With this article, we continue a series of explanatory articles about decentralized products. The tradecrypto.com team has already told you about the main features and disadvantages of the DEX of cryptocurrency exchanges in the article PancakeSwap vs Uniswap and Sushiswap vs Uniswap. We do not stop there and bring to your attention a review of PancakeSwap vs Pancake Bunny.
In this article, we will analyze the main technical and economic features of PancakeSwap vs Pancake Bunny. Let’s consider similar points in building the work of the DeFi protocol and the framing aggregator, such as being based on the BNB Chain. We will also try to identify the weak and strong points of the projects, their interconnection, and the possibility of a beneficial symbiosis.
What is PancakeSwap
So let’s start with the simple question: what is PancakeSwap and how does it work?
- PancakeSwap is a cryptocurrencies decentralized exchange that is based on the Binance blockchain Chain.
- PancakeSwap exchange created the system with automatic market making which does not need big investors. Moreover, this system is helping to organize automatic trading by using special algorithms.
How does PancakeSwap exchange work?
Now it’s time to find out how PancakeSwap works? The exchange uses smart contracts to automate all major PancakeSwap protocols. They prescribe the details of transactions on the platform. Smart contracts in DEX PancakeSwap replace order books familiar to CEX.
Liquidity providers in PancakeSwap pools are platform users themselves. In return, they receive LP tokens, which confirm the status of a liquidity provider and reflect the user’s share in the pool.
There are several ways to make money on PancakeSwap. For example, you can become a liquidity provider or earn income from farming and staking.
PancakeSwap and BNB Chain
Crypto exchange PancakeSwap has very close ties to BNB Chain.
Based on one of the most secure and scalable blockchains, PancakeSwap has several unique features:
- The first concerns NFT tokens, which are supported on the PancakeSwap platform. Being based on BNB Chain, you can sell, buy and exchange assets on the platform.
- PancakeSwap provides a tool for earning on the forecasts of the movement of the native BNB Chain token – BNB paired with the USDT stablecoin. The system offers to predict the movement of the cryptocurrency for 5 minutes. The amount of the payment is fixed on the prediction card.
What is PancakeBunny Yield Optimizer?
So we found out what PancakeSwap is and we are going to answer what is Pancake Bunny? Pancake Bunny is a BNB Chain-based De-Fi protocol and crop optimizer with a market cap of approximately $155 million (April 5, 2022).
The Bunny aggregator is dependent on Pancake Swap Finance as this DEX is the most used for farming and staking due to its efficiency and profitability. Bunny allows the platform to attract new users by investing and earning large rewards within the Binance Smart Chain ecosystem.
How does PancakeBunny work?
Thanks to the automation of Bunny protocols, investors get access to additional income without additional commissions and other actions. In addition, the Bunny protocol generates the most favorable interest rate and merges the user’s tokens using smart contract technologies.
Pancake Swap is the main platform for Bunny as it has the most liquidity due to its popularity of the platform. Bunny creates algorithmic strategies that allow investors to earn higher returns from liquidity pools and automatically merge them with native PancakeSwap tokens.
This increases the profitability and protection of user funds.
Many DeFi platforms are subject to hacker attacks, and it is in the decentralized finance sector that the largest number of hacks. And Pancake Bunny was also hacked, which led to criminals stealing more than $200 million. The developers announced an investigation and agreed to return all the stolen funds, but as a result, the price of the coin fell to a local minimum.
How to use PancakeBunny
Before finding out how to use Pancake Bunny we need to know more about native token Bunny.
The Pancake Bunny system starts work after purchasing Bunny crypto. It helps users to get increased profitability from the overall productivity of the farm. The profit for using ecosystem crypto coins in repositories comes from BNB cryptocurrency. Additionally, Bunny tokens enable investors to become a part of Pancake Bunny in accordance with the part in the general pool.
PancakeSwap and PancakeBunny: Similarities and Differences
Built with BSC blockchain
The main thing that PancakeBunny Finance and PancakeSwap have in common is that they are based on the BNB Chain:
- the protocol offers users quite flexible and risk-minimizing strategies for highly profitable farming. Including $CAKE tokens;
- the aggregator also helps investors earn higher interest rates on their crypto assets through advanced yield optimization strategies.
The Binance ecosystem now is home to lots of promising and valuable DeFi projects. Exactly because of that PancakeSwap and Pancake Bunny can exist and help each other.
Thanks to the PancakeSwap crypto exchange, the Bunny aggregator is getting more investors. Adding strategies to get more profitability by the Pancake Bunny helps PancakeSwap to expand the investor’s interest. This is the right way to raise the incomes of the entire protocol and specifically native tokens.
Differences between PancakeSwap and PancakeBunny
Even though PancakeSwap and Bunny are based on BNB Chain, they are different decentralized mechanisms. If PancakeSwap is essentially a decentralized cryptocurrency exchange with its own native token, then Bunny is just an aggregator that directly depends on PancakeSwap.
At the same time, another important difference is the terms of farming and staking. By using Bunny, investors save significantly on commission costs and gas. And at the same time, they can count on increased profitability due to unique algorithmic strategies.
However, using the Bunny aggregator is fraught with increased risks. The history of the protocol has already seen cases of a hacker attacks, as a result of which more than $ 200 million was stolen. The native Bunny token failed to show steady growth after the attack. But on the other hand, the developers did their best to make the Pancake Bunny aggregator and its algorithms safer.
How PancakeSwap and PancakeBunny can be used together
Decentralized cryptocurrency exchange PancakeSwap and Bunny can be used together and bring mutual profit. An investor can only use DEX and engage in staking, farming, or other forms of income generation. But investors can also use a specialized yield aggregator. Bunny will use PancakeSwap and automatically reinvest your staking or farming income.
At the same time, the profitability from your staking/farming will be higher due to the use of special algorithmic strategies. It is also important to understand that Bunny helps investors save significant amounts on commissions and gas fees. Given the placement of the DeFi protocol on the BNB Chain, this is an important advantage.
As a result, a situation is created where the interaction between PancakeSwap and Bunny allows you to generate more returns for investors, as well as more liquidity for the PancakeSwap platform. This, in turn, has a positive effect on the growth of the price of the native PancakeSwap token. Therefore, using Bunny for staking or farming on PancakeSwap is more than economically justified.
Using PancakeBunny brings the most value to investors when using and improving PancakeSwap’s features. Therefore, the relationship between these two protocols is better described not as a confrontation between PancakeSwap vs PancakeBunny, but as a mutually beneficial existence of PancakeSwap + PancakeBunny.
Nina Petrov (Editor-in-Chief at TradeCrypto.com), is a theoretical mathematician, passionate about new trends in the global economy and blockchain technology. She is a devoted content creator and editor, crypto-enthusiast, and stock market analyst.