BNB

How Uniswap Could Dominate PancakeSwap on BNB Chain

by BSCN

December 17, 2022

A Uniswap Governance Forum member points to the DEX's takeover of activity on Polygon, saying that PancakeSwap's Uniswap v2 pools are less efficient.

Can Uniswap Replicate Takeover of Polygon DEX?

A showdown between Uniswap and PancakeSwap on BNB Chain would be a true battle of the giants. But is there a precedent indicating that a victory by Uniswap would be inevitable? Let’s take a look:

Uniswap is the dominant Decentralized Exchange (DEX) in the crypto universe, accounting for more than 50% of DEX volume overall, mostly on Ethereum. According to DefiLlama, Uniswap had about $1.5 billion in volume in the past 24 hours.

PancakeSwap, meanwhile, is a smaller elephant but in a much smaller bathtub. It's $200 million in 24-hour volume accounts for 70% of DEX volume on BNB Chain.

As the Uniswap community considers a proposal to deploy Uniswap v3 on BNB Chain, one forum member points to Uniswap’s takeover of Polygon as evidence of the DEX’s likelihood of success on BNB Chain.

In a post on the Uniswap Governance Forum, GFX Labs said BNB Chain’s TVL and users makes deployment worth considering.

“Uniswap v3 is positioned to compete significantly with Pancake Swap because their pools are Uniswap v2 which aren’t as capital efficient. For example, Quickswap’s market share on Polygon has almost been totally eroded since Uniswap v3 was deployed,” GVF Labs said.

According to the Dune dashboard by @wanxin linked in the forum post, Uniswap v3 now has about 80% of Polygon DEX market share by volume. Since Uniswap v3 debuted on Polygon in late 2021, Quickswap’s market share dropped from about 55% to less than 10%.

Could Uniswap replicate its dominance on BNB Chain? We’ll continue to follow this proposal as it plays out.

What is PancakeSwap:

PancakeSwap is a Decentralized Exchange (DEX) built on BNB Chain. It offers users various features such as Liquidity Pools, Swapping, Yield Farming, Syrup Pools, Automated Market Maker, Initial Farm Offering (IFO), NFT profile system, and many others.

In addition, the protocol helps users make the most out of their crypto assets by trading, earning through yield farming, and winning via lottery, prediction, and NFT collectibles. With the highest trading volumes in the market, PancakeSwap is the leading DEX on the BNB Chain.