Binance Labs Invests in PancakeSwap, CAKE up 10%

CAKE Binance Labs Invests PancakeSwap CAKE up

Binance Labs Invests in PancakeSwap, CAKE up 10%

Binance Labs, the venture capital arm of Binance, the world’s largest crypto exchange by trading volume cake,

has made an investment in PancakeSwap, a decentralized exchange (DEX) built on the BNB Chain.

  • CAKE, the native token of the exchange, was up nearly 10% on Monday following the announcement.
  • At press time, CAKE was trading at $4.77. Despite the rally, the token is still down 36% from $7.46 a month ago after a challenging May for the crypto markets.
  • Binance Labs intends for the investment to further develop PancakeSwap’s technology, marketing and community support as well as drive Web 3-based services.
  • PancakeSwap, which was launched in September 2020, provides an automated market maker (AMM) allowing users to trade and swap decentralized finance (DeFi) tokens. PancakeSwap biggest decentralized app (dapp) on Binance’s blockchain network BNB Chain with more than 400,000 users.
  • They did not reveal the amount of the Investment.
  • Binance wasn’t immediately available for comment cake.

Firstly, Binance’s venture capital and incubation arm announced it invested in CAKE, the utility and governance token of decentralized exchange (DEX) PancakeSwap.

The undisclosed investment is part of the entity’s

“mission to facilitate the next wave of global blockchain adoption by providing technology development,

marketing and community support, and enterprise solutions for Web3 transformation,” said Binance Labs.

Secondly, Launched in September 2020, PancakeSwap is an automated market maker (AMM),

allowing users to trade, swap, and stake BEP-20 tokens issued on Binance’s BNB Chain.

Thirdly, Binance Labs says, PancakeSwap is the network’s biggest decentralized app (dApp), with over 400,000 daily active users.

In terms of total value locked (TVL) on the platform, DeFi Llama reports that the platform currently boasts $4.82 billion,

making it BNB Chain’s most valuable application too.

Boasting $387 million in trading volume over the past 24 hours, PancakeSwap (v2)—the latest iteration of the protocol—

is now the third-largest DEX behind Uniswap (v3) and dYdX only, per CoinMarketCap.

In Conclusion, “PancakeSwap has been leading the development and mass adoption of BNB Chain.

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