PancakeSwap is an exchange application for BEP-20 tokens, functioning on an Automated Market Maker (AMM) principle. AMM enables trading cryptocurrencies against liquidity pools rather than orders. Liquidity pools are provided by users who deposit funds in return for rewards in LP (Liquidity Provider) tokens. These LP tokens can be locked up to earn CAKE. 
CAKE is a BEP-20 token and the main incentivizing asset of the platform. It can be farmed, staked, and used to vote for community proposals. Additionally, users can buy lottery tickets with CAKE to get the chance to earn the PancakeSwap tokens, BNB, and some other coins or NFTs. CAKE can be stored and traded on any platform supporting Binance Smart Chain. The PancakeSwap supply is limited to 750 million CAKE tokens. By 2022, the all-time-high recorded for the token equals $44.18, reached in early 2021.