Intro
Food-themed DeFi projects are becoming increasingly popular in the crypto space. The food seems to be a new trend, similar to the Shiba Inu craze. Most food-themed decentralized applications are launched on Binance Smart Chain since this network is famous for its speed and low fees, which allows users to receive tasty rewards. This article will analyze two top DEXs launched on BSC — PancakeSwap and BakerySwap.
What Is PancakeSwap?
PancakeSwap is a decentralized exchange operating on the Binance Smart Chain network. As part of the PancakeSwap, traders can exchange any BEP-20 tokens quickly and with a minimum fee. The exchange does not require registration, and its users are not obliged to have a personal account. To use the exchange, it is enough for the user to connect the wallet with the dapp. PancakeSwap works based on an automated market maker (AMM) instead of the usual CEX order books. AMM relies on liquidity pools and providers rather than buyers and sellers like traditional exchanges. Liquidity providers add liquidity to pools and are rewarded with liquidity tokens (LPs) reflecting their share in the pool. They receive a portion of the pool’s trading fees for their support.
In addition to the standard token swap, users can also place a limit order and trade at a set price.
To date, the platform supports the following operations:
- sale and purchase of tokens;
- depositing tokens into liquidity pools;
- token farming;
- token staking;
- prediction cards;
- lottery;
- buying and selling BSC-based NFTs.
Periodically, contests and trader competitions are held on PancakeSwap.
What Is BakerySwap?
As well as PancakeSwap, BakerySwap is one of the most popular DEX launched on the Binance Smart Chain. BakerySwap utilizes the AMM model, which allows traders to trade against the liquidity pool. Users who supply liquidity to pools receive BLP (Bakery Liquidity Tokens) that can be used in farming pools. For providing liquidity, users receive a portion of the trading fees generated by the pool. Since the BakerySwap works according to the AMM model, users do not need to go through the KYC process, and transactions are made instantly.
To date, BakerySwap supports the following operations:
- trading BEP-20 tokens;
- supply of liquidity;
- farming of liquidity tokens;
- token staking;
- NFT staking;
- NFT marketplace;
- gallery of top talented NFT artists;
- IDO launchpad;
- a gaming platform for earning NFTs.
PancakeSwap VS BakerySwap
Naturally, comparing PancakeSwap and BakerySwap, the user can immediately note that the first platform is many times more popular, has more users, and therefore has more liquidity. As for the interface, again, the more popular DEX wins. The PancakeSwap interface is more understandable for beginners in the crypto field and is more informative and structured. As for service fees, BakerySwap charges 0.30% of each swap, while PancakeSwap traders pay 0.25% for each trade.
As already mentioned, both exchanges receive support from liquidity providers. In return, liquidity providers receive liquidity tokens. In addition, liquidity providers receive a portion of the trading fees generated by the pools. And here, the situation is more favorable for BakerySwap liquidity providers. They receive 0.25% of trading fees, while the liquidity providers on PancakeSwap receive a 0.17% trading fee reward. Also, liquidity providers can put their tokens in farming pools for additional earnings. In the “Earn/Earning” section on both exchanges, users have access to various pools that allow both liquidity providers and ordinary users to earn money.
PancakeSwap Farming
PancakeSwap has about 90 farming pools that allow liquidity providers to profitably stake their LP tokens. For example, the most popular farming pool CAKE-BNB LP allows providers to receive approximately 21.66% APR. For users’ convenience, the developers have implemented a calculator with which you can easily calculate your ROI depending on the amount of staked tokens, the lock period, as well as the frequency of compounding. In addition, PancakeSwap allows all users to stake CAKE tokens in Syrup Pools.
BakerySwap Farming
There are 17 pools available on BakerySvap, within which users can deposit their LP tokens to earn BAKE or just deposit BAKE and even NFTs to earn more BAKE. For example, the “Bread” pool allows exchange users to add BAKE tokens to the staking pool and get 0.84% ROI. And Car Collection NFT owners can stake their tokens and receive 5.33% ROI in BAKE tokens. Furthermore, in the “Earn Others” section, traders can deposit tokens of partner projects into staking pools to earn more of the same tokens, for example, stake TOKAU to earn more TOKAU. Finally, in the “NFT” section, NFTs staking is available to traders. Depending on the pool, different conditions are offered. For example, stake ALICE tokens to earn ALICE NFT or deposit GENESIS NFT to earn BMON tokens.
PancakeSwap VS BakerySwap: NFT Marketplaces
Both exchanges are famous for their NFT Marketplaces, where users can sell and buy various digital artworks. PancakeSwap has a huge gallery of NFT collections from renowned artists and home-raised NFT collections. For example, the collection of Pancake Bunnies consists of more than 900 thousand items, the minimum price of which is 0.009 BNB. On the Marketplace, users can track the newest collections, the hottest collections, as well as recently added NFTs. NFTs on PancakeSwap have good liquidity so for example, 3D Brave Tigers #9390 NFT was added on 06.07.2022, 12:38. A few hours later, NFT had already changed its owner and was put up for resale.
As for BakerySwap NFT Marketplace, the platform is a people’s market. Anyone can create NFT and put it up for sale. There are many meme-themed NFTs (Safepal Meme or Musk&Doge), various NFT artworks, pictures, and NFT photos of users and their pets. There are cases when users create an NFT for fundraising, the funds from which are directed to various charitable purposes. In the “Partners Stores” section, NFT collections of more famous projects are available to users, for example, the KAKA NFT collection with superhero cards, Tokocrypto NFTs, Binance NFTs, and others. For more straightforward navigation, the developers have created a separate “Game Assets” tab where users can purchase NFTs in various games. It can be Alchemy.Toys NFT cards, Binamon NFTs, Rare Cars NFTs, and others.
Other Features of PancakeSwap
- Lottery
There are two other products worth mentioning on the PancakeSwap exchange. The first is a lottery. The user can buy a ticket with a six-digit number and, if the numbers match, takes a certain part of the “bank.”
- Prediction Cards
The second product is “Predictions.” In fact, it is a futures contract disguised as a game. The user can assume that some asset will rise in price or its price will decrease. Every 5 minutes, the cards are updated, and those who won and lost appear.
Various competitions for traders are also held periodically. At the time of writing, there are no active competitions. From the latter, a Dalarnia Trading Competition was held. Traders were offered to unite in teams and trade some pairs to increase their rank. As a reward, $120,000 was distributed in CAKE and DAR tokens, as well as prize NFTs.
Other Features of BakerySwap
- Launchpad
BakerySwap is the first AMM+NFT DEX launched on the Binance Smart Chain. Therefore, it is unsurprising that many of the exchange’s services are tailored to NFT projects and their users. In addition to trading and NFTs staking, users can use BakerySwap to conduct IDO on the exchange’s internal launchpad. Users must apply and specify information about the project, the official website, the token name, symbol and supply, and other data to run an IDO. There are several tokens to choose from that can be used to raise funds, for example, BNB, BUSD, USDT, BAKE, or others.
- Gamification
In this section, users can receive gaming NFT as a reward. In addition, some NFT can be redeemed for real-world items. For example, Soccer NFTs could be redeemed for real-world soccer balls, and CAR NFTs reward three lucky real-world exclusive cars.
Also, in this section are presented NFT Combo Meals. Users can deposit BAKE tokens to compose their combo and receive more staking rewards and farm earnings. The more BAKE you deposit, the higher your combo tier, and therefore the higher the reward. Also, the lucky ones can hit the jackpot and get a combo with a higher staking power for a small cost. Finally, you can stake your combo and sell it on the BakerySwap Marketplace.
- Bakery Gallery
Bakery Gallery is a specialized platform for top NFT artists. The gallery exhibits works by artists such as SWOG, KoralCorp, Chiara Magni, and others. In addition to the purchase, mystery boxes are available to users with the possibility of obtaining valuable NFT.
Final Thoughts
After analyzing two popular DEXs on Binance Smart Chain, we can logically conclude that PancakeSwap still wins in terms of trading. This exchange has more liquidity and is in the top 5 most popular DEX, against the 66th place occupied by BakerySwap. BakerySwap may be able to catch up with a competitor, but for this, they need to reconsider their marketing strategy and communicate more with their users on social media. For the most part, the success of DEX is built by the users who support the platform and supply liquidity. However, what PancakeSwap is inferior to BakerySwap is in NFTs. BakerySwap allows you to stake, buy, earn NFTs and conduct IDOs.