Binance CEO suggested that Uniswap should move to the ‘Binance Smart Chain’.
PancakeSwap accounts for 31.2% of the volume traded on decentralized exchanges.
PancakeSwap, a decentralized exchange developed on the Binance Smart Chain (BSC), is positioned in the first place of the ranking according to the volume of sale of the last 24 hours. It displaced Uniswap from this location, which had long established itself as the undisputed market leader.
At the time of writing, on February 19, 2021, PancakeSwap accounts for 31.2% of the trading volume on decentralized exchanges (DEX). Over the past day, more than $ 2 billion in BEP-20 tokens were traded there.
For its part, Uniswap, built on Ethereum, is relegated to second place with a market share of 18.5%. During the last 24 hours, the volume of ERC-20 tokens traded on that platform was USD 1,067 million.
A feature of PancakeSwap, which helps it attract a large number of users, is the high yield offered to its liquidity providers. They receive the CAKE governance token in exchange for depositing other tokens in the exchange’s smart contracts.
For example, in the early days, after PancakeSwap was launched in September 2020, the annual return on investment in the CAKE-BNB pair was over 170,000%. The current yield, although more moderate, is still high: 141%.
The CAKE token, which remained below $ 1 for several months, worth about $ 20, at the time of writing.
In its early days, PancakeSwap provided a return of over 170,000% per year to its liquidity providers. Source: @pbruntler / twitter.com
It should be remembered here that, operating with smart contracts, involves risks both from potential attacks and from code errors. In many decentralized finance (DeFi) platforms, even with security audits, participants have completely lost their deposited money.
The PancakeSwap developers remain anonymous (Although they are active in social networks, with pseudonyms). This adds the risk, in the event of a major mishap, that they will simply “disappear” from the scene.
Also, the system of delivery of governance tokens with market value in exchange for providing liquidity to the exchange, very common in this type of platforms, has received criticism from some people who see it as similar to the operation of Ponzi schemes.
Binance CEO invites Uniswap to move to BSC
Changpeng Zhao, CEO of centralized exchange Binance, launched today an invitation to Uniswap developers, which was reported by CriptoNoticias: «Uniswap should consider moving to BSC. It is not easy to run with weight on the ankles, follow the users.
PancakeSwap is the decentralized exchange with the highest market volume in the last 24 hours. Source: CoinGecko.
Maybe, the increase in the use of PancakeSwap and the rise in the price of CAKE, may have had something to do with the fact that also Binance Coin (BNB), the native coin of the BSC, reached a new all-time high price today. As of this writing, each BNB is trading at USD 304 (equivalent to 0.0057 BTC)