On August 24th, the multi-chain decentralized finance (DeFi) platform PancakeSwap announced its launch on Ethereum’s Layer 2 solution, Linea mainnet. This deployment introduces two new features to enhance the platform’s functionality:
1. Improved Capital Efficiency: This allows liquidity providers to concentrate their capital within specific price ranges where trading occurs the most, maximizing their earnings. PancakeSwap claims that liquidity providers can achieve up to 4000 times greater capital efficiency on v3 compared to v2.
2. Advanced Trading: PancakeSwap offers a multi-tier fee structure, enabling traders to access low transaction fees. The fee levels will vary from 0.01% to 1%, giving users the flexibility to choose the fee structure that suits their trading activities and preferred liquidity pools.
In addition to these two new features, PancakeSwap also introduced the “Traverse the Treasure Islands” program to attract users. This program offers opportunities to earn loyalty points and access commemorative NFTs.
Notably, PancakeSwap has committed that if it receives incentives from Linea, the exchange will distribute a portion to CAKE token stakers and project contributors within the community. However, Linea has not yet disclosed any rewards of this nature.
Previously, PancakeSwap had been deployed on Linea, but only as a partner within the Linea testnet ecosystem.
Linea is a layer 2 network designed for Ethereum. Like most other layer 2 networks, Linea aims to improve transaction efficiency by increasing transaction speed and reducing fees. This platform is developed by ConsenSys and was formerly known as ConsenSys zkEVM.
PancakeSwap itself is available on several different blockchain networks. The project originated on the Binance Smart Chain (now BNB Chain). Other supported networks include Ethereum, Aptos, Polygon zkEVM, zkSync Era, and Arbitrum.
As of now, PancakeSwap ranks as the 13th largest DeFi platform by Total Value Locked (TVL), with a TVL of $1.4 billion USD. The project’s native token, CAKE, is among the top 130 largest cryptocurrencies by market capitalization, with a market cap of $273 million USD.