Token swaps on PancakeSwap are a simple way to trade one BEP-20 token for another via automated liquidity pools.
Simple Swap UI
The liquidity provided to the exchange comes from Liquidity Providers ("LPs") who stake their tokens in "Pools". In exchange, they get FLIP (PancakeSwap Liquidity Provider) tokens, which can also be staked to earn CAKE tokens in the "farm".
When you make a token swap (trade) on the exchange you will pay a 0.2% trading fee, which is broken down as follows:
0.17% - Returned to liquidity pools in the form of a fee reward for liquidity providers.