Introduction

It's always a pleasure to take part in the lessons for this season. Today I want to tackle the homework post set by a professor @yousafharoonkhan on the pancake swap exchange and how to connect wallets with these exchanges.

Question no 1:

What is Liquidity in PancakeSwap? Explain with examples and add Liquidity in PancakeSwap and explain all the steps with screenshot (explain in your own words).

a) Liquidity in pancake swap is the amount of money that a person invests in a decentralized application ie. Dapp. It is a decentralized Exchange that does not have a controlling regulatory entity or an entity that controls its finances. Liquidity increases as people invest in the Exchange. The invested money goes into a liquidity fund and is locked up for a period of time only to receive rewards in future.

The liquidity pool is a collection of tokens that have been invested that provide a market for users to exchange tokens on pancakeswap.

Pancake Swap is an Exchange that runs on a decentralized model used for swapping of BEP-20 token and it is built on the smart chain using the automated Market protocol to manage the liquidity on the platform. The Exchange also allows its users to trade without interference of another entity there by giving users full control their assets and in the real sense of a decentralized Exchange helping them to directly transact on the platform with the liquidity pool.

b) To provide liquidity on pancakes swab you link the Binance Smart Chain wallet to a Trust wallet.

• First, as we add liquidity in pancake swap, we enter the pancake swap website at www.pancakewap.finance.

• Second, you add your wallet if you have not yet added it by clicking connect.

• After connecting you click on trade on the pancake swap menu.

• After that you go to the liquidity section which is the 4th on the menu and we click it.

• Liquidity will take you to your liquidity and there is the button that says add liquidity which will click on.

• Then you select the coin pairs.

• After choosing the same dollar amount for the past we click on unlock wallet as showed below.

• It will immediately take you to connect a wallet where you choose the binance chain wallet.

• After that process it will show you your added liquidity in the box down below.

Question no 2:

How to connect Binance exchange account with Binance smart chain or trust wallet. Explain all the steps through screenshot. And transfer any coin from Binance exchange to Binance smart chain.

• First, you to the Binance Smart chain page on Google and find the Binance Bridge.

• Create Wallet

If you don't yet have a wallet follow these simple steps.

• Get and copy recovery phrase to a safe place.
• Next write the key words
• Create password
• Your account will be ready in the Binance Smart chain.

Binance Chain extension wallet is a tool that can be used to interact with blockchain Networks.

I) To connect Binance Exchange to Binance Smart Chain, click on three dots in the upper right corner. It shows wallet direct.

Ii) From Wallet Direct, click Connect to Binance wallet.

III) Verify your account.

IV) After verification, log in.

v) Confirm the sign messages and show you own the account and wallet in transaction.

vi) Confirm the address and click Bind to add the Smart chain to your exchange account.

For this discussion, I will use the BEP-20
to transfer it from Binance exchange to Binance smart chain, (using BNB from Binance Exchange).

Question no 3:

What is the difference between Trust Wallet and Metamask and which of them is better and why? Explain in your own words.

Table showing difference between Trust Wallet and Metamask Wallet.

Trust Wallet	Metamask Wallet
Was developed on Ethereum Blockchain	Was developed on Binance Blockchain
Is limited to mobile gadgets	Is both a browser and mobile app wallet.
Is mostly a cold wallet	Is both cold and hot wallet.

However, the two are similar in these ways;

• Both can exist and operate within the Binance Smart Chain Wallet since the smart chain was built to accommodate Ethereum Blockchain Wallets such as Metamask.
• Both are compatible with Ethereum naming services and allow holding of Non Fungible Tokens.
• Both can be connected to Pancake swap to exchange assets, to stake and boost liquidity on these decentralized exchanges.

Which is better?

In my own view, Metamask is better because it gives easy access to DeFi through any internet browser. Metamask can be easily installed as a Google Chrome or Firefox extension and it's security features are also better.

Question no 4:

What is meant by PancakeSwap and Uniswap?

Pancake swap is a decentralized exchange built on the Binance smart chain that is as a cheaper and faster alternative to Ethereum. Pancakeswap helps users to swap or exchange between cryptocurrency assets by using the generated liquidity pools available. This centralized exchange is built on automated smart contracts that are employed on the Binance Smart Chain to run the cryptocurrency Exchange.

Uniswap is also a decentralized Exchange that uses a new type of trading model called an Automated Liquidity Protocol whereby in an automated money market you need swap facilitates cryptocurrency trade for users around the world in a system of non-upgradable smart contracts on the ethereum blockchain. Uniswap eliminates the need for third parties intermediaries and security as it is a trust-less Exchange.

In both of these platforms customer verification is not required before they can be used for exchange and customers can access both platforms by simply linking their wallets to them for instance the Trust wallet. Staking assets can also be done on both exchanges thereby contributing to the liquidity on the platform. For validation of transactions within the blockchain mining, the Proof of Stake or PoB mechanism is used on all of these platforms.

And what is the main difference between them?

Notable among the differences between Pancakeswap and Uniswap include;

Pancakeswap	Uniswap
Powered by Binance Smart Chain on Binance Blockchain	Based on the Ethereum Blockchain
Trading volume is lower compared to the two	Uniswap has higher trading volume
Less popular	Is widely used
Lower transaction fees	Slightly higher fees
Offers variety of service being on the Binance Exchange	Less variety thus higher fees
Few assets	Multiple assets.

Which is better?

I think Uniswap is better as it has high trading volumes and more assets available for the user.

Question no 5:

How to connect PancakeSwap with Metamask. Explain this with a screenshot.

Step 1

Open Pancake swap website at www.pancakeswap.finance

Step 2

Select and open Metamask wallet found in the Dapps below box.

Step 3 & 4

Choose Metamask

Step 5

Connect

Step 6

Wallet connected to Pancake swap.

Conclusion

I would like to conclude by thanking the professor who has given us the opportunity to learn about Pancakeswap and Uniswap as some of the top decentralized exchanges used on the smart chain and Ethereum blockchain.