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.
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.
According to Binance Labs, PancakeSwap is currently 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.
“PancakeSwap has been leading the development and mass adoption of BNB Chain. Given that PancakeSwap is the most widely used dApp and the DeFi project with the highest TVL on BNB Chain, we have and will continue to provide strong support for the project,” Bill Qian, head of Binance Labs, said in a statement.
Binance, which operates its own DEX, doesn’t control or operate PancakeSwap, which was…
