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PancakeSwap v3 Debuts on Ethereum’s Linea Layer 2, Offers Enhanced Features

Author

Jay Solano

Tags

Reading time

2 mins
Last update

Author

Jay Solano

Tags

Category

News - Archive

Reading time

2 mins
Last update

Author

Jay Solano

Tags

Reading time

2 mins
Last update

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PancakeSwap v3, a renowned multi-chain decentralized finance (DeFi) exchange, made waves with its announcement of launching on Ethereum’s layer 2 network, Linea, on August 24.

This deployment carries two crucial enhancements for users:

Improved Capital Efficiency: This feature is a boon for liquidity providers, offering them the ability to channel their capital towards specific price segments where trading is most active. This strategic concentration is geared towards optimizing their earnings. A bold assertion by PancakeSwap indicates that, in comparison to its predecessor v2, the v3 can potentially amplify capital for liquidity providers by a staggering 4000 times.

Revamped Trading Features: Linea’s addition will usher in a tiered fee system for trading. This new framework gives traders the leverage of low fees, with the rates fluctuating between 0.01% and 1%. The system’s flexibility ensures traders can cherry-pick a fee tier that aligns best with their preferred trading actions and liquidity pool.

Moreover, in a bid to heighten community engagement, PancakeSwap has rolled out a promotional campaign titled “Traverse the Treasure Islands.” Participation in this initiative can lead to earning loyalty points and exclusive NFTs as keepsakes.

In the context of rewards from Linea, PancakeSwap clarified its intent to share a portion of such incentives with its community, especially those staking the platform’s native CAKE token and other contributors. It’s worth noting, however, that Linea hasn’t made any proclamations regarding rewards as yet.

While this launch heralds PancakeSwap’s primary entry on Linea, it isn’t the platform’s maiden tryst with it. PancakeSwap had previously collaborated with Linea during its testnet phase.

Background on the DeFi Landscape:

Linea, formerly christened as ConsenSys zkEVM, is a layer 2 solution for Ethereum, crafted by ConsenSys. Its mission echoes that of most layer 2 solutions: augmenting transaction efficacy by boosting speeds and curtailing fees.

PancakeSwap’s presence isn’t confined to a single blockchain. Its roots trace back to Binance Smart Chain (recently renamed as BNB Chain). It also extends its services across various networks, namely Ethereum, Aptos, Polygon zkEVM, zkSync Era, and Arbitrum. Its v3 iteration was launched on both BNB Chain and Ethereum in April 2023.

In terms of standing, PancakeSwap occupies the 13th spot in the DeFi realm based on Total Value Locked (TVL), boasting $1.4 billion in assets. Its proprietary CAKE token is ranked within the top 130 cryptocurrencies, showcasing a market capitalization of approximately $273 million.