Launched on 1 September 2020, Binance Smart Chain (BSC) had time to make itself as a cross-compatible with Binance Chain blockchain, which enables its users to build BSC-based DApps and create assets while ensuring fast transaction processing speeds and significantly low transaction fees (according to some analytics the fees on BSC are 97% cheaper than on Ethereum 1.0).
One of the most popular DEXs built on BSC is PancakeSwap. PancakeSwap is a platform for exchanging BEP-20 tokens and earning these tokens by providing liquidity to the pools (yield farming).
The easiest way to interact with PancakeSwap is by using Binance’s Trust Wallet. But if you do not like to involve a mobile phone in your financial adventures, there are some solutions.
The BSC architecture supports a wide range of tools built on Ethereum, and thus users can use MetaMask wallet to interact with PancakeSwap and other BSC-based DApps. By default MetaMask is designed for the Ethereum blockchain, so you need to connect it to BSC by setting up an BSC network in MetaMask’s Settings. For more details, you may read the Binance tutorial.
Now, you need to deposit some crypto assets into your MetaMask account to start farming or staking on PancakeSwap. For this purpose, it seems more convenient to choose BNBs, as further you can swap them on BEP-20 tokens on PancakeSwap, besides BNB is needed to pay transaction fees on BSC.
Below there are three ways to bring your BNB to BSC, and therefore to PancakeSwap, using MetaMask.
1) Binance
Purchase BNBs on Binance and withdraw them from Binance to BSC. On a “withdraw” page of Binance for “Transfer network” select Binance Smart Chain BEP-20 and for “Recipient’s BNB Address” insert your MetaMask address (in the BSC network).
2) Other Crypto Exchanges
If you do not have an account on Binance or prefer to swap your funds directly from your wallet, you can exchange available crypto assets for BNB via many other crypto exchange platforms. And there might be a little wrinkle with that. Exchanges like SimpleSwap, Changelly, etc., cannot send your BNB directly to your BSC account in MetaMask, as they are interoperable with Binance Chain, but not with BSC. Namely, a recipient’s address for BNB should be in a wallet working on Binance Chain (this address begins with “bnb…”, while BSC address begins with “0x…”). So, to swap, you need a ‘bridge’ like Binance Chain Wallet. Using this wallet, you can perform cross-chain transfers between both of Binance’s blockchains. You can withdraw your BNB bought on a crypto exchange into your account in Binance Chain; then from there, it is possible to transfer this BNB to your BSC account in MetaMask.
3) Binance Bridge
Binance Bridge enables its users to bring tokens to Binance Chain and BSC from the Ethereum network. In order to use it, connect your MetaMask wallet (Ethereum network) with Binance Bridge. You can swap your ETH or USDT (or some other assets) to the equivalent of pegged tokens on Binance Chain or BSC and transfer them to your BSC account in MetaMask.
Finally, having deposited funds on BSC, you can get started with PancakeSwap by connecting PancakeSwap with your MetaMask wallet, while selecting the BSC network on MetaMask.
PancakeSwap offers similar features as Uniswap does (and even more: e.g., Lottery and NFT), while also leveraging such advantages of BSC as faster processing speeds and much lower network fees, which make it affordable for many traders to participate. The interface of PancakeSwap is very user-friendly, with elements of gamification heightening users’ interest.
Having been launched several months ago, PancakeSwap has already considerable liquidity and volume ($143 million in liquidity and a 24-hour trading volume of $39 million at the time of this writing). It is still far from today’s volume of Uniswap. However, the team behind the project seems to have ambitious plans. According to PancakeSwap’s Roadmap (or as they alternately call it “to-do list”), amongst their goals are lending and borrowing, trading BEP-20 tokens with leverage, binary options, etc.
The team is also pioneering NFTs on BSC, a developing area, interest in which is constantly growing on the part of the crypto community. At present, PancakeSwap completed the first phase, having incentivized its users by random distribution among them NFTs, which could be further sold or stored. The next steps include building an NFT ecosystem, enabling users of the platform to mint and trade NFTs.
Disclaimer: The information contained in this article is for informational purposes only, and is not intended as, and shall not be understood or construed as, financial or legal advice. It is very important to do your own analysis or to consult a qualified financial advisor before making any investment. The author is not affiliated with any project mentioned in this article.
