On June 6, Binance Labs, venture capital arm of Binance, announced a strategic investment in PancakeSwap which resulted in the network’s utility and governance token, CAKE, rising by nearly 10%. Binance Labs’ investment amount is undisclosed. However, the investment aims to pave the way for the next generation of blockchain usage, such as Web3 exploration, by offering enterprise solutions, marketing and community support, as well as technical development.
Since its introduction in September 2020, PancakeSwap has attracted at least 400,000 daily active users as the leading decentralised exchange (DEX) based on the BNB Chain. According to the sources, CAKE was up 5.3% to $4.62 before dipping over 2.5% to $4.35 during the Asian trading sector, with a 24-hour trading volume of $159 million.
The CEO of Binance Labs, Bill Qian, stated:
“PancakeSwap has been leading the development and mass adoption of the BNB Chain. Given that PancakeSwap is the most widely used dApp and the DeFi project with the highest TVL on the BNB Chain, we have and will continue to provide strong support for the project.”
PancakeSwap, unlike most other decentralised exchanges, uses the BNB Chain, which employs a next-generation consensus process known as Proof of Staked Authority (PoSA) to boost efficiency. It paves the way for a variety of DeFi solutions, such as synthetics, yield farms, and wrapped asset swaps. PancakeSwap plans to use an automated market maker (AMM) approach which will allow users to swap BEP-20 tokens and trade against a liquidity pool.
Binance has recently announced the launch of BNB Chain, a decentralised public blockchain network. The BNB chain is crucial in the development of the decentralised application (dApp) sector. It offers around 1,300 active dApps in fields such as non-fungible tokens (NFT), blockchain gaming, Metaverse, and DeFi.
