PancakeSwap to Launch Its 3rd Version Next Month

PancakeSwap to Launch Its 3rd Version Next Month

6 March 2023

PancakeSwap, a decentralized crypto exchange, revealed on Saturday that the new iteration of its application will be available to users next month via the BNB Smart Chain.

PancakeSwap’s pseudonymous head chef, Mochi, said that the launch of new features would enhance user experience and make DeFi more accessible to people around the world. 

PancakeSwap V3 is scheduled to launch in the initial week of April and will bring a range of improvements, including reduced trading fees and streamlined liquidity provision, as stated in PancakeSwap’s official press release.

PancakeSwap also announced an incentive program that will be launched on the updated platform, which will award users free CAKE tokens if they donate a certain amount of assets to the liquidity pools on the platform.

For users who fulfill the program’s requirements regarding liquidity provisioning, they will be rewarded with a special NFT demonstrating their loyalty to PancakeSwap. However, the token is non-transferable and not saleable, and the program may change or even be canceled without prior notice.

The CAKE token is currently placed 71st among the most valuable tokens, with a market cap of nearly $700 million, as per CoinGecko’s data. During the last month, the price of this token has decreased by 9% to around $3.79 — which is a 91% decrease from its peak at about $44 in April 2021.

PancakeSwap V2 is one of the most sought-after DEXes, with a daily trading volume exceeding $84 million, as CoinGecko’s data shows. The USDT-BUSD pair is currently the platform’s best-performing one.

Recently, PancakeSwap V2 was released on Aptos and Ethereum, where it has quickly attracted $30.3 of Total Value Locked (TVL).

PancakeSwap was developed by the anonymous group and first entered the scene in September 2020. Unlike other large DEXes such as UniSwap, which are Ethereum-based, this platform is powered by BNB Chain — a self-governing blockchain developed by Binance, capable of executing smart contracts.

In the summer of 2022, Binance announced that it had made an investment of an unspecified amount in PancakeSwap. The move showed their intention to support the project in the long run.

Decentralized exchanges are different from centralized ones like Coinbase or Binance since they enable users to trade digital assets directly among themselves. This setup allows users to remain in complete control over their funds during trades.

An integral part of DEXes is incentivizing users to join their liquidity pools using automated market makers (AMMs). By participating and locking up tokens, users can receive LP tokens and then sell them.

PancakeSwap’s Total Value Locked has seen a steady decrease since the prices of cryptocurrencies hit record highs in December 2021, with DefiLlama data indicating TVL has diminished from $6.5 billion to around $2.5 billion today.

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