General information
PancakeSwap is a decentralized exchange service, or more simply, an exchange (DEX) operating on the Binance Smart Chain network, with many other features.
The main reason for the popularity of such platforms is their non-custodial nature.
This means that digital assets are stored with the user, and not on the balance of the platform until the exchange is made. Even if it is hacked, the user’s savings will not be affected.
Features of working on PancakeSwap:
• Liquidity pools filled by users themselves are used for trading. As a result, there is no usual book of orders for buying and selling coins, as in a centralized exchange.
• Commission for transactions is 0.2%. The user receives half, and the site receives the second.
• There are no restrictions or limits. You can immediately use the tools of the exchange.
• No need to create an account to work with the site. It is enough to connect one of the proposed wallets.
The liquidity pool — is a kind of “reservoir”. If a trader wants to exchange, say, his BTC for LTC, then the exchange will take BTC coins from the liquidity pool and transfer them to the trader, and LTC will go to another similar reservoir.
Thus, transactions occur as quickly as possible: the required assets are always freely available on the exchange.
In return, users receive LP tokens, which is a kind of “receipt” in the funds accepted from them, as liquidity providers on the exchange.
They are needed to receive additional income from the exchange (for trading commissions or farming).
Basic moments
To make any transactions on the Binance Smart Chain (BSC) network, you need to have a certain number of BNB coins in your wallet balance to pay network fees.
When using liquidity pools, a trading pair (a pair of two coins) is always used. They must also be on the balance of your wallet in the required amount.
Wallet connection
Go to the official website of the decentralized platform — pancakeswap.finance
In the upper right corner, click on the “Connect Wallet” button
Check that you have imported the $PAC token in your wallet.
Otherwise, use the method of adding a token on the Binance Smart Chain network according to our instructions (“Importing a token into MetaMask on the BSC network”)
Adding Liquidity to Trading Pairs
In the main menu of the site, select the menu items “Trade” -> “Liquidity”
You will see a list of your liquidity pools. To add new liquidity, click “Add liquidity” under the list of your pools.
- Select the tokens for which you need to pair and add liquidity.
The search works both by the name of the tokens and by the address of smart contracts (it will be useful if the token is not found in the general list of available tokens, for example, if it is new, as in the case of $PAC)
Contract address $PAC — 0xD722baC68242bc0b830667cD8999AE6DcDFAAC69
Next, set the price range within which trading (in general, on the entire site, and not personally by you), you will receive % of commission payments.
The wider it is, the lower the APR (annual interest rate of income), but at the same time, the number of coins to contribute to liquidity pools is also less.Next, select V3 LP — the size of the commission level. This is the part of the income in the form of LP tokens that you will receive as a reward for contributing funds to liquidity pools. (0.25% — officially recommended value)
Next, select the desired number of coins to be added to liquidity pools. In this example, we are considering the $PAC — $USDT trading pair.
Next, alternately click on the “Enable PAC” and “Enable USDT” buttons if they appear on the screen. Then, click on the “Add” button
Next, we confirm the addition of liquidity by clicking on the “Add” button and confirming it in your wallet.
Next, return to the page of liquidity pools by selecting the menu items “Trade” -> “Liquidity” in the main menu of the site
We can now see the newly added liquidity pool in the list. You can change the pool settings by clicking on it.
Adding liquidity to an already created pair
You can add liquidity to the liquidity pool you have already created.
To do this, enter the pool settings by clicking on it on the page “Trade” -> “Liquidity”
Next, click on the “Add” button
In the window that opens, select the desired number of coins.
Next, alternately click on the “Enable PAC” and “Enable USDT” buttons if they appear on the screen.
Then, click on the “Increase” button and confirm by clicking on this button again, in a new window.
Removing liquidity from trading pairs
You currently own PAC-USDT LP tokens, which confirms that the exchange has accepted your funds.
To return all invested funds and accumulated reward in the form of trading commissions, go to your liquidity pool that you want to delete and click on the “Remove” button
Enter the amount of liquidity to be deleted (refunded).
Then, confirm the deletion by clicking on the “Remove” button
And once again confirm the deletion by clicking on the “Remove” button and confirming the transaction in your wallet.
At this stage, everything, the liquidity pool has been deleted and has the status “Closed”, and all invested funds + rewards in the form of trading commissions have been credited to the connected wallet.
PAC-USDT LP tokens were also lost because You no longer provide liquidity to the exchange.
Useful links
Official PAC Man website
https://pacman.pw/
Bridge $PAC => BSC
https://bridgepacman.pw/
RU Telegram
https://t.me/PacmanCoinRU
Discord Server
https://discord.gg/JFwaENGDxy
DEX PancakeSwap
https://pancakeswap.finance/
The Official PancakeSwap Guide
https://docs.pancakeswap.finance/readme/v3-v2-migration/how-to-migrate