart chain mainnet as displayed below. These data can be gotten from the Binance tutorial.

After filling the data I clicked save and the new page below which shows that the smart chain has been connected, displays.

Step 03

I head over to pancakeswap.com and on the homepage I click on connect as displayed below

The metamask wallet that has been added to my Chrome extension opens up. I select the wallet account and click next

On the new page that shows up I click *connect

This successfully connects my metamask wallet account to the PancakeSwap exchange as indicated below:

Conclusion

Decentralized exchanges have come to stay. This is based on their incredible performance in the short time frame that they have popped up into the cryptocurrency scene and the widespread adoption and acceptance (even so much so that Uniswap is now listed as number 10 on coinmarketcap in terms of daily trading volume). On a daily basis their usage keeps skyrocketing. It is very important that these exchanges serve as a way or means of connecting crypto users and enthusiasts to the rest of the decentralized finance smart chains.

Hence, I do strongly believe that they will gain more strength over the years. Moreover, these decentralized exchanges are mostly non-custodial. This means that you can still operate your cryptocurrency wallet differently while equally trading and transacting or interacting with smart contracts over the exchanges. Some wallets such as the MetaMask Wallet and the Trust Wallet can be used to interact with these smart chains. I do hope to see a greater level of adoption of decentralized exchanges and a lot of other new ones once coming in with even more interesting features.