Binace Labs announced a strategic investment into PancakeSwap’s governance and utility token, CAKE.
Binance’s venture capital arm and incubation arm declared that it had invested in CAKE, the utility token and governance of decentralized Exchange (DEX) PancakeSwap.
Binance Labs stated that the investment was part of the entity’s “mission to facilitate global blockchain adoption through providing technology development, community support and enterprise solutions for Web3 Transformation.”
PancakeSwap was launched in September 2020. It is an automated market maker (AMM) that allows users to trade, swap and stake BEP-20 tokens on Binance’s BNB chain.
Binance Labs reports that PancakeSwap, with more than 400,000 active users per day, is the largest decentralized app (dApp) on the network. DeFi Llama, a Decentralized Apps (dApp) researcher, reports that PancakeSwap currently has $4.82 Billion in total value locked (TVL), making it the most valuable app on BNB Chain.
PancakeSwap (v2), the latest version of the protocol, now has $387 million in trading volume during the last 24 hours. This is behind Uniswap(v3) and dYdX, per CoinMarketCap.
PancakeSwap is responsible for the mass adoption and development of BNB Chain. PancakeSwap being the most popular dApp and DeFi project with highest TVL on BNB chain, we have provided and will continue strong support for this project,” Bill Qian from Binance Labs stated in a statement.
Binance, which has its own DEX, does not control PancakeSwap. It was created by anonymous developers. This is yet to be confirmed.
Decrypt has reached out to Binance Labs. We will update the story accordingly, if we hear back.
PancakeSwap, Binance, and Cake
CAKE’s price rose to a weekly high of $4.84 after the announcement. corrected to $4.66 at press time. This is still an increase of 7.14% from the previous day.
CAKE currently ranks as the industry’s 66th largest crypto asset with a market cap of $761 million.
Binance Labs was launched in 2018 and has since invested in more than 100 projects.
Its portfolio includes major projects such as Audius and Axie infinity, Dune Analytics and Elrond.
Binance Labs has announced a $500 million investment fund to support “projects and founders who have the potential to create and lead Web3 across all DeFi, NFTs. Gaming, Metaverse, Social, and other areas.”