- The company said it is a strategic investment in the decentralized exchange.
- Binance Labs has not disclosed the specific amount deployed into $CAKE.
- PancakeSwap currently champions the adoption of Binance Smart Chain per data.
- The DEX also has the largest total value locked in Binance’s ecosystem.
- Binance recently announced a $500 Million fund earmarked to support the broader Web3 economy and crypto start-ups.
Binance Labs, the venture capital and investment arm of the world’s largest crypto exchange, announced a strategic investment into PancakeSwap on Monday. According to the official statement released by the company, the capital was deployed into CAKE, the governance and utility token for the protocol.
Commenting on the move, Head of Binance Labs Bill Qian said the decision aligns with the company’s mandate to support Web3 development and crypto adoption.
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.
The news comes on the heels of increased efforts from Binance to bootstrap crypto startups and blockchain firms. EWN reported that Binance Labs unveiled a new fund worth $500 Million, the first of its kind featuring outside capital.
Another $105 million initiative was also announced to bolster the Web3 economy in France shortly before the exchange bagged a crypto license in the European giant.
PancakeSwap Dominates The BNB Chain
PancakeSwap debuted in September 2020 and lives on Binance Smart Chain (BSC), the peer-to-peer blockchain developed by the leading cryptocurrency exchange per trading volume. The protocol serves as a decentralized exchange (DEX) for tokens within BSC’s ecosystem, similar to UniSwap’s role on Ethereum.
Since its launch, the DEX has become a leading protocol and BSC with over 400,000 daily active users making transactions on the platform. A governance token dubbed CAKE also rolled out with the DEX.
The utility token has pumped around 10% following the announcement from Binance, per data from CoinMarketCap.
In addition to the protocol’s massive daily user data, PancakeSwap also boasts the highest total value locked (TVL) on BSC with $3.9 billion locked, according to on-chain aggregator DefiLama.