Binance CEO stated 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), positions itself in the first place of the ranking according to sales volume in the last 24 hours. It displaced Uniswap, which had long established itself as the undisputed market leader, from this location.
On February 19, 2021, PancakeSwap puts 31.2% of the trading volume on decentralized exchanges (DEX)under its control. Over the last day, more than $ 2 billion in BEP-20 token transactions happened.
Also, Uniswap, developed on Ethereum, gets dethroned and reaches second place with a market share of 18.5%. During the last day, the volume of ERC-20 tokens on that platform was around USD 1,067 million.
A prominent feature that helps PancakeSwap attract many users is offering high performance to its liquidity providers. They receive the CAKE governance token in exchange for depositing other tokens in the exchange’s smart contracts.
In the early days, after PancakeSwap saw the light 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%.
It is essential to consider that operating with smart contracts implies risks due to potential attacks and code errors. In some decentralized finance (DeFi) platforms, participants have entirely lost their deposited money even with security audits.
The PancakeSwap developers remain anonymous (although they are active on social media, under pseudonyms). This behavior adds risk if a significant mishap happens that they would vanish from the scene.
Also, the delivery of governance tokens with a market value in exchange for providing liquidity to the business has received criticism from some users and personalities in the crypto-environment because they share similarities with Ponzi schemes’ operation.
Binance CEO Invites Uniswap to Move to BSC
Changpeng Zhao, CEO of the centralized exchange Binance, launched an invitation to Uniswap developers: “Uniswap should consider moving to BSC. It is not easy to run with weight on the ankles.”
The increased use of PancakeSwap and the rise in CAKE price might be a cause for Binance Coin (BNB), a native coin of the BSC, to reach a new all-time high today. Also, each BNB is trading at USD 304 (equivalent to 0.0057 BTC)
Uniswap is commanding the decentralized crypto exchange that runs on the Ethereum blockchain. These platforms receive orders from a single authority (the company that operates the trade) and require users to place funds under their control by using a traditional order book system to facilitate trading.
The Uniswap platform dates from 2018, on top of the Ethereum blockchain, the world’s second-largest cryptocurrency project by market capitalization, making it compatible with all ERC-20 tokens and platforms like MetaMask and MyEtherWallet.
By: Jenson Nuñez
