PancakeSwap is a decentralized exchange (DEX) and automated market maker (AMM) on the Binance Smart Chain. Users can swap BEP20 tokens, provide liquidity, and earn fees through farming. Liquidity provider (LP) tokens, known as FLIP, allow users to participate in the pools and earn rewards. Additionally, users can stake CAKE to earn more CAKE or tokens from other projects, making it a versatile DeFi platform.