Binance’s venture capital and incubation arm announced that it has invested in CAKE, the utility and governance token of decentralized exchange (DEX) PancakeSwap.
Binance Labs said the undisclosed investment is part of the entity’s mission to facilitate the next wave of global blockchain adoption by providing enterprise solutions for technology development, marketing and community support, and Web3 transformation.
Launched in September 2020, PancakeSwap is an automated market maker (AMM) that allows users to trade, swap and stake BEP-20 tokens issued on Binance’s BNB chain.
According to Binance Labs, PancakeSwap is currently the largest decentralized app (dApp) on the network, with over 400,000 daily active users. In terms of Total Value Locked (TVL) on the platform, DeFi Lama noted that the platform currently boasts $4.82 billion, making it also the BNB chain’s most valuable application.
PancakeSwap (v2)—the latest iteration of the protocol—is now the third largest DEX, with a trading volume of $387 million over the past 24 hours. uniswap (v3) and only dYdX, per CoinMarketCap.
“Pancake Swap is leading the development and mass adoption of the BNB chain. Considering that Pancake Swap is the most widely used dApp and the DeFi project with the highest TVL on the BNB chain, we have the highest TVL on the BNB chain.” and will continue to provide strong support for Binance Labs head Qian said in a statement.
Binance, which operates its own DEX, does not control or operate PancakeSwap, which was created by unnamed developers. It’s not immediately clear whether this will change after today’s announcement.
decrypt Contacted Binance Labs and will update the story accordingly if we should hear back.
Binance, Cake and Pancake Swap
CAKE price rose to a weekly high of $4.84 after the announcement, before correcting to $4.66 at press time, which is still up 7.14% from the previous day.
With a market capitalization close to $761 million, CAKE is currently the 66th largest crypto asset in the industry.
Since its launch in 2018, Binance Labs—marketed as “a social impact fund and an initiative to incubate, invest, and empower blockchain and cryptocurrency entrepreneurs, projects, and communities”—has raised over 100 invested in projects.
Its portfolio includes flagship projects like Audacious. axi infinityDune Analytics, Elrond, Polygon, Optimism, The Sandbox, and 1inch, etc.
Last week, Binance Labs announced a new $500 million investment fund dedicated to finding and supporting “projects and founders with the potential to build and lead Web3 across DeFi, NFTs, gaming, metaverse, social, and more.” Of.
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