After Binance Labs, the incubation and venture capital arm of crypto exchange Binance made a strategic investment in PancakeSwap, the network’s utility and governance token, CAKE, which has once soared by nearly 10%.
As the leading decentralized exchange (DEX) built on BNB Chain, PancakeSwap’s daily active users have reached at least 400,000 since its launch in September 2020.
CAKE was up by 5.3% to hit $4.62 before dropping over 2.5%, hitting $4.35 during the Asia trading section, with its 24-hour trading volume clocking $159 million, according to CoinMarketCap.
The investment made by Binance Labs is meant to open the doors to the next wave of blockchain adoption like Web3 exploration by providing enterprise solutions, marketing and community support, and technology development.
Bill Qian, the head of Binance Labs, pointed out:
“PancakeSwap has been leading the development and mass adoption of BNB Chain. Given that PancakeSwap is the most widely used dApp and the DeFi project with the highest TVL on BNB Chain, we have and will continue to provide strong support for the project.”
Unlike most other decentralized exchanges, PancakeSwap unitizes the BNB Chain, which uses a next-generation consensus mechanism known as Proof of Staked Authority (PoSA) to enhance efficiency levels.
Therefore, PancakeSwap represents a turning point for decentralized finance (DeFi) on BNB Chain since it paves the way for many DeFi solutions, including yield farms, synthetics, and wrapped asset swaps.
PancakeSwap’s AMM model
Using an automated market maker (AMM) model, PancakeSwap enables the swapping of BEP-20 tokens and permits users to trade against a liquidity pool.
BNB Chain is a decentralized public blockchain network launched by Binance. It has played an instrumental role in powering the decentralized application (dApp) sector. For instance, it hosts more than 1,300 active dApps in different areas like non-fungible token (NFT), Metaverse, blockchain games, and DeFi.
As a result, BNB Chain has carried out at least 3 billion transactions undertaken by 163 million unique addresses since its inception in 2020.
Image source: Shutterstock
Credit: Source link
