Quick recap:

AMM Pancakeswap is the main product, generating the most revenue for Pancakeswap.
$CAKE tokenomics changing is one of the main reasons for the success of this project.
The increase in $CAKE price is proof that the project is still on the right track.

[toc]

What is PancakeSwap?

Pancakeswap is one of the first AMMs on BSC. The project was launched just a few days after the Binance Smart Chain mainnet.

The first product of the project is AMM Pancakeswap, a fork version of Uniswap V2. However, thanks to the BSC platform, the transaction time and transaction costs on Pancakeswap are very cheap compared to Uniswap, which has helped Pancakeswap attract a large number of small, low-capital investors.

Over time, besides AMM, the project has also developed more products to develop its platform, such as Syrup Pools, IFO, Lottery, Team Battle,... All of them are very successful and attract a large number of customers, investors to participate.

Eventually, Pancakeswap from 1 forked AMM has gradually become AMM with the highest TVL and trading volume today.

So what is the reason for the success of Pancakeswap? How does Pancakeswap capture value for $CAKE token?

We will learn about Pancakeswap's activities in this article through 3 parts in turn:

The working model of Pancakeswap and products inside;
How Pancakeswap captures value for $CAKE token;
Finally, the investment opportunities with Pancake.

Okay, let's get started.

How do Pancakeswap’s products work?

Pancakeswap currently has 7 main products, including:

Pancakeswap.
Farms.
Syrup Pools.
Initial Farming Offering (IFO).
Lottery.
Prediction.
Team battle.

We will analyze each of those products in turn, with 3 main aspects:

What is it?
The operating model of that product.
How the product captures value for the $CAKE token.

The first product we take a deep dive into will be Pancakeswap - the project’s main product.

PancakeSwap - the foundation of Pancake

What is PancakeSwap?

Pancakeswap is the first product and the development foundation of PancakeSwap, which helps users trade between BEP20 tokens. PancakeSwap is an AMM fork of Uniswap V2, using an x*y=k curve model. So basically, the operating model of PancakeSwap will be similar to Uniswap V2 but plus some new improvements.

The working process of PancakeSwap goes as follows:

(1): 1 Pool on PancakeSwap will have two types of assets, for example, A and B, the liquidity provider will put two assets at the ratio 1:1 into it and receive LP tokens, representing ownership of a part of the assets in the Pool.

(2): A trader who wants to swap A for B can put A in the Pool and receive B.

(3): Pancakeswap currently charges a fee of 0.25% of each transaction value. This fee will be divided as follows:

0.17% (68%) for LP (Liquidity Provider).
0.03% (12%) for PancakeSwap Treasury.
0.05% (20%) is used to Buyback & Burn $CAKE tokens.

(4): In addition to receiving a 0.17% transaction fee, Liquidity Provider can also take LP tokens to Staking and be rewarded with $CAKE tokens, which is Pancake's Yield Farming program to encourage people to provide more liquidity.

How PancakeSwap captures value for the $CAKE token

PancakeSwap is the core product of Pancake and generates the most revenue for the projects. Currently, PancakeSwap has the highest TVL and Volume among DEXs, so Pancake's revenue is high.

In Pancake V1, 0.03% transaction fee will be used to Buyback & Burn $CAKE tokens. In Pancakeswap V2, this number has increased to 0.05%, an increase of 66%.

Pancake will collect this transaction fee to buy $CAKE and burn every Monday, which will help:

$CAKE token has a stable source of Buy Demand every Monday.
Reduce supply of $CAKE in the market.

So as PancakeSwap grows, $CAKE price will increase sharply. This product contributes value directly to $CAKE token and Pancakeswap project.

PancakeSwap is the most focused product in the Pancake ecosystem and creates many incentives for users. I will clarify this in the following products.

PancakeSwap review

There are three notable points about AMM PancakeSwap product:

Binance Smart Chain: Pancake is a Fork AMM of Uniswap. However, the most significant difference of Pancake is the project is built on BSC, thereby taking full advantage of this blockchain, such as fast transaction speed, low fees,...
Low transaction fees: The project charges a relatively cheap transaction fee of 0.2%, much lower than the 0.3% fee of other AMMs such as Uniswap or Sushiswap. However, it also leads to the problem that LPs will also receive lower fees, only 0.17% per transaction (in SushiSwap, it is 0.25%).
Buyback & Burn mechanism: This is a special mechanism which dramatically affects the Tokenomics of $CAKE token and also the way how the entire PancakeSwap project works. Through this mechanism, the project adding value to the $CAKE token and promoting the whole project by distributing rewards. I will clarify this in the $CAKE’s Tokenomics section.

Farms - Yield Farming on Pancakeswap

What is Farms on Pancakeswap?

PancakeSwap's strength is the incentives system. Many of PancakeSwap's products are bootstrapped thanks to this system.

Farms is one of those Incentives, which is used to bootstrap TVL on PancakeSwap, encouraging users to provide more liquidity. You can find it in step (4) in the PancakeSwap operational model.

However, not all Pools are rewarded with $CAKE.

Pancakeswap has a certain number of $CAKE tokens to reward Liquidity Providers with Pools in Farms. How the $CAKE number is divided, which Pools are rewarded with $CAKE will be decided through Community Voting.

The operating model of Yield Farming on PancakeSwap:

The operating process is straightforward:

(1) First, users provide liquidity on PancakeSwap and receive LP tokens.

(2) Second, staking LP tokens into Pools in Farms. Over time, users will receive $CAKE tokens as reward.

How Farms captures value for $CAKE token:

Yield Farming is a popular and effective Incentive mechanism in DeFi. Through bootstrapping TVL on PancakeSwap, Yield Farming captures value indirectly for $CAKE tokens.

When TVL on PancakeSwap increases, it will attract Traders to trade more ⇒ more transaction fees generated ⇒ Pancake Treasury will capture that fee and create demand for $CAKE token.

Syrup Pools

What is Syrup Pools?

Syrup Pools is a staking product that helps you get tokens easily. You could stake $CAKE and obtain tokens for free.

There are two types of Syrup Pools:

Staking $CAKE to earn $CAKE.
Staking $CAKE to earn other Tokens.

Syrup Pool Operation Model:

The operational model of Syrup Pools is relatively simple, including four steps as follows:

(1) Initially, on Syrup Pools, there will be Staking $CAKE Pools to receive $CAKE. Projects that want to create Pools on Syrup Pools have to apply and must be approved by Pancakeswap.

(2) User ($CAKE holder) will stake their $CAKE into the Pools they want.

(3) Over time, $CAKE holders will receive tokens for free, just by staking $CAKE.

(4) If the returned token is $CAKE, users can ReStaking $CAKE to get more rewards. Currently, Pancakeswap has an automatic $CAKE reinvestment feature. The service fee is 2% of the rewards.

How Syrup Pool captures value for the $CAKE token:

Overall, this is a simple product, but the value Syrup Pool brings to $CAKE-holders and the PancakeSwap project is huge.

According to $CAKE's tokenomics, the number of $CAKE awarded to Syrup Pools equals the number of $CAKE rewarded to Pools in Farms (Yield Farming).

The number of Pools on Syrup Earn $CAKE is currently three pools, which is 1/30 of the number of Pools on Farms, so the average reward per Pools is very high, motivating users to participate Earn $CAKE Pool in particular and other Pools in Syrup Pools.

Some benefits of Syrup Pools for $CAKE-holders in particular and the Pancakeswap project in general can be mentioned as:

Rewarding tokens for $CAKE holders.
Creating Buy Demand for $CAKE: A large number of bonus tokens will attract investors to buy $CAKE for Staking. There is more than $4B $CAKE currently staked in the Syrup Pools.
Helping Pancake attract more new partners.
Increasing the number of trading pairs. Many tokens will be traded on Pancake ⇒ Growth of PancakeSwap products.

All in all, Syrups Pools is a product that contributes value directly to the $CAKE token while also contributing value indirectly through the development of PancakeSwap.

Syrup Pool is one of the leading products that make Pancake success today.

Initial Farming Offering (IFO) - a new IDO mechanism

What is IFO?

IFO (Initial Farming Offering) is essentially a form of fundraising similar to IDO, but the asset used to participate in the fundraising will be LP token from the $CAKE - BNB liquidity pool.

On other IDO platforms, users have to buy native tokens like POLS, DAO,… and stake them to participate in IDO. But in Pancakeswap, users only need to provide a large enough liquidity to participate in the token sale.

IFO Operating Model:

The operating model of IFO will take place in 4 main steps as follows:

(1) First, projects apply to Pancakeswap for IFO.

(2) Players who want to participate in IFO must follow two steps:

(2.1) Provide liquidity for Pools BNB/$CAKE on Pancakeswap and receive LP tokens.
(2.2) Staking LP tokens into IFO Pools.

(3) The IFO will divide the Tokens sold in the IFO according to the Overflow mechanism (divided according to the contribution ratio). Residual LP tokens will be returned to participants.

Example: IFO raised $1,000,000 which has up to $10,000,000 contributed to Pools i.e. Overflow x10. So if you contribute to IFO Pool $10,000 worth of LP tokens, you can only buy tokens with 1/10 of that amount, which is $1,000. Pancake will return residual LP tokens, which worth $9,000.

(4) After receiving the LP tokens raised in the IFO. Pancakeswap will remove the liquidity of those LP tokens, get $CAKE and BNB.

(4.1) $CAKE will be burned.
(4.2) BNB will be returned to the project.

How IFO captures value for the $CAKE token:

As can be seen, IFO is a unique fundraising method. Through fundraising, PancakeSwap has encouraged users to join Farming, which eventually provide more liquidity.

At the same time, PancakeSwap also created Incentives for Liquidity Providers of Pool BNB/$CAKE, their LP tokens not only receive fees and $CAKE, but also have a right to buy new Tokens.

In total, IFO capture value for $CAKE token in 5 main ways as follows:

Increasing $CAKE Buy Demand: Participants must buy BNB and $CAKE to provide liquidity. Currently $xx M is staked in Pool BNB/$CAKE.
Reducing $CAKE supply: The quantity of $CAKE obtained during the token sale (equivalent to 50% of the value obtained) will be burned, reducing the supply of $CAKE in the market.
Creating More Incentives for Liquidity Providers: This will help LPs provide more liquidity and last longer, creating sustainability for the Pancake platform.
Helping Pancake attract more partners.
Many tokens will be launched on IFO, which will facilitate the development of AMM Pancakeswap, then $CAKE holders will be the beneficiaries.

It can see that IFO is a unique product of Pancakeswap; this product directly contributes a lot of value to $CAKE token and also promotes the increase of TVL, trading pairs on AMM Pancakeswap, which also indirectly create value for the $CAKE token.

We went through 4 products: AMM Pancakeswap, Yield Farming, Syrup Pools, IFO.

They are core products of the Pancake project. Through distributing rewards and creating Incentives for each participant, each piece of the puzzle has significantly contributed to the success of Pancakeswap now.

*Next, we will go to some of the products being developed by Pancakeswap recently, thereby better understanding the mindset as a product of the Pancakeswap project, how the project grows with $CAKE token and promotes the Pancakeswap project to go up.

Those products include Lottery, Prediction, Team Battles.

Lottery

What is Lottery on PancakeSwap?

On Pancake, players use $CAKE to buy a 4-digit ticket. If they win, they will receive a share of the assets in the Reward Pool.

Lottery Operation Model:

The operational model of Lottery will take place in 4 main steps as follows:

(1) To participate in Lottery, you use $CAKE to buy tickets; 1 $CAKE = 1 ticket.

(1.1) After you send $CAKE, you will receive a ticket to join Lottery.
(1.2) The number of $CAKE used to buy tickets will be contributed to the standard Reward Pool.

(2) Pancakeswap also contributes a moderate portion of $CAKE to Pools to increase rewards, encourage more participants.

(3) The lottery will occur as similar as regular lottery programs, with winners and losers.

(3.1) Lose: You get nothing and lose your $CAKE used to buy tickets.
(3.2) Win: You will receive a divided number of $CAKE in Pools, depending on the prize you win.

(4) The portion in the Reward Pool will be distributed as follows:

(4.1) 80% of $CAKE in the Pool will be used to reward the winner, in which:
- 50% $CAKE will be distributed to the first prize winner, winning all four numbers.
- 20% $CAKE will be divided among 2nd prize winners, winning three numbers.
- 10% $CAKE will be divided among the winners of the third prize, winning two numbers.
- If no one wins the prize, the prize money will be accrued to the next lottery.
(4.2) The remaining 20% of $CAKE will be burned.

How Lottery captures value for $CAKE token

Lottery is a by-product, not too related to main products such as AMM, IFO, Syrup Pools, etc. However, Lottery's attraction to Pancake users is also significant because of its ease of participation and friendliness with ordinary users, whereas the prize is very high. There was once a first prize winner on Lottery, with a prize of up to $10 Million.

This shows that Pancakeswap has succeeded with this Lottery product. The project has created a playground on Pancake and successfully retains its users.

Currently, Lottery captures value in 2 ways as follows:

Increase demand for $CAKE: Players must use $CAKE to buy tickets.
Reduced $CAKE Supply: 20% of Pools $CAKE rewards will be burned.

=> Lottery is a product that captures value directly for $CAKE token.

Prediction

What is Prediction on PancakeSwap?

Prediction is a prediction feature on Pancakeswap. Users will predict if BNB price will increase or decrease in a certain time to receive rewards.

The product is currently in Beta and will soon launch the official version soon.

Prediction Operating Model:

* I will take the example that you are participating in predicting the BNB/USDT pair in the 5-minute timeframe.

The operation model of the Prediction product will take place in 3 simple steps as follows:

(1) Player predicts the BNB price in the next 5 minutes and bets the amount on UP Pool or DOWN Pool.

(2) 3% of each Pools amount will be transferred to Pancake Treasury and used to Buyback & Burn $CAKE tokens every Monday.

(3) After 5 minutes of BNB price results:

If the price is lower than the starting price: The bettor on the DOWN Pool will win, the amount in the UP Pool will be divided according to proportion among the players bet in the DOWN Pool.
Conversely, if the price is higher than the starting price: UP Pool bettors will win, the amount in the DOWN Pool will be divided according to among the players bet in the UP Pool.

How Prediction captures value for $CAKE token?

Similar to the lottery market, the Prediction market is also massive in traditional finance. Along with the Lottery product, the Prediction product will definitely help Pancake attract a lot of participants.

Currently, Prediction capture value for $CAKE in only one way: 3% of the amount participating in each predicted Round will be used to buy $CAKE and burn.

3% is obviously not a small number.

Currently, Prediction is only on Beta, and Pancake has no incentives for Prediction participants yet. Still, the number of BNB participating in each Round has increased to about 30 BNB ~ $16K to participate ⇒ Pancake Treasury will get 3% of that, which is almost ~478 USD every 10 minutes.

So if calculated by week, this product brings in revenue ~ $500,000/week, not a small number.

Later, when Prediction adds more trading pairs, more time frames to predict. The product is bound to grow.

Team Battle

What is Team Battle on PancakeSwap?

Team Battle is a game for teams on PancakeSwap. Teams will compete against each other; the three teams with the highest trading volume will share a 200,000 $CAKE bonus pool, equivalent to ~$6 M today.

Participation cost is 1.5 $CAKE:

1 $CAKE is used to create a personal profile.
0.5 $CAKE is used as a fee to join a team.

Team Battle Operating Model:

The operating model of the Prediction product will take place in 4 steps as follows:

(1) First, users must create a personal profile and join the group. The amount of the registration fee will be burned.

(2) The prize for Team Battle will be 200,000 $CAKE ~ $6M. This amount is taken from Pancake Treasury.

(3) Teams will compete to Trade on Pancakeswap; the team with the highest trading volume will receive the rewards.

(4) Reward Pools will be distributed to the winning teams.

How Team Battle captures value for $CAKE token?

In my opinion, this is an excellent product of Pancakeswap, confirming Pancake's Incentives system is one of the best systems in the DeFi space today.

The project has created Incentives for LP tokens, $CAKE holders, and now the project continues to develop more Incentives for the important remaining participants ⇒ Incentives for Traders.

However, instead of Incentives for each specific Trader, Pancake creates incentives for each team; this creates a competitive playground between the teams, connecting members in the Pancake community.

Through this playground, Team Battle captures value for Pancake token in 2 ways:

Direct: Increasing buy Demand for $CAKE; each participant must create a personal profile, spending 1.5 $CAKE.
Indirect: Strongly promoting activity on Pancakeswap, generating transaction fees, thereby indirectly capturing value into $CAKE tokens.

Personal Opinions on Team Battle Product

In addition to the values that Team Battle brings to Traders and $CAKE holders mentioned above, I think this is an excellent product of Pancakeswap, showing the team’s long-term vision.

If other AMMs are created to solve users’ need, Pancake makes a playground for users, same product, but knows how to gain the advantage of that particular product.

Eventually, Team Battle may have newer variations, new game rules to increase attractiveness.

Currently, Team Battle chooses the winning team as the team with the highest trading volume. Later, the product might use some other criterias such as highest ROI, highest profit, trading a certain number of pairs,...

=> This will diversify the game and increase the appeal on Pancakeswap a lot.

Overview of the operating model of Pancakeswap

After going through 7 products of Pancakeswap, what do you think about the product concept of Pancakeswap?

If you pay close attention, you will see that all Pancakeswap products are related to $CAKE tokens. $CAKE tokens play a vital role in the Pancakeswap ecosystem.

In Pancakeswap, $CAKE token has five use case:

Reward Liquidity Provider in AMM Pancakeswap: This is the critical function of $CAKE token.
Incentivize participants of other products: Lottery participants (Lottery), Traders (Team Battle),...
Staking: $CAKE Staking in Syrup Pools will enjoy more $CAKE or other tokens.
Farmings: $CAKE tokens can be used to provide liquidity in pools.
Entry requirement for Pancake products: Lottery, NFT, Team Battle,...

The first two functions are most important functions of $CAKE, promoting the development of Pancake. However, this also increases the supply every day.

=> To solve this problem, Pancakeswap has created many products ⇒ Generated a lot of revenue ⇒ Bought back $CAKE in the secondary market and burned ⇒ Thereby reduced the supply of $CAKE.

Overview of the operating model of Pancakeswap:

(1) Pancakeswap and the Pancake community will vote to decide how to use the daily minted $CAKE.

(2) The daily minted $CAKE will be used to create Incentives, develop Pancakeswap products. Main products include AMM Pancakeswap, Initial Farming Offering (IFO), Syrup Pools, Lottery, Battle Team,...

(3) These products are created and developed for three primary purposes:

(3.1) Increase Revenue to Buyback & Burn $CAKE tokens: This is the primary purpose of Pancake's products, burning $CAKE tokens to limit inflation caused by Incentives programs. Thereby stabilizing the $CAKE token price and also stabilizing the project.
(3.2) Generate Revenue for Pancake Treasury: The project will have a transparent report on spending in Pancake Treasury. Most of the money will be used for Pancake's activities, building infrastructure, paying staff salaries, etc., which thereby create a premise to develop the project.
(3.3) Create Buy Demand for $CAKE tokens: Most products require $CAKE to participate. This creates Buy Demand for $CAKE ⇒ Increasing $CAKE price will increase Incentives rewards for products ⇒ Products will become more attractive.

⇒ From these three purposes, 3 Flywheels were created to help the Pancakeswap project grow quickly and successfully.

Overall, with the mindset of developing products around $CAKE tokens, Pancakeswap has created a thriving ecosystem.

* However, when the model is too dependent on $CAKE token, it will lead to concerns about controlling the inflation rate of $CAKE token.

And to learn more about how to control the supply of $CAKE tokens, let's take a look at $CAKE's Tokenomics.

CAKE's Tokenomics

The unique feature in $CAKE's Tokenomics is that $CAKE has an infinite supply; there is no ceiling for the supply of $CAKE tokens.

And $CAKE is used a lot in the Pancakeswap ecosystem in every product, so supply management is an essential task.

Usually, there will be one proposal every month, propose how to manage and distribute the $CAKE token reward reasonably. The community will vote on this monthly proposal.

Here is the current tokenomic of $CAKE token:

The amount of $CAKE minted every day is currently about ~530,000 $CAKE which will be used to reward in products:

Syrup Pools: 288,000 $CAKE.
Farms (Yield Farming Pools): 238,000 $CAKE.
Lottery Pools: 4,000 $CAKE.

And to compensate, deflation the supply of $CAKE that increases every day, there are Pancakeswap has developed seven sources of revenue used to buy and burn $CAKE, including:

100% $CAKE raised from IFO.
100% $CAKE is used to create user’s profile and generate NFT.
20% $CAKE is used to buy tickets.
0.05% fee per transaction on AMM Pancakeswap.
3% of the amount participating each round in the Prediction market.
2% Yield is obtained from the Auto $CAKE pool product.

As can be seen, many products benefited, bootstrapped with $CAKE tokens, and many products generated revenue to redeem and burn $CAKE.

=> $CAKE supply management is a highly complex issue:

If the number of $CAKE minted is too high, it will create selling pressure for $CAKE tokens.
If the number of $CAKE minted is too low, there won't be enough Incentives to attract participants.

The ultimate goal of governance is “Minted $CAKE = Burned $CAKE every day”

Let's get back to the Pancakeswap operating model

As can be seen, the project has three flywheels, if “Number of $CAKE minted = Number of $CAKEs burned per day”.

Flywheel 1 (3.1) will be canceled, not creating any additional value (i.e., the value of Pancakeswap given is equal to the value of Pancakeswap received).
Flywheels 2 (3.2) and 3 (3.3) will continue:
- Revenue for Pancake Treasury increased ⇒ Creating a foundation for Pancakeswap to develop the project.
- Buy Demand $CAKE increases ⇒ $CAKE price increases ⇒ Increases Incentives value ⇒ Attracting users to use the product.

All in all, the Pancake feedback loop still works. The recent surge in $CAKE prices is the best proof that this pattern is on the right track.

How Pancakeswap Capture value for $CAKE token

Initially, $CAKE token was only used for Yield Farming activity; there are not too many use cases for $CAKE token as now. Like other projects using the Inflation Model, the amount of $CAKE supplied to the market was too much, creating Sell Demand ⇒ $CAKE price dropped sharply at the initial launch.

However, over time, Pancake has gradually changed and built the No.1 AMM position on BSC. The project has, in turn, released Syrup Pools, IFO, NFT products,... creating more use cases for $CAKE.

Last April, a significant change in Pancakeswap took place. The project launched Pancakeswap V2, replacing all contracts, $CAKE's tokenomics thus became more efficient (as I mentioned above), $CAKE is used more and plays a vital role in the Pancake ecosystem.

In each of the above products, we have analyzed how Pancakeswap Capture value for $CAKE token. So now, we will summarize some of the main ideas to make them easier to understand.

Pancakeswap Capture value for $CAKE tokens in some ways as follows:

Governance: $CAKE-holders can participate in voting for Administrative Proposals.
Create Buy demand: There is a lot of demand to buy $CAKE in the Pancake ecosystem.
- Farming.
- Staking.
- Join other products on Pancake: Lottery, IFO,...
Reduced supply of $CAKE: Most of Pancake's revenue is used to buy $CAKE and burn. The burning of $CAKE takes place every Monday.

Investment opportunities from Pancakeswap

What to invest in Pancakeswap?

According to Pancake's operating model, as Pancake grows, it will lead to 2 things:

The price of $CAKE increases: Since most products require $CAKE to participate, as the product grows, the demand to buy $CAKE will increase.
Incentives increase: The $CAKE project has no intention of reducing Incentives for users. When the revenue of $CAKE increases, the number of $CAKE burned, the number of $CAKE minted to reward will also increase or remain the same.

So in Pancakeswap, we can invest in:

$CAKE token.
Pancake products: Like IFO, Syrups, Team Battle,... to receive Incentives from the project.

Potential growth of Pancake

Pancake's operating model is a straightforward model to develop.

The project can create a new product, attach the value of $CAKE token to it so that the product can be easily included into the Pancake ecosystem.

The Pancake project has prepared very well for future products. You can see an overview of Pancake products below.

Some notable products include:

Gamification: Featuring more games for the community, similar to Lottery, Team Battle. Pancakeswap released some games about:
- NFT.
- Gambling.
- Earning points.
- ...
Lending & Borrowing: This will definitely be a big move for Pancake. AMM Pancakeswap is currently the number 1 AMM in terms of TVL and trading volume, so if a Lending & Borrowing puzzle will be added, how do you think?
- Pancakeswap will become a closed DeFi ecosystem, leveraging the project itself.
- LP tokens in Pancakeswap can only participate in IFOs. A Lending product that allows LP tokens as collateral will significantly increase the efficiency of capital use in Pancake.
There are also several products such as Margin Trading, Referral program, ... also very promising.

Taking advantage of the large user base of the project and of the $CAKE token's tokenomics, Pancakeswap will thrive and maintain its position.

Summary and conclusion

Pancake is one of the first AMMs on BSC and is currently wholly winning over other competitors in this area.

By summarizing the operating model of Pancakeswap, we can draw some main ideas as follows:

$CAKE tokens play an essential role in the operation of Pancake.
After launching Pancakeswap V2, $CAKE's tokenomics has become more flexible, serving more users.
The current main product of Pancake is still AMM Pancakeswap; the project uses many Incentives to promote this product.
In addition, the project is also developing many other products, increasing demand and limiting the inflation of $CAKE tokens.
Pancakeswap's 3 Flywheels are still doing great, as shown by the increase in the price of the $CAKE token.
Pancake's business model is easy to scale, and the project has a strategy ready for the upcoming time.

After reading the article about Pancakeswap operating model, the nature, and the potential development of Pancakeswap, what do you think about this project? Will Pancakeswap maintain its position as the AMM with the highest TVL and Volume as of today? Please leave your comments in the comment section below so we can discuss more.

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Vi Dang