Liquid Staking: Unlocking the Potential of Staked Tokens
Liquid staking enables token holders to unlock the value of their staked assets without waiting for the staking period to end.
The following guide will help users understand how to connect their MetaMask wallet to the decentralized exchange - PancakeSwap. The article will provide a short review of what PancakeSwap really is and why it can benefit users who choose to process their crypto assets through PancakeSwap's DEX. Lastly, a short 3-step guide will explain how to easily connect MetaMask to PancakeSwap following two simple methods – automatically and manually. If you are reading this article and you are still unaware of what MetaMask is, then please check out one of our previous blog posts on how MetaMask wallet works.
In short ,PancakeSwap is a decentralized exchange built on the Binance Smart Chain, a fast and inexpensive alternative to Ethereum. Similar to the celebrated Uniswap DeFi AMM protocol running on Ethereum, PancakeSwap allows users to swap between cryptocurrency digital assets by tapping into user-generated liquidity pools.
PancakeSwap allows users to trade, earn and win. Trade is quick and efficient as there are no KYC-related procedures enabled. You can simply start swapping or trading tokens without the heavy verification processes. Currently, PancakeSwap is the leading decentralized exchange on Binance Smart Chain, with the highest trading volumes in the market. Being on the Binance Smart Chain, PancakeSwap provides users with much lower transaction costs than Ethereum or Bitcoin. In addition to that, users are the sole owners of their crypto assets as PancakeSwap is a decentralized exchange. Therefore, funds will not remain in third-party providers or centralized exchanges such as Coinbase.
Earning with PancakeSwap is also a benefit to consider. Tokens can be earned with Syrup Pools which can then be staked. After that, token-holders can earn additional tokens and rewards each week. Moreover, even if a trading pair isn’t supported on the Farms page, users can still earn trading fees when they stake their tokens in Liquidity Pools (LPs).
Lastly, PancakeSwap allows its users to win while participating. The DEX holds lotteries such as the PancakeSwap Lottery and there are daily prizes which can be won. In addition, users can win collectible NFTs by particaping in trading competitions. Also, users can buy and sell NFTs on the in-app NFT Marketplace.
We cannot discuss PancakeSwap without mentioning the main rival and biggest competitor - Uniswap based on the Ethereum blockchain.
Uniswap, event though is more established and older in general, it is also burdened by the recent stagnation in the Ethereum network. Ethereum fees are as high as ever and they continue to rise up on a daily basis whereas Ethereum 2.0 is still looking far away in the future. As such, PancakeSwap does not have these problems and its fees are more desirable with the 0.2% for users who participate in their LPs (Liquidity Pools). To add information, the fees are not paid in $ETH.
One of the best characteristics of the Binance smart chain is liquidity. PancakeSwap is praised with the largest number of daily users of any dApp, and has one of the highest market volumes. Also, it has a sizeable wallet integration and supports popular wallets such as WalletConnect, MathWallet, TokenPocket, TrustWallet, and of course MetaMask wallet.
$CAKE has very high daily tradeable volume. As a result, this is good news for any investor looking for a token to stake. Not only that, but it is very easy to get in and out of Cake which cannot exactly be valid for most of its competitors and other tokens.
Staking $CAKE on PancakeSwap offers many benefits over traditional yield farming. Mainly, all of the platform's staking options provide an extremely high return, and they are not traditional liquidity pools. That said, when one participates in yield farming, there are a number of specific risks to be aware of. Investors are exposed to what is called "impermanent loss," where if the price of an asset rises or falls, one's profits can be lower than they would have been had those assets simply been held in a cold wallet. Staking does not incur this form of risk.
Users can benefit from arguably one of the best wallets for storing digital crypto assets users can find the best transaction prices every time. The MetaMask wallet secures prices from different aggregators and markets in order to remain consistent with its 0.875% service fee.
The importance of connecting the wallet to PancakeSwap is also related to slippage protection. Large swaps are usually associated with swift price changes whenever there is not enough liquidity available on a specific decentralized exchange. Therefore, swapping tokens with MetaMask is an automated process which allows user orders to be spread across all DEXs in order to reduce the impact of slippage.
The following short guide will explain how to easily connect PancakeSwap tothe Ethereum wallet – MetaMask, by following three simple steps.
Initially, users must be registered with MetaMask and have the browser extension enabled. If a user is not registered to MetaMask, then this can be achieved by installing the MetaMask wallet from their website.
Alternatively, users can visit the browser extension marketplace and download the MetaMask extension which will achieve an identical result.
The next step is to create a MetaMask wallet or to import an existing one by using the browser extension feature.
After the previous steps have been completed, in order continue the and set up MetaMask with PancakeSwap, users have to either complete this process automatically or they can add a custom RPC network manually.
Currently, this is the easiest and most efficient method to to your MetaMask wallet. All you have to do is visit the homepage at https://pancakeswap.finance/ and if you have MetaMask already set-up, then their website will prompt you to connect your wallet by clicking on the button located at the top-right corner of your screen labelled Connect Wallet.
Ultimately, a new Notification page will open from your browser extension and will ask you to confirm your details in order to proceed forward. After that, confirming details and continuing forward you will now have successfully connected your MetaMask wallet to PancakeSwap.
To accomplish this, users have to open up the browser MetaMask extension and to select the Network button titled Ethereum Mainnet which will open a drop down menu.
The dropdown menu where Custom RPC must be selected should resemble the image below:
From there, users have to navigate and click on the Custom RPC option will prompt them to input data. The data includes: network name, new RPC URL, chain ID, currency symbol and block explorer.
Users can enter the following PancakeSwap network input data below:
Network Name: Binance Smart Chain
New RPC URL: https://bsc-dataseed.binance.org/
Chain Id: 56
Currency Symbol: BNB
Block Explorer URL :https://bscscan.com
Once users have completed the correct data input and have clicked on Save, then they will be able to switch to a different from the application’s dropdown list in the future. As a result, MetaMask and PancakeSwap will be successfully linked. Here is an image of the correctly completed custom RPC:
After completing all steps accordingly, your Ethereum wallet should be successfully connected to PancakeSwap network. If you enjoyed reading this article, please visit our Blog page or if you would like to learn more about the services our company offers, then definitely check out the Services page.