In a recent announcement that has sent ripples through the cryptocurrency ethos, PancakeSwap, an established decentralized exchange (DEX), has unveiled its operations on Ethereum scaling network Arbitrum. The step reflects PancakeSwap’s strategic intent to build its user base and amp up its revenue streams, said the developer, only known to us as Chef Cocoa.
This prominent DEX uses smart contracts for executing trade, lending, and lottery services, effectively bypassing the need for intermediate facilitators. PancakeSwap expands its hitherto presence on blockchains like the BNB Chain, Ethereum, Polygon zkEVM, zkSync, and Aptos, with token holdings surpassing $1.54 billion as of the previous Wednesday, according to DefiLlama.
The new shift to the Arbitrum platform has some apparent upshots for PancakeSwap users. Speedier transaction times and slashed transaction fees will result, allowing users to engage in trading activities with incredibly low fees of just 0.01%. This positions PancakeSwap amidst the DEXs with the most affordable rates.
Arbitrum’s clout and efficacy as a layer 2 network can hardly be disputed, with a staggering $2 billion worth of tokens locked. Hence, PancakeSwap’s choice to deploy on Arbitrum One displays an emphasis on expanding the decentralized finance (DeFi) space and attempting to draw the mass market into it.
With the potential of attracting a diverse set of audience members to the exchange, PancakeSwap hopes to facilitate broader participation in the DeFi ecosystem. A note thus needs mentioning about the native token Cake (CAKE) on PancakeSwap, which has been seeing stable trade and is valued at $1.50.
In light of these developments, one might naturally lean towards PancakeSwap’s endeavour in an overwhelmingly positive light. But it is important to bear a seed of skepticism, as new deployments come with their set of risks and are spaces to be charted out with utmost due diligence.
Source: Coindesk
