Earn trading fees

Providing liquidity gives you a reward in the form of trading fees when people use your liquidity pool. Whenever someone trades using PancakeSwap Liquidity, the trader pays a 0.25% fee, of which 0.17% is added to the Liquidity Pool of the swap pair they traded on.

For example: There are 10 LP tokens representing 10 CAKE and 10 BNB tokens. 1 LP token = 1 CAKE + 1 BNB Someone trades 10 CAKE for 10 BNB. Someone else trades 10 BNB for 10 CAKE.

The CAKE/BNB liquidity pool now has 10.017 CAKE and 10.017 BNB.

Each LP token is now worth 1.00017 CAKE + 1.00017 BNB.

To make being a liquidity provider even more worth your while, you can also put your LP tokens to work whipping up some fresh yield on the CAKE Farms, while still earning your 0.17% trading fee reward.