> For the complete documentation index, see [llms.txt](https://docs.pancakeswap.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.pancakeswap.finance/trade/pancakeswap-exchange.md). # Swap ![](https://2908774936-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-MHREX7DHcljbY5IkjgJ-1972196547%2Fuploads%2FjiEPzgrAvaNX5kRYrir8%2Fpancakeswap-exchange-header.png?alt=media\&token=7c837ce5-2538-4564-ae38-5688d38c4c21) PancakeSwap is an Automated Market Maker (AMM), and the Exchange is at the heart of PancakeSwap. PancakeSwap is the leading AMM on the BNB Smart Chain, and as statistics tell, the most popular Decentralized Exchange (DEX) ever! The PancakeSwap Exchange offers several features that support decentralized trading: ### Swapping/Trading PancakeSwap lets users trade without the need to go through a Centralized Exchange. Everything you do on PancakeSwap is routed directly through your own wallet—no need to trust someone else with your coins! ### Liquidity Pools You can only swap tokens on PancakeSwap if there is enough liquidity for those tokens. If nobody has added much liquidity for the token or tokens you want to swap, it will be difficult, expensive, or impossible to do so. Providing liquidity will get you LP Tokens, which will earn you rewards in the form of trading fees for making sure there's always liquidity for the exchange to use. ### Yield Farming Yield farming lets users that are providing liquidity earn CAKE rewards by locking their LP tokens into a smart contract. The incentive is to balance out the risk of [impermanent loss](https://academy.binance.com/en/articles/impermanent-loss-explained) that comes along with locking in your liquidity. ### Initial Farm Offerings (IFOs) An Initial Farm Offering is an event that lets users buy into a limited-time offer to purchase new tokens. The IFO price is usually very generous. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation by asking a question. Perform an HTTP GET request on the following URL with the `ask` and `goal` query parameters: ``` GET https://docs.pancakeswap.finance/trade/pancakeswap-exchange.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is what the user is ultimately trying to achieve, the reason they need the answer. Sharing it helps GitBook give you a better, more relevant answer. A goal is most helpful when it describes the outcome the user wants rather than restating the question. For example, with `ask=how do I create an API token`, a goal like `automate deployments from our CI pipeline` lets GitBook tailor the answer to that use case. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.