In the dynamic cryptocurrency era, many new startups and entrepreneurs have started their own businesses. Have you ever wondered why? This is because the cryptocurrency business is bringing millions and billions of dollars in profits to startups. Startups generate revenue through a variety of means. DeFi platforms make this possible. One of the DEX platforms that is currently generating huge profits is the PancakeSwap platform.
One of the leading decentralized exchanges in the cryptocurrency industry has marked its presence with its native token ”.cake‘. The price of the ‘Cake’ token soared in 7 days. 92% token surge. This paved the way for PancakeSwap to achieve a market capitalization of $553,286,939. DeFi markets are shocked by PancakeSwap’s massive setback.
For an effective business, it is not enough to be popular and famous. Profit and profit are the essential mottos of business. This also applies to the PancakeSwap platform. But how does PancakeSwap make money? If you want to know the revenue streams of the PancakeSwap platform, find the perfect blog. Get clear about the platform before knowing its revenue streams. Let’s get started…
What is PancakeSwap?
PancakeSwap is a unique decentralized exchange platform that runs on the BNB blockchain. It is a fully decentralized platform where users can exchange, buy or sell cryptocurrency tokens. ‘Cake’ is the native currency of this platform, currently trading at $2.4. Recently, Cake token surpassed various records for DeFi tokens. The PancakeSwap platform has introduced a new feature called the Location Manager tool.
This tool allows cryptocurrency users to store their tokens in a vault. Once tokens are staked, they are automatically allocated to the PancakeSwap liquidity pool. This helped PancakeSwap gain more attention and attention. This caused the ‘Cake’ token to surge up to 92%. According to official reports, the price of this token rose by 32.43%.
PancakeSwap is famous in the DeFi space like Uniswap, but this has only further enhanced its reputation. This paves the way for many new revenue streams coming from the platform. When creating your own DEX platform, you can also integrate the same revenue model as PancakeSwap. To do that, first know…
How does PancakeSwap make money?
Since PancakeSwap is a decentralized platform, many people are confused about its revenue streams. PancakeSwap is a DEX, but it makes money in a variety of ways. Important revenue models include:
Staking Fee
The decentralized platform is highly confidential and trustworthy. This is because it runs on blockchain and fully uses smart contracts. Therefore, users choose PancakeSwap due to these factors. The platform allows users to stake ‘cakes’ (the base currency) on syrup pools. Through staking, users can receive rewards based on the staking period and amount of funds.
PancakeSwap offers two types of staking methods: One is Fixed and the other is Flexible. If the user selects locking, the user will not be able to withdraw the tokens for a certain period of time. The flexible approach allows tokens to be withdrawn when the user requests them. But how does PancakeSwap make money from this? If a user attempts to withdraw tokens within 72 hours, the platform will collect 0.1% as an ‘unstaking fee’. Additionally, 2% is automatically deducted during harvesting, which is flexible.
swap fee
PancakeSwap is an efficient Automated Market Maker (AMM) platform. PancakeSwap allows users to exchange BEP20 tokens. For each transaction, a fee called ‘swap fee’ is collected from traders. But how does PancakeSwap make money from this? Traders pay 0.25% for every trade on the PancakeSwap platform. Of that fee, 0.17% is passed directly to liquidity providers. 0.3% goes into the PancakeSwap vault and the remaining tokens are used to buy and burn ‘cakes’.
IFO (Initial Farm Offering)
Many startups and entrepreneurs are now using cryptocurrencies to raise funds. This is because cryptocurrencies have become a major investment option across the world. There are various crowdfunding methods to raise enough money for your project. One of these popular funding methods is PancakeSwap’s Initial Farm Offering (IFO). This is a startup that is successfully raising funds for its DeFi project.
To initiate token sales, PancakeSwap collects a fee from startups and entrepreneurs. To participate in IFO, users must create a profile. So, it is clear that this gives PancakeSwap both user numbers and revenue. When a user creates a new profile, ‘cake’ tokens are burned to equalize supply and demand.
luck
To increase user interest, PancakeSwap is offering a feature called a lottery. Users can use the lottery feature in two ways. PancakeSwap allows users to purchase tickets with a six-digit number. When using a ticket, the user must draw the corresponding number. The winning amount depends on the number of winning tickets in the same price range. If a user wins the lottery, they will receive a reward from the platform. But how does PancakeSwap make money by offering rewards to its users?
Here’s a twist. The PancakeSwap platform earns revenue from its users. To purchase lottery tickets, users must pay a transaction fee. Therefore, this is one of the effective revenue sources for the PancakeSwap platform.
swimming pool fee
The PancakeSwap platform allows users to predict the BNB price for the next 5 minutes from a prediction pool. Predictions can be made by betting on the prices bet in the up and down pools. In an up pull, the highest price is deducted, and vice versa in a down pull. If the price is lower than the starting price, downpool users will be rewarded.
PancakeSwap collects 3% of profits from each liquidity pool, which is burned every Monday. Both users and the platform profit from these predictions.
PancakeSwap NFT Marketplace
Now, the platform has launched an efficient NFT marketplace where you can buy, sell, and trade unique NFTs. The platform is particularly focused on gaming NFTs, and two games will also be featured. During this launch, the PancakeSwap NFT marketplace reached 25,000 active users. Supports 9 different blockchains including Ethereum, Polygon, etc.
Through the NFT marketplace, you can collect revenue from various streams such as listings, auctions, transactions, and subscription fees. Apart from this, PancakeSwap has also garnered a huge user base across the world.
Therefore, these are some of the common revenue streams for the PancakeSwap platform. Every year, PancakeSwap introduces different features and options to collect profits. This makes it clear that DEX platforms offer multiple revenue streams for their owners. So, if you are interested in creating a DEX platform but have doubts about your profits. Throw away your worries and start building a DEX enhanced with various features.
If you decide to launch a DEX platform, it is important to have a deep knowledge of the development process. I briefly explained the creation process.
DEX like PancakeSwap – Development Process
can be developed, Launch of PancakeSwap, similar to DEX In two ways. The first one is rather difficult other than developing it from scratch. You need to create a platform from scratch. Choose from scratch – from technology stack, ROI options, payment methods, security features, UI/UX interface to add-on modules. Although this seems like an effective method, the project takes almost a year to complete.
Apart from this, $1,00,000 was spent developing DEX like PancakeSwap. Conversely, you can choose PancakeSwap Clone Script to develop your platform. The cloning software is already well developed, pre-coded and bug-free. PancakeSwap’s revenue model is also integrated into the clone script. This makes it simple to adopt and deploy the platform within 7-15 days. Compared to other development methods Cost of deploying a DEX like PancakeSwap Less if you use a replication script.
The average cost of PancakeSwap cloning software is $10,000 to $20,000.. Costs may vary depending on integration of additional modules, complexity of security features, and customization. So, if you want to develop a decentralized exchange platform, choose the best PancakeSwap replication script. Adopt a clone from a reputable PancakeSwap Clone Script provider.
finish
Moving to the last part of the blog, you have gained enough knowledge about revenue streams. Through this, we can break the common belief that ‘DeFi platforms do not provide significant benefits to startups.’ You can earn money based on feature integration, security protocols, and additional revenue options.
CoinClone is a leading DeFi Development Company We have a team of experienced developers and experts. In addition to pancake swap, We also provide Uniswap replication script, Sushiswap replication script, Quickswap replication script and Paraswap replication script.. We also customize ROI features based on your business strategy. Globally, we have satisfied more than 250 customers in the creation of cryptocurrency projects. So, without any doubt or hesitation, contact our developer team and achieve success.