Dear Steemians,
Thanks to Professor @yousafharoonkhan for giving us this great lecture on Trust Wallet, Metamask, Uniswap & PancakeSwap, and linking Binance smart chain wallet to Binance Exchange. After going through the notes and researching this week's topic, I have decided to review what I have learned in my homework task.
What is Liquidity in PancakeSwap Explain with examples? and add Liquidity in PancakeSwap and explain all the steps with a screenshot. (explain in your own words)
PancakeSwap is a decentralized Finance in the cryptocurrency ecosystem that allows people to make transactions without any third-party platform. These Transactions can be the choice of Buy, sell Swap, Exchange, Stake, or Provide Liquidity and many other features.
Like many other Defi platforms, PancakeSwap also provides a liquidity feature for the exchange of digital assets. Defi comes with a feature known as liquidity pool that serves as a wallet or a means of exchange platform where users can trade digital assets. Users can use the liquidity pool to transact their assets; this transaction or trade comes with a fee that the user has to pay. Likewise, users can also provide Liquidity to the pool and accrued profits.
For example, for someone to provide Liquidity for the pair BTC/USDT trading pair on the PancakeSwap exchange platform, the equal value of both BTC and USDT should be provided to contribute to the liquidity pool. 50%/50% of the asset pair should be provided; if I am providing $15 for BTC, I have to provide the same $15 for USDT. This Liquidity earns the user some rewards.
How to Provide Liquidity on PancakeSwap
MetaMask, TrustWallet, TokenPocket are some of the wallets are needed to provide Liquidity on the PancakeSwap exchange,
I'm using Binance Smart Chain to connect to the PancakeSwap exchange. I will prefer the BNB/BUSD trading pair to provide Liquidity.
- I am logging in https://pancakeswap.finance/.
- Locate "Trade" on the left and click on 'Liquidity". But before you do any transactions, you have first to connect your wallet. In this case, I have connected my Binance smart chain wallet.
- Click on "Add Liquidity".
- I will choose BNB/BUSD pair; I will then enter the amount. After that, I will click "Unluck Wallet".
- Click to approve USDT.
- click on 'Supply'.
- Click on Confirm Supply, and validate the transaction.
- As shown below, I added $0.0173836 worth of BNB and USDT.
2). How to connect Binance exchange account with Binance smart chain or trust wallet. Explain all the steps through a screenshot. And transfer any coin from Binance exchange to Binance smart chain.
Follow to steps below to connect the Binance exchange account with Binance smart chain or trust wallet. I will connect with Binance smart chain,
- First login to your Binance smart chain wallet to unlock it.
- Locate and click on "Wallet Direct"
- Locate your Binance account "Verify and Connect my address" and click on it.
- Click on 'Connect to wallet'.
- Click on "Connect."
- Sign in to verify your account ownership.
- Click on "Bind" to finalize the procedure.
- Confirm your Email and phone number.
- Binance chain wallet has been successfully connected to the Binance stock exchange account.
Transfering BNB from Binance exchange to Binance Chain Wallet
- First, log in to my Binance Smart Chain wallet.
- Click the marked part to copy BSC walled address.
- I will go to my Binance exchange account and locate BNB and click on withdraw.
- I will then input my address. I will receive 0.02738389 BNB with a 0.0005 BNB network fee.
- Verify my email and phone number
- Withdrawal submitted
- BNB is successfully withdrawn.
The aaddress used is: 0x00Be991EADadFB8131A5Fe8335186AF725DAc25B
3). What is the difference between Trust Wallet and Metamask, and which of them is better and why? Explain in your own words.
Even though both Trust wallet and Metamask have the most common, I will explain some below. They also have some differences.
< centre>Similarities between Trust wallet and Metamask
Both wallets makes it possible for users to transact, store their digital assets.
Both use a decentralized system for operations. This gives users full control over their assets.
Both are under web 3.0 wallets; this makes it easy to access them using DApps.
They both need Private keys or Mnemonic keys to access the assets or make transactions.
< centre>Differences between Trust wallet and Metamask
| Trust Wallet | Metamask |
|---|---|
| Trust Wallet works on the Binance Smart Chain network | Metamask also works on the Ethereum blockchain |
| It can only be found on mobile devices such as android | It is available on both pc and mobile devices. |
| Has low Transactions fees as compared to Metamask | Metamask has high transaction fees this is due to the high gas fees on the Ethereum blockchain |
| No easy Custom token for adding | custom token can easily be added at the interface. |
| Known to have faster transaction rates than Metamask | Has slow Transactions rate compared to Trust Wallet. |
Both wallets perform similar functions, but they also have differences that make one better than the other. From the differences listed above, we can see that Trust Wallet has a greater advantage over Metamask.
Even though TRust wallet only supports mobile devices, which is a big challenge but I hope with time, the pc and other platforms will be made available.
4. What is meant by PancakeSwap and Uniswap?
Pancakeswap
Pancakeswap is a decentralized exchange platform that was launched in 2020. It was initially used as Automated Market Marker, allowing users to buy or sell any digital assets. This platform uses both Binance Smartt Chain Network the Ethereum network to make transactions. Mostly transactions fees are lower, and assets are secured since transactions are based on smart contracts.Uniswap
Uniswap is similar to Panckaeswap, which is also a decentralized exchange. It has many features which users can explore; these features inv=clude the option to buy/sell, swap/exchange digital assets without the need of any third party. Uniswap was built on the Ethereum blockchain, which is used for the trading of ERC20 tokens. Just like Pancakeswap, Uniswap also uses AMM technology for price quotes.
PancakeSwap and Uniswap are two decentralized exchanges that offer convenience in trading digital assets. They both operate without the need for any third-party platforms.
| PancakeSwap | Uniswap |
|---|---|
| PancakeSwap works on the Binance Smart Chain | Uniswap works on the Ethereum blockchain |
| Has low Exchange fees | High Exchange fees as compared to PancakeSwap |
| Few tokens and trading pairs | More tokens and trading pairs as compared to PancakeSwap |
| Has the "Yield Farming" for users to make passive income | Has No " Yield farming" for uses to explore. |
Below are some of the features of Pancakeswap,
Exchange
This feature allows traders to swap assets. Thus, swap their assets to different assets.Liquidity
This also allows traders to Provide Liquidity to Liquidity pools; this allows them to earn rewards from exchange fees.Farms
With this feature, traders can stake their assets for some period of time in other to gain rewards. These rewards can be in a different asset from the staked asset.Pool
Pools give users the chance to stake their assets into a pool; this is one of the ways to earn passive income on your assets.Predictions
This is when users predict the next movement of the price of a digital asset in the crypto market. When the price change goes as predicted, then there s a win, but when it goes sideways, then there is a loss.Lottery
This feature allows users to buy tickets in the other partake lottery games. If the ticket is lucky enough to win, then the user is rewarded; likewise, there can be a loser.NFT
Non Fungible Tokens feature makes it possible for users' assets to be tokenized and listed in other to preserve their value. These NFTs are unique to the identity of the owner.
Just like Pancakeswap, Uniswap also has some features, some of them are,
Swap
This feature is an important part of the exchange. Ethereum blockchain-based tokens are swapped using this feature.Pool
The pool feature allows users to provide Liquidity to the liquidity pool and gain some rewards from exchange fees since their assets are for the completion of transactions on the platform.Vote
This feature allows UNI holders to vote on some issues regarding uniswap development and other matters relating to uniswap. The higher the UNI, the greater the vote influence.
**Which one is better **
As to which is better depends on the trader, what the trader wants to do. But personally, Pancakeswap is better than Uniswap due to the following reasons.
Transaction fees on pancakeswap are cheaper as compared o uniswap.
Pancake provides more earning features. This makes a trader explore a whole lot of features to make passive income.
*5). How to connect PancakeSwap with Metamask. Explain this with a screenshot.
To connect, visit the pancakeswap official website at First, https://pancakeswap.finance/
Locate "connect" in the top right and click on it.
- Out of the listed exchanges, select "MetaMask".
- Enter your password to connect MetaMask to pancakeswap.
- Successfully connected.
Conclusion
To conclude, we have learned the various features of pancakeswap and uinswap and how to connect wallets to them. We also learned the importance and the difference between them.
PancakeSwap and Uniswap are some of the known Defi that provide shows with convenience to transact crypto asset on the blockchain without any third-party platforms.
Respected first thank you very much for taking interest in SteemitCryptoAcademy
Season 3 | intermediate course class week 3
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