CakeSwap Token Listed on Hotbit and Finexbox, Two Major Cryptocurrency Centralized Exchanges
PR.com
2021-11-27
Miami, FL November 27, 2021 --(PR.com)-- CakeSwap was successfully listed on Hotbit and Finexbox on the 11th of November. The Deposit and Trading Functions were launched on the same day, but with a 2-hour gap between the two launches.
At the time of this writing, CAKESWAP/USDT pair is trading at $0.012 on Hotbit; CAKESWAP/BTC pair is trading at 0.00000035 BTC on Finexbox.
What is a Centralized Exchange?
A centralized exchange's services are comparable to those provided by a bank. The bank safeguards its clients' cash and provides security and monitoring services that people cannot supply on their own, making it easier to transfer funds.
Because they are regulated businesses that custody users' cash and provide easy-to-use platforms for novices. Centralized exchanges account for the vast bulk of trading volume in the cryptocurrency market. Some centralized markets even give deposit insurance.
On the other hand, decentralized exchanges allow users to trade directly from their wallets by engaging with the smart contracts that power the trading platform. Traders are responsible for their funds and are liable for their loss if they make mistakes like losing their private keys or sending funds to the wrong locations.
CAKESWAP is a native utility token of CakeSwap Decentralized Exchange (DEX), it's used for a variety of purposes within the growing landscape. Its main functions are yield farming and staking.
How does a Decentralized Exchange Work?
Since decentralized exchanges are built on blockchain networks that allow smart contracts, users retain custody of their assets. Each trade incurs a transaction cost in addition to the trading fee. To use DEXs, traders interact with smart contracts on the blockchain.
Decentralized exchanges are classified into three types: automated market makers, order books DEXs, and DEX aggregators. Through their smart contracts, all of them enable users to trade directly with one another. Cakeswap falls into the automated market maker (AMM) category.
Automated Market Maker (AMM)
An automated market maker (AMM) is a decentralized exchange system that prices assets using a mathematical formula. Assets are valued using a pricing algorithm rather than an order book as in a typical exchange.
DEXs, as opposed to centralized exchanges, seek to eliminate all intermediate processes required in cryptocurrency trading. They are not compatible with order matching systems or custodial infrastructures (where the exchange holds all the wallet private keys.) As a result, DEXs encourage user autonomy by allowing them to initiate trades directly from non-custodial wallets (wallets where the individual controls the private key).
Furthermore, DEXs use autonomous protocols known as AMMs to replace order matching systems and order books. Smart contracts — self-executing computer programs – are used in these protocols to specify the price of digital assets and offer liquidity—the protocol pools liquidity into smart contracts in this case. In essence, users are not trading against counter-parties but rather against the liquidity contained inside smart contracts. These smart contracts are frequently referred to as liquidity pools.
CAKESWAP Tokenomics
Tokenomics is extremely important for a cryptocurrency as it highlights a token’s possible worth in the future. It also helps in understanding the supply and demand characteristics of a crypto asset.
CakeSwap's tokenomics system apply a 2% reward on every buy or sell and is redistributed to all CakeSwap holders. In addition, an 8% liquidity pool on every transaction helps promote price stability and a 3% marketing wallet that ensures the company's ability to cover marketing expenses.
Final Verdict
The first decentralized exchanges surfaced in 2014. These platforms gained strength only when decentralized financial services built on blockchain acquired traction. Furthermore, AMM technology helped alleviate the liquidity difficulties that DEXs previously experienced.
Following the new trends established by Uni, Cake and Sushi, another gem has emerged CAKESWAP token.
Contact Information:
CakeSwap
Manny Trujillo
+1-833-816-0342
Contact via Email
www.cakeswap.exchange
Read the full story here: https://www.pr.com/press-release/849994
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