Is Uniswap better than PancakeSwap?
As we all know, the cryptocurrency platform shows no sign of slowing up its pace, and it is so obvious that it will open many opportunities shortly. Decentralized exchanges are a kind of cryptocurrency exchange that allows users for direct P2P cryptocurrency transactions without any middlemen’s intervention.
A DEX can provide the same trading services as a centralized exchange, and the only difference is that these DEX platforms are 100% decentralized. There are many DEXs in the crypto space that provide the best user-friendly experience to those who use them. PancakeSwap and Uniswap are two of the most popular DEXs in recent days. In this blog, we will see the ultimate comparison between them.
Blockchain
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PancakeSwap
PancakeSwap functions on a Binance Smart Chain (BSC), and more users are attracted to it because it charges very low transaction costs. The platform is an Automated Market Maker, and it allows users to trade crypto tokens and produce liquidity.
PancakeSwap has features that are similar to Uniswap. PancakeSwap enables users to swap or exchange tokens (especially BEP-20 tokens) without the involvement of any intermediaries. The platform offers liquidity through yield farming of its governance token “CAKE,” and there is a huge demand for it.
Uniswap
Considered the most popular platform for DEX, Uniswap works on an Ethereum blockchain and adds ETH for each successful transaction in the platform. The transaction fees are quite high when compared to other platforms.
This platform diminishes the regular order book model and comes up with an Automated Marker Maker protocol that permits users to trade with a smart contract known as Liquidity Pool.
By such a pathbreaking feature, the platform gives equal chances for everyone to swap tokens. The platform uses its automated solutions to clear out all issues related to liquidity. UNI is the governance token created by Uniswap.
Comparing Uniswap and PancakeSwap
The Uniswap platform encourages more trading pairs than the PancakeSwap platform. The fees gathered by the Unoswap platform will go to the liquidity providers.
On the other hand, the PancakeSwap costs will be distributed in three factors — liquidity providers, token buyback, and PancakeSwap treasury.
Coming to the transaction speed, PancakeSwap is a clear winner as the transactions executed in PancakeSwap occur faster than on the Uniswap platform.
On an endnote
Comparing both decentralized exchanges, it is quite hard to find who will be a clear winner as Uniswap is presently at the top of all other DEXs, and the other platform, PancakeSwap, is seen as a better investment as it gives more profits to users. The result lies in the mindset of the users who could figure out the best from the two platforms.
