What Is PancakeSwap and How Does It Work?

PancakeSwap is a decentralized exchange (DEX) built on the BNB Chain. It allows users to trade cryptocurrencies in a decentralized manner without the need for a central authority or intermediary. Users can trade cryptocurrencies on PancakeSwap using the Binance Coin (BNB), CAKE, BUSD, or other cryptocurrencies as the base currency. The platform utilizes an automated market maker (AMM) model, which uses liquidity pools to determine the prices of the traded assets. To trade on PancakeSwap, users must first connect their…