REPORT: PancakeSwap in 2023

by BSC News

August 9, 2023


The rise of PancakeSwap to a prominent position in just two years is remarkable, and the various updates throughout this year are exciting to watch.

PancakeSwap Underwent Major Developments This Year

PancakeSwap is a decentralized exchange that facilitates seamless token trading and offers appealing liquidity pooling and staking opportunities.  

Unlike its peers that rely on Ethereum's infrastructure, PancakeSwap thrives on the Binance Smart Chain (BSC). This approach bears tangible benefits, particularly in the realm of transaction costs. Ethereum's soaring gas fees have often been a bone of contention among traders, nudging them to seek more cost-effective alternatives.

With the rapid evolution of decentralized financial instruments, PancakeSwap is one of the fastest-growing decentralized finance (DeFi) projects. 

Today, we will uncover the major updates in the PancakeSwap ecosystem this year until now. 

Without further ado, let's begin.

v3 Launch on BNB Chain And ETH in April: 

PancakeSwap launched its V3 iteration on BNB Chain and Ethereum, with improved capital efficiency and a redesigned fee structure on April 3. According to the exchange's developers, the upgraded platform will offer the lowest fees for on-chain trades among counterparts such as SushiSwap and Uniswap, as well as increased returns for liquidity providers. 

First GameFi: Pancake Protectors

PancakeSwap and Mobox have come together to present a GameFi project — Pancake Protectors. The game combines the gameplay of MOLand Defense with the utility of CAKE tokens.

This integration of $CAKE allows players to earn rewards during their gameplay. Further, the game incorporates two unique NFTs: Pancake Bunnies and Squads, which can improve heroes' abilities.

CAKE v2.5 Tokenomics

PancakeSwap passed the CAKE Tokenomics v2.5 Decision Proposal on April 29, increasing the scarcity of their native token. The proposal's primary focus was on low staking inflation, where real yield comes from protocol revenue.

As part of the v2.5 tokenomics proposal, token incentives will also be reduced by over 68%, leading to a deflationary economy for CAKE. Moreover, it will reduce CAKE emissions from PancakeSwap's primary liquidity pool, the Syrup Pool, by up to 94%.

Revenue Sharing Pool

PancakeSwap’s massive Revenue Sharing Pool went live on July 30 for all CAKE holders.

As a result of the new mechanism, liquidity providers will be able to share 5% of the revenues generated from all v3 trading pairs with 0.01% and 0.05% fees. Additionally, users will be able to receive and claim their shares of PancakeSwap v3 trading fees in addition to the "regular" CAKE staking rewards.

Users will receive rewards proportional to their CAKE stake and the duration of their staking period. The participants of the program will receive rewards every week.

Multhchain Expansion: Polygon zkEVM, zksync Era

PancakeSwap v3 officially launched on the Polygon zkEVM Mainnet Beta on July 29, providing Swap and Liquidity Provision functionality to its community. This deployment reportedly offers lowered trading fees, increased liquidity provider fees, and improved capital efficiency.

In addition, the DEX expanded to the zkSync Era blockchain on Aug.3. The recent update includes several features, including Swap, Liquidity Provision, Farms, and Initial Farm Offerings (IFOs).

The native token of PancakeSwap ($CAKE) is trading at $1.49, with almost no change over the last 24 hours.

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