PancakeSwap is a decentralized exchange (DEX) launched in September 2020 on Binance Smart Chain, now known as BNB Chain. It was built by an anonymous team that refers to its members as chefs.
CAKE is the native token of the platform. Thanks to low fees and fast transactions, PancakeSwap became one of the best-known DEXs on BNB Chain.
Instead of an order book, PancakeSwap uses an automated market maker (AMM) model built on liquidity pools. Users deposit pairs of tokens into pools to provide liquidity and earn a share of trading fees in return.
Later versions such as V3 added concentrated liquidity, which lets providers focus funds within chosen price ranges. Today the protocol also runs on several networks beyond BNB Chain, including Ethereum.
Data provided by CoinGecko
A governance vote in January 2026 lowered CAKE's maximum supply cap to 400 million tokens. Tokenomics 3.0, approved in 2025, reduced daily emissions and placed more weight on token burns.
Part of the revenue from swaps, perpetual futures, prediction markets and other products is used to burn CAKE. Because burns have exceeded new emissions, the total supply has been trending downward.
Low fees, fast settlement, a broad product range and multichain support are commonly cited strengths. A long operating history and a large user base also support the ecosystem.
At the same time, risks include smart contract vulnerabilities, impermanent loss for liquidity providers, competition among DEXs and changing regulation. Token policies can change through governance, so checking official sources directly is advisable.
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