In the dynamic crypto era, many newbie startups and entrepreneurs have started to create their own businesses. Have you ever admired the reason behind this? Because crypto businesses are showering the startups with millions and billions of profits. Through various means, revenues are generated by the startups. Even this had been made possible for DeFi platforms. One such DEX platform that is presently reaping huge profits is none other than the PancakeSwap platform.
One of the best-ever Decentralized Exchanges in the crypto space has marked its presence with the native token ‘Cake’. Within 7 days, the ‘Cake’ token’s price has witnessed over 92% token surge. This paved the way for PancakeSwap to achieve $553,286,939 of market capitalization. DeFi market was stunned by this massive setback of the PancakeSwap.
Gaining popularity and fame is not enough for an effective business. Profits and Revenue are the essential mottos of a business. This applies to the PancakeSwap platform also. But, you may think, how does PancakeSwap make money? If you are eager to know the revenue streams of the PancakeSwap platform, we have come up with the perfect blog. Before knowing about the platform’s revenue streams, be clear about the platform. Let’s begin with…
What is PancakeSwap?
PancakeSwap is a unique Decentralized Exchange platform that runs on the BNB blockchain. This is completely a Decentralized platform where users can swap, buy, or sell their crypto tokens. ‘Cake’ is the native currency of this platform which is now traded for $2.4. Recently, the cake token has surpassed various records of DeFi tokens. The PancakeSwap platform has introduced a new feature named the position manager tool.
Through this tool, crypto users can stake their tokens in a vault. Once the tokens are staked, automatically it is allocated to the PancakeSwap liquidity pools. This helped PancakeSwap to gain more attention and attraction. This resulted in the surge of the ‘Cake’ token up to 92%. As per official reports, these tokens have witnessed a 32.43% price increase.
Even though PancakeSwap is famous in the DeFi space like Uniswap, these added fuel to its fame. This paved the way for many new revenue streams that have also arisen for the platform. When creating your own DEX platform, you can also integrate the same revenue model of the PancakeSwap. So for that, first know…
How Does PancakeSwap Make Money?
Many get confused regarding the revenue streams of the PancakeSwap as it is a Decentralized platform. Even though, PancakeSwap is a DEX, through various ways it is earning money. The important revenue models are listed below.
The Decentralized platforms are highly confidential and trustable. This is because it runs under a blockchain and it completely uses smart contracts. Hence, users choose PancakeSwap due to these factors. The platform allows users to stake the ‘Cake’ (native currency) in syrup pools. Through staking, the users can earn rewards based on the staking period and the amount of funds.
The PancakeSwap offers two different types of staking methods. One is Fixed and the other is Flexible. When the user chooses fixed, users can’t withdraw their token for a certain period. In the flexible method, users can withdraw their tokens when they request. But, through this how does PancakeSwap make money? When the user tries to withdraw the tokens within 72 hours, the platform collects 0.1% as an ‘unstaking fee’. And also in flexible 2% is automatically deducted during the yield harvest.
The PancakeSwap is an efficient automated market maker (AMM) platform. In PancakeSwap, users can swap BEP20 tokens. It collects fees in the name of ‘swapping fees’ from traders for each transaction. But, through this how does PancakeSwap earn money? Traders pay 0.25% for every transaction on the PancakeSwap platform. In that, 0.17% of the fees directly go to liquidity providers. 0.3% goes to the PancakeSwap treasury, and the remaining tokens are used to buy & burn the ‘Cake’.
Initial Farm Offering (IFO)
Many startups and entrepreneurs have now taken cryptocurrencies to raise their funds. This is because all over the world, cryptos have become a primary investment option. Various crowdfunding methods are there to raise enough funds for a project. One such popular funding method is the Initial Farm Offering (IFO) in PancakeSwap. Startups who are thriving to collect funds for their DeFi projects.
For initiating the token sale, PancakeSwap collects fees from startups and entrepreneurs. To participate in the IFO, users need to create their profile. So, from this, it is evident that PancakeSwap gains both user count and profits. When a user creates a new profile, ‘Cake’ tokens are burnt to equalize the supply and demand.
To enhance the user’s interest, PancakeSwap is offering a feature named lottery. Through two different ways, users can use the lottery feature. PancakeSwap allows its users to buy a ticket with a six-digit number. With the ticket, users must draw those numbers. The winning amount depends on the number of tickets won in the same price bracket. Once the user wins the lottery, he/she will get rewards from the platform. But, by offering rewards for users, how does PancakeSwap make money?
Here is the twist. The PancakeSwap platform earns revenue from the user. To buy the lottery, users have to pay transaction fees. Hence, this is one of the effective revenue streams of the PancakeSwap platform.
The PancakeSwap platform allows its users to predict the BNB’s price for the next five minutes in the prediction pools. The prediction can bet the price bet in the up and down pool. In the up pool, the highest price is deducted and in the down pool, it is vice versa. If the price is lower than the starting price, down pool users are rewarded.
The PancakeSwap collects 3% of revenue from each liquidity pool and it is burned every Monday. With this prediction, both the users and the platforms get revenue.
PancakeSwap NFT Marketplace
Presently, the platform has launched an efficient NFT marketplace where unique NFTs can be bought, sold, and traded. The platform specifically focuses on the gaming NFTs and two games are also introduced. Within the release, the PancakeSwap NFT marketplace has gained 25,000 active users. It supports nine different blockchains including Ethereum, Polygon, and others.
With the NFT marketplace, revenue from various streams including listing, auction, trading, and subscription fees can be collected. In addition to these, PancakeSwap also gained a huge user base all over the world.
Hence, these are some of the common revenue streams of the PancakeSwap platform. Every year, PancakeSwap introduces various features and options to collect revenue. From this, it is clear that a DEX platform also offers various revenue-generating streams for the owners. So, if you are interested in creating a DEX platform but doubting about the revenue. Leave your worries and start to build an enhanced DEX with various features.
When you decide to launch a DEX platform, it is important to know deeply about the development process. We have simply explained the creation process.
DEX like PancakeSwap – Development Process
You can develop and launch a DEX-like PancakeSwap in two ways. The first one is somewhat difficult which is none other than developing from scratch. You have to create your platform from the beginning. Choosing from technology stack, ROI options, payment methods, security features, UI/UX interface to add-on modules from scratch. Even though this seems to be an effective method, it takes almost 1 year to complete your project.
In addition to these, you have spent $1,00,000 to develop DEX like PancakeSwap. On the contrary to this, you can choose PancakeSwap Clone Script to develop your platform. The clone software is already well-developed, pre-coded, and bug-free. The revenue model of PancakeSwap is also integrated into the clone script. So, that you can simply adopt them and deploy your platform within 7 to 15 days. Compared to other development methods, the cost to deploy a DEX like PancakeSwap with a clone script is less.
The average cost of a PancakeSwap clone software ranges from $10,000 to $20,000. Based on add-on module integration, the complexity of security features, and customization, the cost can vary. So, choose the best PancakeSwap Clone Script to develop your Decentralized Exchange platform. Adopt the clone from a reputed PancakeSwap Clone Script provider.
As we have headed to the last part of the blog, we have that you have acquired enough knowledge about the revenue streams. Through this, you can break the myth that ‘DeFi platforms won’t reap huge profits for startups’. Based on your feature integration, security protocols, and additional revenue options, you can gain profits.
Coinsclone is a leading DeFi Development Company that has a skilled developer and expert team. Other than PancakeSwap, We also offer Uniswap Clone Script, Sushiswap Clone Script, Quickswap Clone Script, and Paraswap Clone Script. According to your business strategies, we also customize the ROI features. Globally we have satisfied 250+ clients in creating crypto projects. So, without any doubt or hesitation, reach our developer team and reap success.