Crypto Academy / Season 3 / Week 3 - Trust wallet,Metamask,Uniswap & PancakeSwap,How to link Binance smart chain wallet to Binance Exchange- Part 2
Introduction
It's a great privilege to be here again for quality cryptocurrency lectures at the academy where our seasoned crypto professors are committed to presenting great lectures, I appreciate their efforts so much for the work-done. This week has been a great learning week as usual and this time, I've attended the lecture presented by professor @yousafharoonkhan as he proceeded on the DeFi world having some decentralized exchanges on the list. I will be using this piece to attend to the task given by the professor.
Overview of DeFi (Decentralized Finance) System
It is important to remind ourselves a bit about DeFi which simply means the Decentralized finance where there is independence of transactions. This innovation has taken the crypto ecosystem to another greater height whereby users can easily make transactions of choice (Buy/Sell, Swap/Exchange, Stake, Provide Liquidity and so on) at a very convenient environment without the involvement of third parties.
.jpeg)
Image source
Decentralized finance being a path to independence of transactions allow users to make different transactions of choice using the Decentralized Exchanges to make investments in the crypto ecosystem without the involvement of intermediaries or third parties and no central authority, in short, activities of choice are controlled by individual users. Let's go into the task proper.
1. What is Liquidity in PancakeSwap?
To talk of liquidity in PancakeSwap, we would need to talk briefly talk about liquidity meaning in the crypto ecosystem. Liquidity generally in the crypto ecosystem is the characteristics of cryptos to be easily exchanged to another crypto of choice or Fiat, now, Liquidity in PancakeSwap is the assets in the liquidity pool that is used to process transactions and this is where AMM (Automated Market Maker) comes in, a technology used in PancakeSwap to quote prices thereby utilizing the liquidity provided in the pool. This technology is used in other Decentralized exchanges as well.
With the existence of liquidity pool in PancakeSwap, it enhances liquidity of assets by utilizing the liquidity provided in the pool which are supplied by Liquidity Providers and as such, the liquidity providers earn passive income from exchange fees on PancakeSwap. Liquidity in PancakeSwap uses full decentralization to quote prices automatically, thereby allowing users to easily transact and also allows liquidity providers to earn passive income.
Examples of Liquidity in PancakeSwap
Liquidity is PancakeSwap is done in pairs, which means you are choosing two assets and supply into the liquidity pool at 50%/50% basis. For instance, if I intend to provide liquidity in the PancakeSwap liquidity pool for BUSD and CAKE, if the BUSD is worth $10 then the equivalent CAKE would be $10 and that satisfies the 50%/50% basis. Going further, if I intend to provide liquidity on PancakeSwap with BNB and BAKE, if my BNB is $25 then the equivalent of BAKE would be $25, also, this satisfies the 50%/50% supply as well.
How to Provide Liquidity on PancakeSwap
I will be giving a list of the steps that is involved in adding liquidity on PancakeSwap. Let's see the steps below.
My supply in the CAKE-BNB Liquidity Pool
The steps above completes the process of adding liquidity in PancakeSwap and the Transaction Hash is; 0xe976cce55e4040aa2fac9a7aa8a6c235979f6344cb931cd6506e8177ea95f236.
2. How to connect Binance exchange account with Binance Smart Chain?
For this section of the task, I will be connecting my Binance exchange account with my Binance Smart Chain wallet. The steps involved would be given in the list below.
Unlock
Wallet Direct
Verify and connect my address
Log in
I understand
Connect to wallet
Sign with wallet
Bind
My Binance exchange connected
My Binance exchange balance
How to Transfer from Binance Exchange to Binance Smart Chain wallet
Copy address
Successful transaction
Transaction received
Transaction details
The above steps completes the process of transferring a coin of choice from the Binance exchange to the Binance Smart Chain. The Binance Smart Chain wallet's address used is; 0x7f4488C5f1d2793cf3B405B5650cCA4342e37f57 and the transaction Hash is; 0x4055296cd32f4bb82c7c5c7021ef6b7f3a184f2abb7284bfe38143515ddda437.
3. What is the difference between Trust Wallet and Metamask and which of them is better and why?
To proceed in this section, it's important to consider the similarities of both Trust Wallet and Metamask. Trust wallet and Metamask are both crypto wallets that allow users to store/send/receive their crypto assets and the technology employed in these wallets is decentralization whereby users have the full control of their assets having the Private Keys/Mnemonic key to their wallets and that keeps one in charge.
In addition, Trust Wallet and Metamask fall under the category of web 3.0 wallets with the incorporation of dApps that can be used to interact with other dApps to perform transactions like; buying/selling, swapping/exchanging, providing liquidity, staking and so on. All these done without the involvement of an intermediary. Remember, the Private keys/Mnemonic key of these assets are to be kept safe and not to be revealed to anyone. Let's see the differences in a tabular form below.
Differences between Trust Wallet and Metamask
| Trust Wallet | Metamask |
|---|---|
| Trust Wallet is associated with Binance Smart Chain | Metamask is associated with Ethereum blockchain |
| Trust Wallet is only available on mobile devices | Metamask can be used in mobile devices and on desktop/PC using the wallet's extension |
| Transactions done on Trust Wallet are economical as compared to Metamask | Metamask is characterized with high transaction fee (high gas fee characteristics of the Ethereum blockchain) |
| There is no quick custom token for easy adding of tokens until you search and add token | There is the presence of the custom token button on the interface that enhances quick adding of tokens |
| Transactions on Trust Wallet are faster as compared to Metamask | Transactions on Metasmask are not as fast as the counterpart Trust Wallet. |
Which one is better and Why? - Trust Wallet or Metamask
Fees: Making transactions in the crypto ecosystem should be cost-effective in addition to swiftness of transaction, as such, I prefer Trust Wallet over Metamask because of lower transaction fees.
Compatibility: Trust Wallet is only compatible with mobile devices like Android and IOS while Metamask supports mobile devices like Android and IOS and as well have extensions for Chrome, Firefox and so on. In terms of compatibility, I will choose Metamask over Trust Wallet as I can easily use it on my desktop/PC.
4. What is meant by PancakeSwap and Uniswap?
PancakeSwap is a decentralized exchange that allow users to trade their crypto assets by swapping it to a coin of choice. In addition, PancakeSwap is deployed on the Binance Smart Chain network and as such enables users to transact without the involvement of third parties in the transaction. Quoting of prices on PancakeSwap is done through the AMM (Automated Market maker) such that users can transact independently through Smart Contracts code that was written for the purpose.
Uniswap is also a decentralized exchange utilized by users to buy/sell, swap/exchange their crypto assets independently at any time of choice. It is important to know that Uniswap is deployed on the Ethereum blockchain and used for swapping of ERC20 tokens of choice utilizing the funds in the liquidity pool to quote prices and ensure smooth running of transactions (buy/sell or swap/exchange) on the exchange. Users only need to connect their supported wallet to it and start swapping crypto assets of choice. Also, note that, AMM is also the technology used to quote prices on Uniswap as well.
Both PancakeSwap and Uniswap are decentralized exchanges that offers independence of transactions without the involvement of third parties and as such utilizes AMM (Automated Market Maker) to quote prices on the exchange for swift running.
PancakeSwap features
Uniswap features
For this section, I am using the Metamask wallet to access PancakeSwap DEX through the dApp. I launched the Metamask wallet and selected browser from the left options.
On the dApp interface, I inputted pancakeswap.finance/ to visit. Screenshots below.
Now on the PancakeSwap page, I selected Connect on the top of the page and clicked Metamask from the list of the wallets. See screenshots below.
After selecting Metamask, I clicked on Connect and clicked Approve to add a new network on the next interface. See the screenshots below.
Now, I have successfully connected PancakeSwap to Metamask wallet.
PancakeSwap connected to Metamask
Cc: @yousafharoonkhan
Differences between PancakeSwap and Uniswap
| PancakeSwap | Uniswap |
|---|---|
| PancakeSwap is deployed on the Binance Smart Chain | Uniswap is deployed on the Ethereum blockchain |
| Exchange fees on PancakeSwap is very low and we can say, it's economical | Exchange fees on Uniswap is higher as compared to PancakeSwap |
| Lesser availability of tokens and trading pairs | Higher availability of tokens and trading pairs as compared to PancakeSwap |
| Availability of Yield farming | No yield farming as users are only left to make passive income from adding liquidity into the Liquidity pool. |
Features of PancakeSwap
Some of the key features of PancakeSwap are; Trade (Exchange and liquidity), Farms, Pools, Prediction, Lottery, NFT, Teams battle, Teams and Profile, and so on. Let's discuss them below.
PancakeSwap features
Exchange: Exchange is a section on PancakeSwap where users can perform swap, that is swapping of their assets to any other coin of choice.
Liquidity: Liquidity on PancakeSwap is another feature that allow users to provide liquidity thereby making them liquidity providers and as such, earn passive income from exchange fees. The liquidity provided are used by the Automated Market Maker to quote prices on the decentralized exchange.
Farms: Farms is another option of earning in PancakeSwap that enable users to stake their assets over a period to earn another assets.
Pool: Users can stake their assets into a pool of choice on PancakeSwap to earn passive income which makes the assets staked more useful than keeping it idle in the wallet.
Prediction: In this case, users can predict the next price movement of an asset on PancakeSwap and if it goes right, then they earn. This is quite another great way to make money on PancakeSwap.
Lottery: In this section, users can buy tickets to participate in a lottery and if a user end up being lucky to be selected then they earn which is quite interesting.
NFT: These are Non fungible tokens which is still under development on PancakeSwap such that users can get their digital assets tokenized and listed to preserve value for the asset.
Teams and Profile: This section contains the teams available on PancakeSwap and their profiles. We also have the team battles where teams competes for certain prize and this makes it more interesting.
Features of Uniswap
We have the major features of Uniswap to be; Swap, Pool and Vote. Let's discuss them below.
Uniswap features
Swap: This a very important feature of Uniswap where users can easily swap Ethereum blockchain-based tokens for one another and fully decentralized. The user selects the coin they willing to swap and the destination coin to complete the transaction process.
Pool: This is a section for liquidity providers to supply their assets into the liquidity pool and earn passive income from exchange fees as their assets are used to complete transactions on the Uniswap exchange.
Vote: The governance on Uniswap is done by UNI holders (UNI is the native token of Uniswap). As such, UNI holders have power to vote to effect a development on Uniswap and the power to vote depends on the stake they possess (amount of UNI tokens they are holding).
Which one is better and Why? - PancakeSwap or Uniswap
I will be discussing this section under three headings; Fees, Trading Volume and Earning features.
Fees: The cost of transaction on PancakeSwap is cheaper as compared to Uniswap, so in terms of fees, PancakeSwap is better than Uniswap.
Trading Volume: Considering the trading volume, Uniswap has higher numbers of tokens and trading pairs as compared to PancakeSwap which enable users to select from numerous tokens and easily swap them. In terms of trading volume, Uniswap is better than PancakeSwap.
Earning features: PancakeSwap has more earning features than Uniswap and examples are; farms, prediction, lottery, and the likes on PancakeSwap which is missing in Uniswap. So considering more earning features, PancakeSwap is better than Uniswap.
5. How to connect PancakeSwap with Metamask
PancakeSwap connected to Metamask
Conclusion
In conclusion, DeFi (Decentralized finance) is shaping our crypto ecosystem to allow independence of transactions that involves no intermediaries at all where transactions are done on the decentralized exchanges at a very speedy rate.
PancakeSwap and Uniswap are some of the popular decentralized exchanges with the former deployed on the Binance Smart Chain network and the latter deployed on the Ethereum blockchain to carry out transactions of choice. PancakeSwap is quite economical with low transaction fee as compared to Uniswap. Thanks to professor @yousafharoonkhan for this great lecture. Thank you all.
Cc: @yousafharoonkhan
Written by;
@fredquantum
Respected first thank you very much for taking interest in SteemitCryptoAcademy
Season 3 | intermediate course class week 3
thank you very much for taking participate in this class
Thanks for the review professor @yousafharoonkhan.