In a recent interview with Carlin Martin, the host of YouTube Channel “The Moon“, crypto analyst and developer Ivan Liljeqvist, who hosts the YouTube channel “Ivan on Tech“, named three cryptoassets that he is excited about.
PancakeSwap is “a decentralized exchange running on Binance Smart Chain (BSC)” with “an automated market maker (AMM) model for swapping BEP-20 tokens.”
According to Binance Research, there are three kinds of tokens you need to know about when using PancakeSwap:
- FLIP: “Similar to other AMM models, users will receive Liquidity Provider (LP) tokens in the form of FLIP tokens in return for providing liquidity towards the various liquidity pools available on the platform (e.g. one will receive BUSD-BNB FLIP tokens in return for providing liquidity to the BUSD-BNB liquidity pool).“
- CAKE: “LPs receive CAKE for staking their FLIP tokens.“
- SYRUP: “CAKE tokens can be staked in the SYRUP Pool to earn SYRUP. SYRUP holders will earn a portion of 25% of each CAKE block reward and give them the right to earn tokens from brand new BSC projects. SYRUP tokens can also be used for voting in platform governance, collecting fees, and the upcoming Golden Syrup lottery.“
Liljeqvist finds PancakeSwap interesting because a lot of smaller volume traders find the transaction fees on Ethereum-powered Uniswap too high and even though BSC is not as decentralized as Ethereum, these people don’t care.
1inch consists of a DEX aggregator as well as a liquidity protocol (used to be known as Mooniswap). Binance Research says that the 1INCH token is “the native ERC-20 token of the 1inch protocols and is a governance and utility token that will be used to govern all protocols developed by 1inch (starting with 1inch.exchange and 1inch Liquidity).” It also mentions that 1inch “introduces a new governance framework called Instant Governance where 1INCH token holders and key protocol stakeholders (e.g. LPs) can vote directly on protocol parameters.”
Liljeqvist says 1inch has seen a lot of growth. Why? Because for large transactions, 1inch’s higher fees (compared to, say, Uniswap) are not a big concern since by going to multiple DEXs, it can get a better “execution price”.
Polygon (formerly known as “Matic”) is “a protocol and a framework for building and connecting Ethereum-compatible blockchain networks.”
Binance Research says Matic is “a layer-2 scaling solution with side-chains for off-chain computation, while ensuring asset security using the Plasma framework and a decentralized network of Proof-of-Stake (PoS) validators” that “aims to offer scalable and instant blockchain transactions.” It also points out that “by utilizing adapted version of the Plasma framework, the system is built on PoS checkpoints that are pushed to the Ethereum main-chain.”
According to Liljeqvist, many projects are expanding to Polygon.
Featured Image by “Austin Distel” via Unsplash.com
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.