This new partnership for PancakeSwap users on the BNB Chain means…

This new partnership for PancakeSwap users on the BNB Chain means…

  • PancakeSwap users can now access additional rewards when using the BNB Chain.
  • The development could change the case of the project’s TVL which decreased in the last 24 hours.

Decentralized crypto exchange PancakeSwap [CAKE] announced a new partnership that would enable its users to access single-asset deposit vaults and optimize their assets for high-yield risk-adjusted returns. 

Realistic or not, here’s CAKE’s market cap in BNB terms

By the CAKE team, for users

According to the disclosure provided by the project, the updates would only be available to its users who operate on the BNB Chain. BNB Chain is fully known as the “Build N Build” Chain. As the second-largest Layer-1 ecosystem, the chain facilitates cross-chain transactions and interaction.

However, the development would have been impossible without the input of Bril Finance. PancakeSwap describes Bril Finance, a decentralized finance (DeFi) platform transforming highly sophisticated portfolio management strategies into user-friendly services.

Furthermore, the revelation mentioned how users can gain from activity using the several liquidity pools on PancakeSwap. A liquidity pool acts like a reserve. Here, users can pool their assets into DEX smart contracts to provide liquidity for traders involved in swapping tokens. 

In an exclusive press release sent to AMBCrypto, PancakeSwap noted that users can earn additional rewards with the update. The project noted that,

“Users can earn additional rewards in CAKE tokens for up to four weeks following the launch. Namely, liquidity pools such as USDT/CAKE, USDT/BNB, and BTCB/USDT will be granted 1,000 CAKE weekly, and BNB/CAKE, BTCB/CAKE, and ETH/CAKE pairs will be receiving 500 CAKE per week.”

When activity increases on these liquidity pools, the DEX volume on the BNB Chain may surge to high levels like it did in May. Also, PancakeSwap which surpassed BNB Chain’s revenue earlier could replicate it one more time.

To help its falling TVL?

While revenue may increase for PancakeSwap, topping the DEX volume charts may be difficult. This is because Uniswap [UNI] has a stronghold on the metric. It could also be largely difficult to surpass, as shown by the Dune Analytics chart below.

PancakeSwap DEX volume

Source: Dune Analytics

However, there is one area where the development can help PancakeSwap recover. That is in terms of the Total Value Locked (TVL). The TVL is a DeFi metric used to measure the total value of assets locked or staked in a protocol.

PancakSwap’s head chef, popularly known as Chef Mochi, also shared the same view. According to Mochi, the integration could bring more opportunities to the DeFi sector. He told AMBCrypto that:

“By partnering with Bril Finance, we are excited to bring additional DeFi opportunities to our users. We aim to become a hub for all of DeFi and integrations such as this, allowing us to become a one-stop shop for portfolio management.”

At press time, PancakeSwap’s TVL was $1.39 billion, equivalent to 61 million BNB. This value was a 23% decrease in the last 24 hours, meaning trust in the protocol has reduced.

PancakeSwap TVL

Source: DeFiLlama

Is your portfolio green? Check the PancakeSwap Profit Calculator

With the new liquidity pool and yield strategy, PancakeSwap could well be on its way to attracting more users. But this would also depend on the sentiment the market has toward the development.

Read More

Leave a Reply

Your email address will not be published.