If you are a crypto enthusiast or a new crypto trader, you might be curious about what is V2 in PancakeSwap, what its fees are, or what trading options you can find in it.
This page covers everything about PancakeSwap V2.
So read this out and equip yourself with the knowledge you need to gain benefits in the crypto world.
PancakeSwap Explained
PancakeSwap is a digital platform where people trade cryptocurrencies without the need for traditional intermediaries, such as exchanges.
Think of it as a marketplace on the internet for swapping different digital coins. It operates on the Binance Smart Chain, a sort of digital highway for cryptocurrencies.
Why is it called PancakeSwap? It’s just a fun name, much like how some websites have catchy names to stand out.
The unique feature of PancakeSwap is that it allows users to provide liquidity or put their own coins on this platform and earn rewards. So, beyond just trading, it offers ways to earn too.
What is V2 in PancakeSwap?
V2 in PancakeSwap, or PancakeSwap V2 is like an updated version of the original PancakeSwap, much like when your favorite app gets an update on your phone. It operates on the Binance Smart Chain, which is a system where digital coins are exchanged.
So, why was this update needed? To offer users even better tools and features for trading!
Let’s take a glance at some important statistics that define the popularity of Pancake Swap V2.

Features of V2
What does PancakeSwap V2 bring to the table? Let’s check out.
- Improved User Experience: It’s designed to be more user-friendly, making it easier for everyone to navigate and trade.
- Enhanced Security: Safety is a priority, and this version introduces advanced measures to keep users’ funds safe.
- Optimized Performance: Trades and transactions are faster and more reliable, ensuring users don’t face unnecessary delays.
- New Reward Mechanisms: Users can earn rewards in different ways, which wasn’t possible in the previous version.
PancakeSwap V2 provides a more streamlined, secure, and efficient platform for users wanting to trade digital coins on the Binance Smart Chain.
PancakeSwap V2’s Recent Performance
Lately, PancakeSwap V2 has seen some fluctuations in its metrics. Its User Active Wallet (UAW) count is at 45.18k, witnessing a decrease of 4.12%.
You might wonder, “What about the number of transactions?” They’ve dropped by 9.34%, totaling 123.22k.
Well, not everything is on the decline. The total trade volume has increased by 1.36%, reaching $48.82 million.
The overall balance on the platform has slightly decreased by 1.27%, now standing at $62.78 million.
These numbers provide a snapshot of PancakeSwap V2’s current activity and health in the ever-evolving world of digital currency.
If you want to know how well PancakeSwap V2 performed during the last year, you can check out the image below –

[Note: the stats are according to October 19, 2023]
PancakeSwap V2’s Approach to Crypto Trading
PancakeSwap V2 is a decentralized platform, kind of like an open marketplace where anyone can come in and list their digital coins.
But there’s a catch: they need to have enough backing funds (liquidity) for the coin they list. Because of this openness, the number of coins available keeps changing.
There are over 3,900 trading pairs on PancakeSwap V2 right now. Let’s get to know some more interesting facts about PancakeSwap V2.
A Special Token: CAKE
Every platform has its superstar; for PancakeSwap, it’s the CAKE token.
Think of CAKE as the VIP pass of PancakeSwap. It’s used for various activities, like paying fees or earning some extra income on the side.
If you’re curious about the current value of CAKE or more details, there are resources available to explore.
Unique Trading Options in PancakeSwap V2
PancakeSwap V2 brings a special kind of trading to the table: perpetual futures contracts. Now, what’s that?
These contracts allow you to agree on trading a coin at a future date. There are two ways to approach this:
- Lite Mode: If you’re new to the world of crypto trading, this mode is for you. It keeps things straightforward.
- Advanced Mode: For the experts in the house, this mode offers a deeper dive into trading. Feeling adventurous? You can even trade with up to 200 times your original amount.
Straightforward Fees
When you trade on PancakeSwap V2, the fee is a simple 0.25% of your trade. Unlike other places where the fees might change based on various factors, here, it’s fixed.
And guess what? A part of this fee (0.17% to be exact) goes back into supporting the very coin pairs people are trading.
PancakeSwap V2 offers a unique, open, and simplified approach to crypto trading, making it a go-to choice for many in the digital currency world.

Decentralized vs. Centralized Crypto Exchanges
Cryptocurrency exchanges have become central platforms for buying, selling, and trading digital assets. They are largely classified into decentralized (DEX) and centralized (CEX).
Both have their unique features, advantages, and disadvantages.
i. Decentralized Exchanges (DEX)
Decentralized Exchanges (DEX) like PancakeSwap V2 offer a platform where traders deal directly with one another without an intermediary. In this peer-to-peer system, no third party is holding onto your funds.
When you trade, your coins are swapped from your digital wallet directly to another user’s wallet. Think of it as bartering or swapping collectibles with a friend; no shopkeeper is involved.
ii. Centralized Exchanges (CEX)
Centralized Exchanges (CEX), on the other hand, operate more like traditional banks or stock exchanges. When you trade on a CEX, the platform itself takes custody of your funds.
You deposit your coins into an account on the exchange, conduct your trades through the platform, and then withdraw your funds once you’re done.
While they offer enhanced features and might be easier for beginners, they also come with the risk of hacks, as they are more lucrative targets for attackers.
The following table will provide a snapshot of the differences between DEXs and CEXs, making it easier for you to make informed decisions based on your preferences and risk tolerance.
Feature | Decentralized Exchange (DEX) | Centralized Exchange (CEX) |
Trading Mechanism | Direct peer-to-peer trading | Through the platform itself |
Funds Custody | Users maintain control of their funds in their own wallets | Exchange holds users’ funds |
Security | Lower risk of large-scale hacks (no central point of failure) | Risk of exchange hacks (central point of attack) |
Liquidity | Can be lower than CEXs | Typically higher due to a larger user base |
User Experience | Might have a steeper learning curve | More user-friendly, often with better interfaces |
Fees | Generally lower | Can be higher, with withdrawal and deposit fees |
Regulation | Often less regulated | More regulated, may require user identification |
Trading Options on PancakeSwap V2 – Base and Quote Currencies
When people trade on PancakeSwap V2, they often choose specific digital coin pairs. But which pairs are they picking?
Knowing this can help us figure out which coins are popular and busy. So, what exactly are “base” and “quote” currencies?
In simple terms, when you trade two coins, the first one you mention is the “base” and the second is the “quote”. For instance, in BTC/USDT, BTC is the base, and USDT is the quote.
Look at the image below to see which pairs are getting a lot of attention on PancakeSwap V2.

Opportunities on PancakeSwap V2
PancakeSwap V2 isn’t just for trading; it’s a versatile platform where you can do more:
- Syrup Pools: Stake your CAKE tokens to earn passive income, much like earning interest on your savings.
- Yield Farms: Staking LP tokens can also earn you rewards, depending on how long you keep them staked.
- Liquidity Provider: By staking tokens in liquidity pools, you help keep the platform running smoothly and earn fees as a thank-you.
- Fun and Games: Join lotteries and games to make predictions about token prices. If you’re right, you win more tokens.
- NFT Marketplace: Craft, purchase, or trade NFTs. Remember, there are fees, and some of these fees are used to purchase and then burn CAKE tokens weekly to uphold their value.
PancakeSwap V2 offers various ways to engage with digital assets, from earning passively to enjoying games and exploring the NFT world. It’s a versatile platform for a range of interests in the digital currency space.

Wrapping Up
PancakeSwap V2 is your gateway to the exciting world of digital assets.
Now, you understand what is V2 in PancakeSwap and what it truly entails – a powerful platform with enhanced features and opportunities.
Take the knowledge gained here and begin your crypto journey with confidence. Embrace the future of trading with PancakeSwap V2.
Frequently Asked Questions (FAQs) About PancakeSwap V2
1. Who Are the Founders of PancakeSwap V2?
The founders of PancakeSwap V2 remain anonymous, leading a team of approximately two dozen anonymous “Chefs” who work on the platform. The exchange operates as an open-source project and has undergone security audits by well-known firms like Certik and Slowmist.
2. When Was PancakeSwap V2 Launched?
PancakeSwap V2 made its debut in September 2020.
3. Where Is PancakeSwap V2 Based?
PancakeSwap V2 operates as a decentralized exchange, which means the team works remotely. However, according to information from Crunchbase, PancakeSwap is associated with a headquarters in Fukuoka, Japan.
4. Which Countries Are Restricted on PancakeSwap V2?
PancakeSwap V2, being a decentralized exchange, does not have restricted countries. Certain regions have been blocked, including Cuba, Iran, Zimbabwe, Iraq, Crimea, Syria, Sudan, Belarus, and the Democratic Republic of Congo.
5. Which Coins Are Supported on PancakeSwap V2?
PancakeSwap V2 allows the trading of all BEP-20 tokens. Additionally, users can trade popular futures pairs like BTC/USDT, ETH/USDT, BNB/USDT, and other major layer-one blockchains.
6. Can I Use Leverage or Margin Trading on PancakeSwap V2?
Yes, PancakeSwap V2’s perpetual futures exchange offers leverage options. Users can trade with leverage of up to 150X on major trading pairs and up to 50X on smaller trading pairs.