PancakeSwap Token
There are so many blockchains out there already, each offering something new or different, from faster transactions to lower fees. And all blockchains are in use for one purpose or the other, hence the need for transferring assets between them.
PancakeSwap is a very popular decentralized exchange platform that has surfaced many times as the most used DeFi protocol.
Tokens offer cross-chain compatibility unlike the coin of the blockchain.
Creating a token that works on the platform offers a chance of having a wide reach from the number of users of the platform.
Creating a PancakeSwap token is low cost and there is a better chance of getting investors due to the success of the Binance Smart Chain.
Key Takeaways
• Binance Smart Chain has very high popularity and tokens are easier to create
• Swift and rapid trading on Binance Chain and decentralized app support on Binance Smart Chain can be combined
• Being part of a dual chain architecture, Binance Smart Chain offers cross-chain compatibility.
• Faster transactions with a 3 seconds block time using Proof of Staked Authority (PoSA).
• Very low transaction fees in BNB.
SEE ALSO: How to Mine PanCake on UnMineable
SEE ALSO: How Pancakeswap APR Is Calculated
What are Tokens?
Cryptocurrency Tokens and coins are similar things serving the same purpose but are not the same things. Tokens are more digital file that functions as assets that can be traded.
A crypto token is a digital asset built on an existing blockchain that can be paid for with coins. They are used with decentralized apps on the blockchain and are more of a representation of assets, which can be held or staked for interest, than a means of payment.
One of the blockchains of Binance dual chain architecture, Binance Smart Chain (BSC) is a blockchain built to accommodate smart contracts and runs in parallel to the Binance Chain which was built to boost the speed at the expense of smart contract functionality and compatibility.
About PancakeSwap
PancakeSwap is a decentralized exchange using an automated market maker (AMM) system to enable users to trade cryptocurrencies without an intermediary.
Pankcakeswap runs on Binance Smart Chain and is specifically for BEP20 tokens just like Uniswap, the DEX on Ethereum is used for swapping ERC20 tokens.
How to Create Pancakeswap Tokens
Pancakeswap operates on the Binance Smart Chain, so to create Pancakeswap tokens, it has to be BEP 20 tokens.
What is a BEP20 Token?
A BEP-20 token is a token created to operate on the Binance Smart Chain according to the BEP-20 token standard.
Very similar to ERC-20 tokens of the Ethereum blockchain, BEP-20 provides the framework for cryptocurrency tokens to be created on the Binance Smart Chain.
Creating BEP-20 tokens
A Web3 browser wallet is needed to be able to connect Binance Smart Chain, upload, hold and manage your token. You need to install a MetaMask wallet.
You are going to need a node to be able to connect to the blockchain and confirm blocks. Moralis offers speedy nodes on Binance Smart Chain and some other blockchain networks.
1. Install Custom RCP to link your Metamask to Binance Smart Chain. Metamask automatically links to the Ethereum network by default. Click the fox symbol on Metamask, then settings, and finally select a custom RCP. Fill in the following details in the entry field.
2. Network Name: BSC Testnet
• New RPC URL: (Paste in the URL copied across from the Moralis node)
• Chain ID: 97
• Currency Symbol: BNB
• Block Explorer URL: https://testnet.bscscan.com
3. Get a Testnet BNB coin in your wallet. You should have some BNB in your wallet already. visit Binance testnet to get testnet BNB coins. Paste your wallet address and click on give me BNB.
4. Get open source codes and program your adjustments since tokens are just pieces of code, you can make do with already outlined ones.
So just look for some token standard preset code that you can modify and customize. OpenZeppelin, an open-source organization offers various preset codes.
5. BSC token is created with Solidity programming code. Remix is a popular IDE for Solidity coding. Used for Ethereum, you can use it for BSC too. Go to Remix and create your smart contract.
Now proceed to program accordingly.
Specify the Solidity version used, the number of tokens to be minted, and all the rest.
6. Now compile the code to check for errors and bugs. Use the Solidity compiler.
7. Deploy your BSC token. Be sure the selected contract name and the one you created to match. Check and confirm the account address. Now click the deploy button.
You can view your tokens using BSCscan.
Or under deployed contracts in your MetaMask wallet.
SEE ALSO: How to Fix Insufficient Output Amount Error On Pancakeswap
Frequently Asked Questions (FAQs)
Q1. What is the difference between coins and tokens?
A cryptocurrency coin is a digital asset that has and operates on its blockchain. A popular one is Ether which operates on its blockchain, the Ethereum blockchain.
Tokens, on the other hand, are built on existing blockchains. They can be seen as coin denominations.
Coins cannot be directly transferred from one blockchain to another as they are native to their blockchains. To transfer between coin networks, like Bitcoin to Ethereum, one has to make use of exchanges.
Tokens, unlike Coins that are native to their blockchain, can make use of more than one blockchain for more flexibility and ease. Tether, for instance, can be found on the Bitcoin blockchain and also Ethereum blockchain.
Coins represent a means of payment or store of value, while tokens represent assets that can come in different forms.
Many tokens, with their different purposes, can share a single blockchain.
Q2. What is the cost of creating a BEP20 Token?
Creating BEP-20 tokens can cost from $5.5k to $7k inclusive of mobile apps cost. Bulliscoming, smart contract development, and auditing site can create a BEP-20 token for you for a budget-friendly price of about $1000 or more, and add liquidity on Pancakeswap.
Q3. How does PancakeSwap work?
Token swaps on Pancakeswap are controlled by Automated Market Maker (AMM) which eliminates the need for any intermediary.
Instead of matching users wanting to exchange opposite tokens together to swap their tokens, users can exchange their tokens directly from liquidity pools having a token pair.
The liquidity pool is funded by users who stake token pairs and every successful swap done from the pool earns them a percentage of the transaction fees as rewards.
Final Thoughts
Creating tokens is something that should be taken seriously and handled by experienced developers. We are talking about creating advanced functionalities in a time where attacks on Decentralized Finance can happen at any time.
So tokens have to be created adhering to best practices if they are to stand a chance to be free from potential attacks or have a safe future at all.
To avoid losing millions of dollars worth of assets to hackers over a little error, maybe in poorly developed tokens and contracts, it is advisable to leave the creation of tokens in the hands of experienced developers.
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