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Cake Rallies BNB Rallies

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@azircon
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Deep Into Pancake

As I have written the last few times, I am getting a bit interested into Binance Smart Chain's Pancakeswap. Since the last discussion I have removed liquidity from the USDT-BUSD pool and moved everything into CAKE-BNB pool. The reason is very simple. I looked at the chart of both CAKE and BNB token, and both are on fire.

On a LP, when both side performs well, there is no stopping the pool. The story behind CAKE and BNB is simply because that they have many different LPs. Each pool buys BNB, and gets paid in CAKE. So there are literally hundreds of individual pairs that is required to do transaction on these two token. The result is this particular pool is the most popular at BSC.

As you can see that between doing two screen capture the liquidity moved from $73.6 M to $74.6 M. That is how fast this pool is growing. Now, I am fully aware that faster they go up, faster they fall. But this is a small amount of money for my net worth, so I can take this risk easily. I will continue to add liquidity into this pool and see what happens. It cake drops to $1 or so, which is par on my books. I will add substantial money to this pool.

Disclaimer: This is NOT professional advice, this is all just my own opinion and experience. I am NOT a Certified Financial Adviser. Consult professionals for any financial, accounting or legal related questions you have.

Charts are created in Tradingview.com, which is a free service.

Posted Using LeoFinance Beta