What are the similarities and differences cake vs bake crypto apps? You may have come across terms like Cake and Bake crypto quite often and wonder what these actually mean.
These two are distinctly different types of tokens that come with distinctly different features and applications, though there are some similarities between them that are worth mentioning.
This article will throw some light into it and clear all of your doubts regarding these terms and their use.
Cake and Bake crypto may sound very strange but that is only to those people who are ignorant about the intricacies and nuances involved in the crypto industry and the jargon used in it.
However, to know about these tokens more, you will need to know about the apps that use these tokens more than the tokens themselves.
Typically, the Cake tokens are used by PancakeSwap and the Bake tokens are used by the BakerySwap app for trading.
Once you go through this article you will surely not belong to that group anymore.
The best thing is that such knowledge will surely boost up your confidence by a great deal and you will be able to make the right trading and investing decisions when it comes to a particular type of crypto.
It will make your crypto trading and investing strategies more productive and effective. Check out Differences Between Trading and Buying Crypto.
Cake vs Bake crypto Apps: The Similarities
In order to have an in-depth knowledge about Cake and Bake crypto, you will first need to know the similarities between the two apps that use these different tokens.
Typically, both $Cake or PancakeSwap and $Bake or BakerySwap are market-based applications and both of these applications are essentially built on the Binance Smart Chain.
This is the primary reason that both these applications trace BNB so closely. This means that the success of BNB will also be the success of the Cake and Bake crypto tokens at the same time.
PancakeSwap and BakerySwap are SaaS supported platforms. And, since both these applications are built on the Binance Smart Chain, these typically have integrations with other platforms and both these platforms have decentralized exchanges and cryptocurrency exchanges.
Also, both these specific applications are funded by the Binance fund worth $100 million and both of them have NFTs.
Both PancakeSwap and BakerySwap apps come with features that will allow you to stake your tokens and add them to the liquidity pools.
Cake vs Bake crypto apps: The Differences
However, that is where all the similarities between them end. Now, take a look at the major differences.
As for the Cake crypto token, you can consider it to be good enough since you will not see any major corrections in it often. This indicates that Cake or PancakeSwap is still growing. Most of the decentralized finance traders prefer using this platform for trading.
On the other hand, people who are long Bake prefer the BakerySwap app because it is good for NFTs of Non-Fungible Tokens which is not as big a thing in the PancakeSwap app. The BakerySwap app is however preferred more by the crypto traders especially.
Safety and Security
The BakerySwap network is quite secure to use because it comes with an intelligence system and real-time security monitors that enhances its security and safety aspects.
These advanced security systems can do on-chain monitoring and ensure that every trade and transaction passes through multiple security checks.
The PancakeSwap app is also safe and secure but the safety is ensured in a different way. This platform does not hold the coins in large hot wallets directly being a non-custodial decentralized exchange platform.
In addition to that, in order to further fortify its security system, this platform also has third-party audits conducted by reputed cybersecurity firms to ensure that the users always get enterprise-level security when they use this platform for trading purposes.
There are also a lot of other security features added to this platform by the developers which has kept this platform from being hacked in spite of being comparatively new. These features include CertiK’s Security Oracle and CertiK Shield, Virtual Machine, and DeepSEA.
The Working Process
The working process of the next iteration of Uniswap BakerySwap is pretty much similar to the working process of Uniswap but it is much faster since it is the upgraded version of it.
Moreover, the rewards that it offers to its users and liquidity providers in the form of its unique Bake tokens can be used for voting in the governance process of the platform apart from earning a share of the trading fees of this platform.
In contrast, the working process of the PancakeSwap app is based entirely on the Automated Market Maker or AMM model. This market maker model typically does not depend on an order book in order to match the buyers and sellers on this platform for trading purposes.
Rather, this model allows the platform to leverage complex algorithms and the liquidity pools in order to link the two parties involved in a trade much more efficiently and directly.
Typically, the Automated Market Maker model works much faster which reduces the trading time and offers much better rates. It also reduces slippage, one of the most significant benefits provided by this unique platform.
The Liquidity Pools
While using the PancakeSwap app, the users can receive Liquidity Provider tokens as and when they provide liquidity to the pools as a reward. The value of these specific reward tokens gets appreciated simultaneously when the value of the pool rises overall.
These liquidity pools are basically permissionless and allow the users to earn without needing to trade their assets directly. As of now, there are more than 69 different types of liquidity pools that you are allowed to stake on this particular platform.
With such a diverse range of pools the users can earn an APY ranging between 23.52% and 378.19% on an average. It is needless to say that all these rewards are paid out in Cake, the native token of this platform.
In contrast, the initial liquidity pools of the BakerySwap app come in only two specific variants, one that has Bake rewards and one that does not.
The main intention behind having just two liquidity pools is to make it easy for the community to create new liquidity pools. One significant aspect that you need to note in this regard is that only the selected liquidity pools will get the Bake rewards.
Apart from that, the reward multiplier will also be different for each and it will be typically based on the value provided to the token holders by the platform.
PancakeSwap is the biggest decentralized exchange platform that is built on Binance smart chain.
In comparison, the BakerySwap app is the first automatic market chain that operates on the Binance protocol.
Both these apps, PancakeSwap and BakerySwap can be integrated with other wallets and tools. However, as for $Cake it can be integrated with Math Wallet, TokenPocket, AstroTools, B21, CoinCodex, CryptoTaxCalculator, MetaMask, Newscrypto, QDAO DeFi, apart from Binance Smart Chain.
On the other hand, the Bake tokens are designed and work only on Binance Smart Chain mainly.
When it comes to providing support to the users, PancakeSwap lags a bit behind since it does not have any online mode of support.
BakerySwap, on the other hand, has an efficient and knowledgeable team to provide adequate online support to its users.
Years of Existence
The PancakeSwap app has been in the market and in use for a number of years now and therefore is a bit more popular.
The BakerySwap app, on the other hand, is relatively young in comparison and therefore comes with a more bullish and a much better growth prospect.
$BAKE, the token of BakerySwap, has a limited supply which is capped at 144,606,918 in total.
In comparison, as for the token of PancakeSwap $CAKE, the supply is unlimited.
As of now there are a lot more pairs offered by $CAKE to the traders to use while trading.
On the other hand, the number of pairs offered by $BAKE is not much as of now.
There is also a significant difference in the market cap of these two tokens. In fact, the market cap of Cake is over 5 million dollars.
In comparison, the market cap of Bake is well under 5 million dollars but that is due to the fact that it has been in the market for a lesser number of years than Bake.
The PancakeSwap app is designed on the Uniswap model but is a much cheaper but upgraded version of it.
Alternatively, the BakerySwap app typically represents the Automated Market Chain model.
Which is Better – Cake or Bake Crypto Apps?
As said earlier, the PancakeSwap app is one that traders who favor decentralized platforms should find more convenient to use while BakerySwap is suitable for the crypto traders.
However, this should not be the only factor for you to make a choice between the two apps.
Though it is hard to say that one of the two is better and the other is not worth considering, a few important and additional facts about the two apps would surely help you to make a final decision.
The PancakeSwap app acts as a DEX or Decentralized Exchange that works on a Binance Smart Chain. This means that it is its decentralized feature that makes it act as an intermediate between the trading process and the trader.
The most significant and unique aspect of this app is that you can earn rewards as well as boost the liquidity price using this platform that is based on Ethereum.
The entire process works on DeFi or Decentralized Finance. All these features make the trading cost quite low on this platform.
The PancakeSwap app is typically operated by one single corporate entity for trading with the Cake tokens on the decentralized exchanges.
In fact, its main competitor is the Ethereum decentralized exchanges and the trading process is facilitated by the automated smart chains.
This specific platform that is run by the Binance crypto exchange ideally utilizes fueled liquidity pools. The features and design of this app is unique and it allows the users to smartly lock their tokens while trading.
You will not have to pay any transaction fees or commissions to this largest decentralized exchange platform which is the biggest benefit offered by PancakeSwap.
All trading and transactions can be made without needing any middleman to intervene.
Another unique aspect of the PancakeSwap app is the way in which it allows the users to get rewarded. It is through the Syrup pools.
Typically, when you use this particular app for crypto trading, you will feel like the entire process is like a game.
This is due to the unique lottery feature of this app. This feature allows the users to purchase some tickets with which they can win a windfall.
There are also several other different ways in which users can win rewards while using this specific app.
Apart from that, the Initial Farm Offering made by this platform allows the users to purchase new coins from a new project as well.
You will also be comfortable using the BakerySwap app, which is in fact the first crypto trading platform made on Binance Smart Chain. This app is also the first that used AMM or Automated Market Maker.
Apart from that, the app also follows the decentralized protocol. The Bake token that this platform uses for trading is also quite unique as a medium for exchange.
The primary reason behind it is that this token is built on the principle of Uniswap with an intention to expedite the trading process as well as make it cheaper at the same time.
This particular application, which is also the first model Binance Smart Chain, can trade with exchanges in its unique way with its unique token called Bake.
The upgraded version of Uniswap makes this platform a favorite among the beginners in the crypto world due to its ease in use.
In the process, the users usually need to provide liquidity which makes them eligible to earn the Bake token in return as a reward.
The platform has many different categories in which it rewards the users who provide liquidity.
The Automated Market Maker model of this decentralized and sovereign organization can also be used by the users to create unique Non-Fungible Tokens or NFTs. These are however a collection of its unique Bake tokens.
Crypto traders also consider this specific app to be a good one to use as a farming tool for the Bake tokens. However, during the initial farming period you will be offered quite a low share of the Bake tokens.
You must keep this in mind if you intend to use it as a farming tool. This is done in accordance with the decentralized finance protocol.
This being a cheaper mode as compared to Uniswap, the platform does not offer any pre or post mode while trading the coins.
However, you may expect to earn the maximum amount in rewards when you use this platform for crypto trading.
This favorite medium of exchange of the crypto traders typically comes with two distinct liquidity pools, one of which is with Bake rewards and the other without them.
Now that you know the difference between Cake and Bake crypto tokens and about the respective apps that use them, it will be easier for you to choose one platform that will meet all your trading needs most efficiently.