Pancakeswap Fork, Uniswap Fork — DeFi Exchange Comparison

What is DeFi Exchange?

Defi exchanges are now an important aspect of the defi space which is revolutionizing the financial sector. It is one of the trending defi business models in the crypto space. It has evolved as a tool to generate a lucrative amount of revenue most efficiently. The craze for defi exchange is still topping the line attracting numerous crypto investors, cryptopreneurs, crypto enthusiasts, etc. Defi exchange is a peer-to-peer marketplace that facilitates trading and transactions without relying on the intermediaries like brokerage firms or banks. The decentralized exchanges mainly aim to solve the problems in centralized exchanges such as data breaches, arbitrary fees, etc.

Overview of Uniswap and Pancakeswap

Uniswap is the top-performing decentralized exchange protocol which was launched in the year 2018 November. It was recognized as the world’s largest exchange platform by volume that was developed on top of the Ethereum blockchain enabling users to swap ERC20 tokens. Uniswap is an open-source protocol that works differently by relying upon the automated market-maker system which eliminates the liquidity problem. Many cryptocurrency experts forecast that UNI will be traded between $65.26 and $75.21 in 2028 and the average cost is expected to be around $67.05.

With further improvisations in the defi protocol, various decentralized exchanges evolved such as Curve Finance, 1Inch, SushiSwap, JustSwap, Pancakeswap, etc. Among those pancakeswap witnessed a huge hit. Pancakeswap is one of the leading defi exchange platforms which was launched on September 2020. This protocol was built on top of the Binance Smart Chain network instead of the Ethereum which benefits from the low gas fees. According to the pancakeswap forecast price and technical analysis, the CAKE price is expected to cross an average price level of $88.48 by 2030.

What is Forking Uniswap?

In layman’s terms, the concept of forking is nothing but creating an independent copy of the repository and making modifications without impacting the upstream repository. In this case, forking uniswap is forking the existing smart contract of uniswap, extracting the features and functionalities of uniswap, and doing some modifications with the front-end by adding advanced features and integrations based on the needs. SushiSwap is the user-friendly fork of the uniswap protocol. The main purpose of forking uniswap is to start a distinct defi platform similar to that of uniswap. If you wish to develop a defi exchange protocol exactly like uniswap, then you can go ahead with the uniswap clone solution which replicates all the features and functionalities of the platform.

What is Forking Pancakeswap?

Forking pancakeswap is the process where the copy of pancakeswap’s smart contract, makes a change to the hash code and replaces them. Further various basic trading modules can be added and the contract can be deployed on the binance smart chain network. The contract version type can be renamed for future upgrades and more defi modules like pools, farm, IFO, lottery, etc. Further customizations can be added to the front-end features and other third-party integrations. Pancakeswap is the fork of uniswap which utilizes the AMM system. Entrepreneurs who are interested in creating their defi platform similar to pancakeswap can opt for pancakeswap clone which is a custom solution that functions equivalent to pancakeswap.

Uniswap Fork Vs Pancakeswap Fork

Uniswap and pancakeswap have distinct features that make both the defi protocol unique and the best performers in the world of defi.

The following are the key characteristics of Uniswap (UNI):

• Uniswap is a completely open-source protocol that enables anyone to leverage it to build their own defi platform.
• Uniswap works differently from traditional exchanges by utilizing the automated market maker (AMM) protocol which improves liquidity in the platform.
• Uniswap imposes a transaction fee of about 0.3% for trading tokens in the platform which is high as it is developed on the Ethereum blockchain.
• Uniswap has its native token (UNI) which allows the tokens holders to gain governance rights and vote for the changes in the network.
• The user interface of uniswap is user-friendly and makes it easier to connect crypto wallets, swap, and deposit crypto in the liquidity pool.

The following are the key characteristics of Pancakeswap (CAKE):

• Pancakeswap also uses an automated market maker (AMM) protocol which allows the liquidity providers to earn rewards.
• The transaction fee in pancakeswap is about 0.25% per trade as it is built on the BSC network which is better than uniswap.
• Pancakeswap has its native token CAKE which helps in incentivizing the liquidity provision of the platform.
• Pancakeswap has attracted a loyal following through various incentives like yield farming, lotteries, IFO, voting, etc.
• Pancakeswap provides new features such as referral programs, burn mechanics, auto-compounding in pools, customizable cake mining logic, etc.

Conclusion

To conclude, this article covers the basic overview of forking uniswap and pancakeswap which enables the development of a distinctive defi platform. Owing to the revolution in defi protocol both uniswap and pancakeswap will play a big part. Even though centralized exchanges dominate the crypto market, the increasing demand for decentralization has created some space for defi exchanges to stay. Looking closer into the defi protocols the lucrative revenue streams of the defi applications have garnered the attention of global crypto investors. Even many novice traders are keen on building their defi platform to extend their presence in the crypto sector.