Decentralized Finance (DeFi) is one of the leading forces behind innovation within the cryptocurrency community. One such decentralized exchange (DEX) platform known for its reputable work and growth is PancakeSwap. The company has been heading the news with its recent announcement on expanding to a Coinbase-incubated Ethereum Layer two scaling network, Base. This significant move by PancakeSwap is part of its ongoing multi-chain expansion and promises its users to provide improved efficiency and reduced cost. Following this launch, the decentralized exchange is now available on eight different blockchain networks.
Background of PancakeSwap
What was launched as a decentralized exchange on the BNB chain in 2020, PnacakeSwap has emerged to become the second largest decentralized protocol after UniSwap according to the reports of The Block. The platform allows its users to trade tokens and offers several earning opportunities from its liquidity pool and staking. The platform stands apart from other regular traders through its ability to offer itself as a cheaper alternative. PancakeSwap also offers a much faster trading execution with higher throughput operating on the Binance Smart Chain (BSC) instead of the Ethereum network. The native token of the platform is CAKE which holds the key to the network’s governance system and offers several earning models to its holders.
PancakeSwap’s Expansion to Base
PancakeSwap has recently announced its expansion to Base, an Ethereum layer two scaling solution incubated by Coinbase as a part of its multi-chain expansion program. PancakeSwap stated that as Base is built on OP Stack in collaboration with Optimus, it presents itself as a perfect forum providing reduced gas fees, faster transaction rates, and enhanced capital efficiency. The Base mainnet which was officially launched on the 9th of August is already providing a tough competition to Optimistic rollup scaling solutions of Arbitrum and Optimism. According to the reports from The Block, Base’s seven-day moving average daily transaction has surpassed that of Arbitrum and Optimism by August 23 and continues to stay ahead of Optimism but slightly behind Arbitrum.
PancakeSwap aims to bring its farm features to Base in addition to swap and liquidity. The farm feature will enable the user to stake their liquidity provider tokens to earn PancakeSwap’s native currency, CAKE. The Base is amongst the eighth blockchain the platform has expanded to, laying prime focus on Ethereum scaling networks. Other than the BNB chain, the platform now supports Ethereum, Polygon zkEVM, Aptos, Arbitrum One, zkSync Era, and Consensys-powered Linea.
The launch of PancakeSwap on Base is a significant evolution in the decentralized finance ecosystem. Although the company is in the early stages of the launch with swap and liquidity features first moving to Base, they have an ambitious roadmap ahead, With a plan like the one to bring the farm feature to Base, the users can earn more of PancakeSwap’s native token by staking their liquidity provider tokens. This move undoubtedly opens the platform to a wider range of audiences, especially with their promise of lowering the gas fees and enhancing the transaction speed. Backed by such ambitious plans, PancakeSwap is soon headed to become the major player in the DeFi world.
Disclaimer: This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
