Hello everyone, and welcome to my blog!
In this article, I'll be comparing Uniswap and Pancakeswap, saying what I like and what I don't like about each, and then throwing a question to you, the reader, on which is better.
I hope you enjoy reading the article. And if you do, a follow would be very much appreciated!
Now let's get started!
WHAT IS PANCAKESWAP?
Pancakeswap is a "partly" decentralized exchange platform allowing users to swap, stake, LP and yield farm all in one interface.It is kind of the "swiss army knife" of DeFi, allowing you to experience all the goodness DeFi has to offer.
Pancakeswap is based on the Binance Smart Chain (BSC for short), which is a blockchain platform developed by Binance, a popular cryptocurrency exchange.
At it's peak, Pancakeswap had 5 billion USD in liquidity pools on it's platform, which is very impressive!
WHAT IS UNISWAP?
Uniswap is a truly decentralized exchange allowing users to trade and provide liquidity to the platform. It is based on the Ethereum chain, which was created by Vitalik Buterin. It is truly decentralised as no one can take control of the chain. Uniswap is the main go-to for many traders because of its decentralization and ease of use.
WHAT I LIKE ABOUT PANCAKESWAP
Low fees: Because it's based on Binance Smart Chain, Pancakeswap has significantly lower fees than Uniswap. I have never paid more than a dollar for any transaction on Pancakeswap, while I have been charged well over $50 for transactions on Ethereum chain.
Very fast swaps: Again, because of the efficiency of BSC, swapping on Pancakeswap is very, very fast.
More features: Pancakes allows you to yield farm, provide liquidity, trade and even stake your tokens, all in one platform. On Uniswap, you cannot do this.
Clean design: Pancakeswap allows you to do so much without cluttering the interface. It is very clean and easy to use.
WHAT I DON'T LIKE ABOUT PANCAKESWAP
Not truly decentralized: BSC isn't a truly decentralized chain, because transactions can be rolled back by anyone who has the admin keys. So while no one owns Pancakeswap, it isn't truly decentralized.
Not enough tools: Traders cannot easily get analysis on their pools on Pancakeswap, becasuse most analysis tools are built for Ethereum not BSC.
WHAT I LIKE ABOUT UNISWAP
Truly decentralised: Uniswap is decentralized down to it's hosting service. Nobody owns or can claim ownership of Uniswap, and Ethereum chain is equally fully decentralized.
More support: There are numerous tools built for Uniswap, much more than are built for Pancakeswap.
More volume and liquidity: This is especially important for Liquidity providers. Uniswap has far more volume than Pancakeswap, and even more liquidity.
WHAT I DON'T LIKE ABOUT UNISWAP
High fees to use: Because it is built on Ethereum chain which is usually congested, Uniswap has very high swapping fees, to the tune of over $100 for a transaction. I have been charged $50 for a $5 transaction before. Add to the fact that Ethereum chain transactions are size agnostic and then it becomes clear that Uniswap isn't meant for small traders.
No yield farming or staking: Uniswap doesn't natively support yield farming or staking. To get these, you have to use a third party dApp, which puts you at risk.
So who wins?
The answer to this is completely based on the person answering it, but left to me, I will pick Pancakeswap. It's shortfalls are not enough to take away from it's experience as a whole, and low fees are all it takes to convince most people.
Now on to you.
Which platform do you think is better? Let me know in the comments section below.
Once again, thank you very much for reading my article! If you enjoyed it, know that I will be releasing articles like this frequently. So please, follow me to be the first to know.
See you next time!
Posted Using LeoFinance Beta