Decentralised exchanges are platforms where users can conduct trades in a permissionless way without any intermediary. DEX tokens are used as governance tokens and for staking. They can be as a store of value. DEXs support the operations of DeFi platforms.
PancakeSwap and Sushiswap are two of the most popular DEX platforms. They are both forks of Uniswap and are also automated market makers (AMMs). In essence, users provide liquidity pools by using the platform, thereby earning rewards.
PancakeSwap was developed on Binance Smart Chain by anonymous developers and launched in September 2020. It uses smart contracts to aid the swapping of tokens. Users can swap or exchange their LP tokens for another token. Also, it supports yield farming and staking of tokens. PancakeSwap can be accessed from Metamask, Trust Wallet, Ethereum Wallet, Binance Chain Wallet, and Math Wallet.
Sushiswap was released on the Ethereum network by Chef Nomi and 0xMaki in August 2020. However, ownership of the platform has been transferred to Sam Bankman-Fried. It can be accessed through Lattice, Coinbase Wallet, WalletConnect, and Metamask. Asides from yield farming and staking of tokens, users can also borrow and lend tokens. It uses the Minimal Initial Sushiswap Offering (MISO) to support the launching of new projects in its ecosystem.
Due to being forks of Uniswap, they share various similarities. However, the cost of a transaction differs, with users paying 0.2% on PancakeSwap and 0.3% on Sushiswap. Moreover, Sushiswap is more flexible than PancakeSwap. Between the two, PancakeSwap has more traders with a market cap of $2.17 billion to $906.6 million of Sushiswap.
Likewise, PancakeSwap supports NFTs and lottery in its ecosystem. It also has a separate token for unstaking CAKE. CAKE costs $8.15 right now, and SUSHi sells for $4.7. CAKE is the better DEX token of the two, and with the continuous adoption of the DEX, it will keep growing.