PanCakeSwap is a decentralized exchange (DEX) built on the Binance Smart Chain (BSC). Created in 2020 by an anonymous developer or team known as Chef Hops, it allows users to trade cryptocurrencies, provide liquidity, and earn fees using automated market-making algorithms. Its name is a play on the popular DeFi project UniSwap and the BSC's pancake-themed branding. PanCakeSwap has gained popularity for its high-performance, low-fee trading options within the Binance ecosystem.
PanCakeSwap offers several benefits compared to its direct competitors in the decentralized finance (DeFi) space.
One of the key benefits of using PanCakeSwap is its low transaction fees. Compared to other popular decentralized exchanges like Uniswap and Sushiswap, PanCakeSwap generally offers lower fees for users. This can be particularly advantageous for traders and investors looking to minimize their transaction costs.
Another benefit of PanCakeSwap is its fast transaction speed. The platform is built on the Binance Smart Chain (BSC), which is known for its high scalability and fast confirmation times. This means that users can execute transactions quickly and efficiently, reducing the time it takes to complete trades.
Moreover, PanCakeSwap has a user-friendly interface that makes it easy for both experienced and novice users to navigate and participate in DeFi activities. The platform provides clear instructions and a simple process for swapping tokens, providing liquidity, and earning yields through farming and staking.
Additionally, PanCakeSwap offers a wide range of tokens and liquidity pools for users to choose from. This provides ample opportunities for traders and investors to diversify their portfolios and explore different investment options.
Overall, PanCakeSwap stands out among its direct competitors by offering lower fees, faster transactions, user-friendly interface, and a diverse range of tokens and liquidity pools. These benefits make PanCakeSwap an attractive option for those looking to engage in DeFi activities.
PanCakeSwap is a decentralized exchange (DEX) platform built on the Binance Smart Chain (BSC) blockchain. As a DEX, it allows users to trade digital assets directly with each other without the need for intermediaries like traditional exchanges.
The underlying technology behind PanCakeSwap is an automated market maker (AMM) model, specifically using the concept of liquidity pools. Liquidity providers deposit their assets into these pools, which are then used to facilitate trading on the platform. In return, they receive liquidity provider (LP) tokens representing their share of the pool.
Trades on PanCakeSwap are executed against these liquidity pools, rather than relying on order books like centralized exchanges. This means that users can swap tokens instantly and efficiently, with prices determined by a mathematical formula based on the ratio of tokens in the pool. Lending and borrowing functionality is also available, allowing users to earn interest on their deposits or borrow against their collateral.
The Binance Smart Chain is a blockchain network that runs parallel to Binance Chain. It uses a consensus mechanism called Proof of Staked Authority (PoSA) and offers fast and low-cost transactions. PanCakeSwap leverages this blockchain, taking advantage of its speed and scalability to provide a seamless trading experience for its users.
Overall, PanCakeSwap offers a decentralized and efficient way to swap, trade, and provide liquidity for various digital assets. Its integration with the Binance Smart Chain enhances its transaction speed and affordability while maintaining the security and transparency offered by blockchain technology.
DIA employs a comprehensive approach to gather trade data from various sources, including decentralized finance (DeFi) and non-fungible token (NFT) exchanges. The process of fetching trade data differs depending on the type of exchange.
For centralized exchanges like Coinbase, Kraken, and Binance, DIA utilizes scrapers to directly collect trades from the exchange databases. This is done using Rest APIs or WebSocket APIs, with data collection frequencies varying from 1 to 7 seconds, depending on the exchange. By retrieving data as close to the source as possible, DIA ensures high precision in the collected information.
In the case of decentralized exchanges, DIA retrieves data from various blockchains by subscribing to swap events in liquidity pools. This approach enables DIA to directly gather trading data from the blockchain itself, enhancing the accuracy of the information. Notable decentralized exchange sources include Uniswap, curve.finance, and PancakeSwap.
When it comes to NFT marketplaces, DIA captures live trading data by retrieving information from integrated marketplace smart contracts. The retrieval period for NFT transactions typically ranges from 20 seconds to 1 minute. By focusing on live trading data and not relying on unreliable bids and offers, DIA ensures data precision in the broader NFT market. Examples of NFT integrated exchange sources include Blur, X2Y2, OpenSea, and TofuNFT.
DIA's approach to scraping trade data from DeFi and NFT exchanges involves a robust and meticulous process that aims to provide highly accurate and customizable price feeds.
DIA has a process in place to compute trade data from PanCakeSwap and build price feed oracles. The process differs depending on the type of exchange we are referring to, whether it is decentralized finance (DeFi) or non-fungible tokens (NFTs).
For DeFi exchanges like PanCakeSwap, DIA follows a two-step process. Step 1 involves data cleaning and outlier detection. This step ensures that the price estimation process is resilient against trades with prices that deviate from the current market price. DIA applies an Interquartile Range (IR) filter to exclude data points and entire sets that fall outside an acceptable range relative to the interquartile range. This helps to eliminate outliers and ensure that only reliable data is used for building the price feed.
Step 2 involves applying price determination methodologies. DIA uses trade-based filters to compute a single USD price value for each asset. One example of such a filter is the Volume Weighted Average Price (VWAP). This methodology takes into account the volumes of trades and calculates the average price based on the weighted volumes. Another example is the Moving Average with Interquartile Range Filter (MAIR), which calculates the weighted average price for each second in a time range.
For NFT collections, the process is different. DIA determines the floor price of an NFT collection by processing the on-chain trade data in two steps. First, the data is cleansed using filters to exclude market outliers and manipulation techniques. Then, a pricing methodology is applied to determine the final price point.
DIA offers different pricing methodologies for NFT collections, including the Floor Price methodology, which provides the lowest sale price of a collection recorded on the blockchain. In addition, DIA offers the Moving Average of Floor Price methodology, which returns the moving average of a collection's floor price.
To combat market manipulation, DIA applies an interquartile range outlier detection filter to filter out malicious behavior such as wash trading. DIA is also open to discussing custom filters and methodologies to cater to specific use cases.
Overall, DIA ensures the reliability and accuracy of price feed oracles by employing data cleaning techniques, outlier detection filters, and trade-based price determination methodologies for both DeFi and NFT exchanges.
Instead of distributing pre-calculated data feeds, DIA covers the whole data journey from individual trade collection, and computation to the last mile of the feed delivery.