Using Ethereum with Pancake Swap and the Crypto Crash?

Kevin Whitsitt

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3y ago 6:12

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Click on the link below for the full blog post...

https://www.trustthelink.com/can-i-use-ethereum-on-pancakeswap

Hey, today I want to talk about using Ethereum with pancake Swap. A little about how pancake swap works and a little about how Luna crashed the crypto market. Pancake swap is a DEX (Decentralized Exchange).

You could think of a DEX is like a central exchange such as Coinbase but instead of 1 company running it, it's computer code. It's decentralized. In order for a DEX to work it needs money.

By investing in the DEX someone can earn some nice rewards. This is called Yield farming or liquidity mining. PancakeSwap runs on the Binance Smart Chain so in order to use Ethereum on PancakeSwap you would need to use a bridge to swap Ethereum ERC20 tokens to BEP20 tokens that run on the Binance Smart Chain.

If you click on the link below there is a post where I walk you through exactly how to do this. You could also go to trustthelink.com. The good news about Pancakeswap being on the Binance Smart Chain is there are fewer fees than Ethereum.

Uniswap is a DEX that runs on Ethereum with expensive gas fees. Sushiswap is another one that offers swaps, crypto lending/borrowing, and farming of yields. Farming of yields means when someone provides liquidity to the DEX and gets rewarded.

I also wanted to talk about the recent crypto crash that took me some time to wrap my head around. Hopefully, I can explain it in a way that is simple and much quicker. Terra Luna sold around 750 million dollars of Bitcoin, which caused the price of Bitcoin to shut down. This caused all the other cryptocurrency coins to drop like Ethereum. The whole market somewhat crashed.

The reason Terra sold their Bitcoin holdings was to fund their stable coin UST. 1 UST is supposed to equal 1 dollar but it's based on an algorithm (computer program). UST is paired to the coin LUNA with a mint and burn system.

This means 1 dollar in Luna can be converted to create 1 dollar in UST. If UST is trading above 1 dollar then this motivates holders to burn $1 of UST and turn it into Luna and they could earn some quick money.

This then drives the price of UST back down to $1. Well shit, somehow UST fell below $1 to as low as 0.26 cents at a time. The million-dollar question is how this happened? Some feel it was a coordinated attack.

A single wallet dumped almost 200 million of UST, but nobody knows how UST fell so low. Maybe Warren Buffet or Charlie Munger held the wallet that sold all the UST - I'm Joking! If you have a long-term horizon with crypto for years and years I'm sure it will come back, not nobody knows.

Hopefully, that was helpful. To learn more about this click the link in the description or go to trustthelink.com. I also go over other DEX's where you can earn money. I”m curious have you experimented with liquidity mining or yield farming? If so, what is your favorite project?

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