PancakeSwap Celebrates Five Years as a Leading Decentralized Exchange

PancakeSwap is celebrating its five-year anniversary, marking a major milestone for one of the most widely used decentralized exchanges (DEXs) in the world. 

Since its launch in 2020, PancakeSwap has grown from a playful automated market maker (AMM) on BNB Chain into a multichain ecosystem handling trillions in trading volume. Today, it supports token swaps across ten major blockchains, provides advanced derivatives trading, and is expanding into real-world asset exposure with stock perpetuals.

With $2.5 trillion in cumulative trading volume, 143 million total users, and $2.3 billion in total value locked (TVL), PancakeSwap has become one of the largest DEXs in the DeFi sector.

Five Years of PancakeSwap

When PancakeSwap first launched, DeFi was still seen as experimental. Over the years, decentralized finance has matured into infrastructure that now attracts institutional players, and PancakeSwap has been part of that evolution.

Key milestones since launch:

• Total Trading Volume: $2.5 trillion
• Total Users: 143 million
• Total Value Locked: $2.3 billion

PancakeSwap’s simplified user interface and low-fee model have helped it retain both newcomers and advanced traders.

The PancakeSwap Ecosystem

PancakeSwap now offers a complete range of DeFi services across ten chains, including BNB Chain, Ethereum, Solana, Arbitrum, Base, zkSync, Linea, and others.

Core Features

• Swaps: Universal routing with fees as low as 0.01%, including cross-chain swaps across seven networks.
• Perpetuals: Trading with up to 1,000x leverage on BNB Chain, Base, Arbitrum, and opBNB.
• Liquidity Provision: Support for v2, v3, and Infinity pools.
• Farming: Extra yield opportunities for liquidity providers.
• Syrup Pools: CAKE staking with partner token rewards.
• Prediction Market: Price movement betting for BTC, ETH, and BNB.
• IFO (Initial Farm Offering): Early access to token launches via CAKE commitments.
• Social Login: Onboarding through Google, Telegram, X, or Discord.
• Pancake Gifts: Onchain gifting with simple codes.
• Buy Crypto: Direct crypto purchases via the PancakeSwap interface.

These products are structured to keep DeFi accessible while providing institutional-grade tools.

CAKE Tokenomics 3.0

In 2025, PancakeSwap introduced CAKE Tokenomics 3.0, a system designed to make CAKE deflationary and utility-driven.

Key Mechanics

• Annual Deflation Target: ~4% through burns and limited emissions.
• Supply Reduction Goal: ~20% cut in total supply by 2030.
• Buyback and Burn: Protocol revenue from swaps, prediction markets, and other services funds ongoing CAKE burns.

Over the past 24 months, PancakeSwap has achieved consistent supply reduction. In 2025 alone, 718 million CAKE were burned, representing nearly 5% annual deflation.

Expanding Cross-Chain Swaps with Solana

As part of its anniversary updates, PancakeSwap added Solana to its Crosschain Swap feature. Users can now trade across seven blockchains—BNB Chain, Ethereum, Solana, Arbitrum, Base, zkSync, and Linea—without leaving the PancakeSwap interface.

This feature is powered by Relay, a multichain payment network that enables token transfers between blockchains in a single transaction. The integration addresses one of DeFi’s main challenges: fragmented liquidity across multiple chains.

PancakeSwap Infinity Upgrade

In July 2025, PancakeSwap rolled out its Infinity upgrade on Base, an Ethereum Layer 2 known for speed and scalability. Infinity introduces advanced liquidity systems designed for capital efficiency and reduced transaction costs.

Liquidity Models

• CLAMM (Concentrated Liquidity AMM): Lets providers set liquidity within price ranges, reducing slippage and increasing efficiency.
• LBAMM (Liquidity Book AMM): Uses bins for liquidity, providing zero price impact within bins and a simplified interface.

Infinity is aimed at both professional liquidity managers and casual users. By reducing gas usage and offering programmable liquidity tools, PancakeSwap is positioning itself as a high-performance multichain DEX.

PancakeSwap Stock Perpetuals

Another recent key development is PancakeSwap’s launch of stock perpetuals on BNB Chain. These onchain contracts track the price of Nasdaq-listed equities such as Apple (AAPL), Amazon (AMZN), and Tesla (TSLA).

Features of Stock Perpetuals

• Trade directly from self-custodied wallets.
• Up to 25x leverage.
• Available only during US market hours (13:30–20:00 UTC, Monday–Friday).
• Live price feeds synced with traditional exchanges.
• Risk tools including cross and isolated margin modes.

Stock perpetuals function like crypto perpetual futures but track traditional equities, merging DeFi infrastructure with traditional finance (TradFi) access.

Community and Global Reach

PancakeSwap has more than 200,000 active members across Telegram and Discord, with 2.1 million followers across X, Instagram, and YouTube.

Offline, PancakeSwap has organized over 19 meetups in 11 countries, helping to expand adoption through localized events.

Conclusion

Five years after its launch, PancakeSwap has matured into one of the most widely used decentralized exchanges in the world. Its ecosystem spans ten blockchains, supports both retail and institutional-grade DeFi use cases, and introduces new products like Infinity liquidity models and stock perpetuals.

With $2.5 trillion in lifetime trading volume, 143 million users, and consistent CAKE deflation, PancakeSwap is positioned as a central hub for multichain DeFi activity. The platform continues to evolve with a focus on usability, security, and technical resilience.

Resources:

1. PancakeSwap five year anniversary press release: https://blog.pancakeswap.finance/articles/5-years-of-pancakeswap

2. Announcement: Solana Crosschain Swaps Are Now Live on PancakeSwap: https://blog.pancakeswap.finance/articles/solana-crosschain-swaps

3. About PancakeSwap Infinity: https://docs.pancakeswap.finance/trade/pancakeswap-infinity

4. PancaekSwap Infinity Launch on BASE announcement: https://blog.pancakeswap.finance/articles/baseinfinity