What is the purpose of uniswap, sushiswap, pancake

Vietnam - Korea University of Information and Communication Technology WHAT IS THE PURPOSE OF UNISWAP, SUSHISWAP, PANCAKE? Students: Hoang Vu Da Quynh 19IT6 Thai Thi Thu Xuan 19IT5 Tran Quang Sang 19IT5 Nguyen Pham Tuan Vu Instrucror: Lecturer Duong Quoc Tuan Đa Nang, January 2022 19IT5 What is the purpose of uniswap, sushiswap, pancake? Vietnam - Korea University of Information and Communication Technology WHAT IS THE PURPOSE OF UNISWAP, SUSHISWAP, PANCAKE? Students: Hoang Vu Da Quynh 19IT6 Thai Thi Thu Xuan 19IT5 Tran Quang Sang 19IT5 Nguyen Pham Tuan Vu Instrucror: Lecturer Duong Quoc Tuan Đa Nang, January 2022 2/14 19IT5 What is the purpose of uniswap, sushiswap, pancake? COMMENTS OF LECTURER 3/14 What is the purpose of uniswap, sushiswap, pancake? CONTENT I UNISWAP Tradition exchanges & DEXs: .5 What is Uniswap: How does Uniswap works: The purpose of Uniswap: .7 Pros & cons of Uniswap: .7 II SUSHISWAP What is SushiSwap? (SUSHI) .8 How does SushiSwap work? Pros and Cons of sushiswap Uniswap vs SushiSwap Which exchange is better? SushiSwap or Uniswap? 10 III PANCAKESWAP 11 What Is PancakeSwap? 11 The Purpose of PancakeSwap 11 How Does PancakeSwap Work? 11 The Benefits of Using PancakeSwap 12 PancakeSwap vs Uniswap 13 4/14 I UNISWAP Tradition exchanges & DEXs: Before we explain what uniswap is, let's take a look at these related concepts: Traditional exchanges are centralized, meaning they are owned by a company that has complete control over the exchange and the computers that run it Traditional exchanges are also regulated by the KYC laws, which is an abbreviation for ‘Know Your Customer’ These laws require each new customer to provide extensive personal information, including home address and phone number before the customer can trade on the exchange Additionally, in order to trade on a traditional exchange, users need to deposit money on the exchange, basically giving the exchange control over their funds On the additional exchange, when users want to buy or sell a certain cryptocurrency, they submit a “Buy” or “Sell” order All of these orders are recorded in the exchange‘s order book Once there’s a match between a buyer and a seller, a trade is conducted DEX(Decentralized exchanges) are part of the decentralized finance ecosystem Decentralized finance (DeFi) is a term given to traditional financial services such as exchanges, lending services, and insurance that have been decentralized through the use of Blockchain technology Unlike a traditional exchange that requires a controlling company and centralized servers to operate, a DEX consists of a set of smart contracts deployed on a blockchain In simple terms, it is a set of automated rules that are executed by a network of independent computers without any central entity controlling it Since DEXs are not controlled by anyone, they can not be regulated and are in fact open to everyone When using a DEX there is no need to open an account, or go through an identification process where you would have to supply your personal information Additionally, DEXs allow users to trade directly from their own wallets allowing them to keep full control over their funds A key difference a DEX has from a traditional exchange is in the way transactions are conducted and how price is determined DEXs don’t store any user funds and have no order book Liquidity on DEXs is created through liquidity pools Liquidity pools are a shared pot of funds deposited by the general public, and DEXs use liquidity pools in order to fulfill “Buy” and “Sell” orders People who deposit funds in liquidity pools are known as liquidity providers (LPs) In exchange for the locked funds, LPs receive a part of the DEX’s trading fees in a process known as liquidity mining On a traditional exchange, when a seller and buyer reach an agreement through matching orders in the exchange order book, a trade is conducted At that point the price of the coin is determined until another trade is executed at a different price In other words, the price of the most recent trade is considered the current price on the exchange A DEX doesn’t have an order book Users trade within a liquidity pool Instead of using the last trade to determine the price, a mathematical formula is used This formula is called an Automated Market Maker (AMM) What is Uniswap: Uniswap is a DEX built on top of the Ethereum network infrastructure It’s a set of automated rules used for trading ERC-20 tokens, which is a term given to a certain standard What is the purpose of uniswap, sushiswap, pancake? of Ethereum tokens Uniswap is the most popular decentralized application (DAPP), on the Ethereum platform with hundreds of thousands of users trading on it each week Additionally Uniswap is one of the most forked projects in the DeFi space, meaning people use its code to build additional applications Evolution of Uniswap: Version V1 Release date November of 2018 Description Allow trading of any ERC-20 token to Ether and back V2 May of 2020 The trading of ERC-20 tokens directly between one another without first having to trade with Ether became available V3 May of 2021 Allowing a more effective use of capital to whoever decides to supply liquidity to Uniswap How does Uniswap works: Uniswap runs on two smart contracts: “Exchange” and “Factory” These are automatic computer programs that are designed to perform specific functions when certain conditions are met In this instance, the factory smart contract is used to add new tokens to the platform and the exchange contract facilitates all token swaps or trades Any ERC20-based token can be swapped with another on the updated Uniswap V2 Uniswap solves the liquidity problem of centralized exchanges through an automated liquidity protocol Uniswap users pool their money together to create a fund that’s used to execute all trades that take place on the platform Uniswap uses an AMM called “Constant Product Market Maker Model” to determine the price of coins on its exchange This AMM follows a simple formula of X times Y equals K By using the “Constant Product Market Maker Model” algorithm, liquidity is kept without the need for external market makers, no matter how large the order size or how tiny the liquidity pool This model makes it infinitely expensive to consume the whole amount of a certain coin, putting a damper on larger orders Arbitrage traders are an essential component of the Uniswap ecosystem These are traders that specialize in finding price discrepancies across multiple exchanges and use them to secure a profit In September of 2020 Uniswap introduced the UNI token through an airdrop UNI was designed to serve as a governance token, allowing whoever holds it to influence and vote on development decisions The more tokens you hold, the more voting power you have The purpose of Uniswap: 6/14 What is the purpose of uniswap, sushiswap, pancake? Uniswap is a DEX that allows users to trade any ERC-20 token without any intermediary With DEXs, you don’t need to deposit funds to a centralized exchange that has complete control of your funds Instead of a privately controlled order book, Uniswap’s exchange operations are conducted over smart contracts that define and comprise all trading conditions, such as liquidity and the traded assets’ prices To gradually hand-over governance over Uniswap to the public, its developers created UNI UNI is an ERC-20 token used within Uniswap’s voting mechanism, where the more UNI you have, the higher your voting power is and the more influence you have over Uniswap’s developmental future Pros & cons of Uniswap: Pros Cons Uniswap transaction fees are low(0,30%, could be reduced to 0,25% in the future) No needs KYC(supply personal information) Self-managing property(help avoid the risks associated with decentralized exchanges) Opportunity to access coin(Token price fluctuations will delight you) Fake Smart Contract 7/14 Transaction failed(The money will be refunded) Fee gas is extremely high due to high network usage Phishing attacks What is the purpose of uniswap, sushiswap, pancake? II SUSHISWAP What is SushiSwap? (SUSHI) SushiSwap is a software running on Ethereum that seeks to incentivize a network of users to operate a platform where users can buy and sell crypto assets Similar to platforms like Uniswap and Balancer, SushiSwap uses a collection of liquidity pools to achieve this goal Users first lock up assets into smart contracts, and traders then buy and sell cryptocurrencies from those pools, swapping out one token for another One of a growing number of decentralized finance ( DeFi) platforms, SushiSwap allows users to trade cryptocurrencies without the need for a central operator administrator This means that decisions relating to the SushiSwap software are made by holders of its native cryptocurrency, SUSHI Anyone holding a balance of the asset can propose changes to how it operates, and can vote on submitted proposals by other users SushiSwap was created in 2020 by a pseudonymous individual or group called Chef Nomi, along with co-founders sushiswap and 0xMaki The founding team copied the opensource code used by Uniswap to create the foundation for SushiSwap How does SushiSwap work? SushiSwap’s core function is to mirror a traditional exchange by facilitating the buying and selling of different crypto assets between users Rather than being supported by one central entity, tokens traded on SushiSwap are maintained by smart contracts, and users lock crypto on the software that can then be accessed by traders Of note, those who trade against locked assets pay a fee that is then distributed to all liquidity providers proportionally, based on their contribution to the pool SushiSwap Farms 8/14 What is the purpose of uniswap, sushiswap, pancake? Liquidity providers contribute to SushiSwap pools by connecting their Ethereum wallet to the SushiSwap farming software and locking two assets into a smart contract For example, SushiSwap’s USDT/ETH liquidity pool consists of equal values of USDT and ETH deposits Buyers can then swap tokens within the pool based on the protocol’s rules Smart contracts running SushiSwap take the amount of tokens from the buyer and send an equivalent amount of tokens back, keeping the total pool price constant In exchange for maintaining liquidity in these pools, providers are then rewarded with protocol fees, along with a portion of the 100 newly minted SUSHI daily Pros and Cons of sushiswap Pros Cons SushiSwap has more than 100 ERC20 trading pairs on the exchange There are high gas fees associated with SushiSwap, a problem that all other Ethereum AMMs face There are several SUSHI-based initiatives involving swapping, farming, liquidity pools, staking, and more SushiSwap can be difficult to navigate for beginners The SushiSwap exchange is easy to navigate and use There are some security concerns with the exchange Uniswap vs SushiSwap It’s no secret that crypto is deeply rooted in the spirit of open-source Many think that Bitcoin and a growing number of permissionless DeFi protocols act as new kinds of public goods in the form of software Since these projects are so easily copied and relaunched with small changes, it’s only natural that this leads to competition between similar products We could assume, however, that this should ultimately lead to the best products for the end-user It’s without a doubt that the DeFi space owes significant advancements to the Uniswap team But we could see a future where even both Uniswap and SushiSwap (or other forks) flourish Uniswap might remain at the forefront of innovation in the AMM space, while SushiSwap could provide an alternative that’s more focused on features that the community wants to see With that said, fragmenting liquidity between similar protocols isn’t ideal If you’ve read our Uniswap article, you know that AMMs work best with as much liquidity in the pools as possible If a lot of the liquidity in DeFi is split between many different AMM protocols, that could lead to a worse experience for the end-user The critical difference between the two comes down to tokenomics When SushiSwap's creator Chef Nomi forked Uniswap, his reason for doing so was to introduce the SUSHI token as an additional reward for liquidity providers and farmers So, while everything works exactly the same on SushiSwap as it does on Uniswap, the key differences are: 9/14 What is the purpose of uniswap, sushiswap, pancake? SushiSwap rewards liquidity providers with 0.25% of pool fees + 0.05% paid to SUSHI token holders While Uniswap closed its UNI token farming period, SUSHI yield farming remains alive and well, with rewards in some pools reaching as high as 80% APY A very different UI experience SushiSwap poses as a menu at a Japanese restaurant, with options like Onsen Menu and Omakase standing in place of Uniswap's very streamlined app page Besides these differences relating to how rewards are generated and slight usability differences, SushiSwap and Uniswap are quite similar Which exchange is better? SushiSwap or Uniswap? Ultimately, whether you'll side with SushiSwap or Uniswap has everything to with how you want to earn rewards from your exchange Uniswap pays higher fees to liquidity providers (0.3% vs 0.25% SushiSwap), but SushiSwap throws in an additional 0.05% paid to SUSHI holders The latter thus incentivizes holding SUSHI, while the former pays LPs However, the exchange experience is smoother, cleaner, and far more straightforward using the Uniswap app SushiSwap's Japanese izakaya experience is novel but ultimately clutters the exchange's interface In the battle between Sushi and Uni, Uniswap comes out on top for traders, liquidity providers, and the crypto-curious On the other hand, yield farmers will migrate to SushiSwap's juicy APY opportunities 10/14 What is the purpose of uniswap, sushiswap, pancake? III PANCAKESWAP What Is PancakeSwap? PancakeSwap is a decentralized exchange built on Binance Smart Chain, a quick and low-cost Ethereum alternative PancakeSwap, like the well-known Uniswap DeFi AMM protocol for Ethereum, allows users to exchange cryptocurrency assets by tapping into user-generated liquidity pools PancakeSwap provides a variety of DeFi farming alternatives for liquidity providers to construct stated liquidity pools Since PancakeSwap opened its doors, well over $1 billion in total value locked (TVL) has transferred to the platform DeFi and DEX were created with the goal of decentralizing global finance Experts in the field of cryptocurrency conceived a system without the need for centralized exchanges The market leaders were UniSwap and SushiSwap However, the majority of DApps were developed on the Ethereum blockchain, which skews the results Due to this overreliance on the Ethereum network, issues such as poor transaction speeds and expensive gas prices arose Unlike Uniswap, however, PancakeSwap compensates users who bet its own BEP-20 token, CAKE At a 1:1 ratio, you get SYRUP when you stake CAKE SYRUP holders are entitled to 25% of the CAKE emissions, which are divided proportionally to holders The Purpose of PancakeSwap - Use CAKE to perform swaps or participate in some other activity on staking protocol, farming, liquidity or lottery or Prediction on PancakeSwap - Used to pay transaction fees - Storage Wallet: CAKE is a token on the BSC network Therefore we can use wallets that support the BEP-20 standard to store CAKE One of them includes hot wallets, which are wallets at exchanges like Binance, Huobi… Or mobile wallets like Trust Wallet… Or some cold wallets like Ledger or Tresor… - Exchanges: Currently, users can buy and own CAKE through a number of CEX exchanges such as Binance, Gate.io… - The system automatically generates an AMM in the settings field that will help buy and sell orders to be filled WITHOUT needing to use an order - When someone wants to buy or sell, that order will be filled and the transaction will be executed successfully - Those who want to buy and sell when placing orders, must contribute their assets to a Pool And this command will match the setup immediately The price of such tokens will be adjusted according to the available formula of the Smart Contract smart contract How Does PancakeSwap Work? PancakeSwap is a Binance Smart Chain-based decentralized exchange It operates on an automatic market maker (AMM) paradigm rather than a traditional market model with a seller and buyer Traders use permissionless liquidity pools to trade digital assets under the AMM paradigm 11/14 What is the purpose of uniswap, sushiswap, pancake? These liquidity pools are where people put their money In exchange, they get an LP (liquidity provider) token They are also paid a fee for putting their assets up for loan People that want to access this liquidity, on the other hand, must pay a fee to the DeFi platform This charge is then divided among those who contributed to the pool A little portion of this pool is kept in the PancakeSwap treasury to keep the platform functioning The AMM approach allows you to profit by increasing the pool's liquidity The more you give, the more you will receive Profits can be made by trading LP tokens They can also be farmed in a different type of liquidity pool to earn CAKE, PancakeSwap's native BEP-20 currency That's not all: there's a different kind of pool that pays off more than the others SYRUP pools are what they're called People can stake their CAKE tokens in the SYRUP pools to receive even more rewards The Benefits of Using PancakeSwap PancakeSwap entered the market to overcome Ethereum-based systems' constraints To that aim, PancakeSwap has a number of built-in features that set it apart from the competition Some of the more well-known benefits of using PancakeSwap are listed below: - Interconnectivity: The PancakeSwap creators were well aware that Ethereum dominated the DeFi field, and anyone trying out PancakeSwap for the first time would enjoy some interoperability between the two platforms As a result, PancakeSwap's creators designed it with interconnection in mind As a result, it works with a variety of wallets, including MetaMask, which can store and manage both BEP-20 and ERC-20 standard tokens Many Ethereum-based coins are also listed on PancakeSwap's exchange It allows anyone who want to switch between the two blockchains to so with ease - PancakeSwap's user interface has been created to be simple and easy to use Even for beginners, it is simple to navigate and utilize Its flawless performance ensures a superior trading experience There is never too much for you to manage, and you will never be forced to leave because things became too much for you - Various Earning Options: PancakeSwap members can take advantage of a variety of tools and tactics To make money, you can farm, stake, or participate in NFTs and lotteries Potential earnings are only around the corner with so many possibilities at your disposal - Because of the intricacy of BSC, PancakeSwap allows for faster transactions As a result, traders rarely miss out on a trading opportunity owing to poor performance They can be more proactive in their responses to trading cues, allowing them to profit by remaining one step ahead of the competition - Cheap Transactions: Due to the Ethereum network's overpopulation, transaction fees have risen to as high as $20 per transaction at times PancakeSwap is a lot less expensive choice, with an average transaction cost of $0.08 One of the key reasons for its growing popularity is the price difference - PancakeSwap respects your privacy and does not need you to give any governmentapproved identity PancakeSwap vs Uniswap 12/14 What is the purpose of uniswap, sushiswap, pancake? - The general cost locked (TVL) in Uniswap alternate is the manner in advance of PancakeSwap or every other alternate kind because it has extra than $7.6 billion TVL in its alternate, while PancakeSwap continues to be growing and has round $6.5 billion TVL - As Uniswap is constructed on Ethereumblockchain wherein every transaction fees ETH, additionally called the fuel line fee, is most effective growing excessive with each day passing by Thus, the transaction fees in Uniswap are relatively better than that of PancakeSwap - Talking approximately the quantity of tokens that can be indexed at the exchanges in PancakeSwap and Uniswap, Uniswap sincerely remains above PancakeSwap because it has extra than 1600 crypto tokens beneath neath it, while PancakeSwap has around two hundred crypto tokens - PancakeSwap runs on Binance Smart Chain, while Uniswap operates on ethereal blockchains - Uniswap released withinside the yr 2018 on 2d November, while PancakeSwap changed into released withinside the yr 2020 on twentieth September Thus, Uniswap had years in advance of PancakeSwap and increased so vast 13/14 What is the purpose of uniswap, sushiswap, pancake? REFERENCES https://www.fool.com/the-ascent/cryptocurrency/articles/7-things-to-know-beforeyou-buy-sushiswap-sushi/ https://bitly.com.vn/xnklyn 14/14