Decentralized exchange PancakeSwap has reported $836 billion in cumulative trading volume and a total value locked (TVL) of about $1.72 billion in four years of operation.
PancakeSwap held about $1.72 billion in total value locked as of Sept. 20, which has decreased over the years, from an all-time high of $7.16 billion on May 4, 2021, according to DefiLlama. On March 30, 2024, PancakeSwap’s TVL was about $2.42 billion and has been dropping since.
PancakeSwap TVL. Source: DefiLlama
The exchange, which operates on an automated market maker (AMM) model, said it serves over 43 million cumulative unique addresses.
PancakeSwap v4 update to tackle automated market maker shortcomings
PancakeSwap announced it will release PancakeSwap v4, a major update that is expected to enhance user experience and scalability. v4 aims to build on PancakeSwap’s foundation with improvements to liquidity provision and interoperability.
Speaking to Cointelegraph, Chef Kids, head of PancakeSwap, explained:
“With PancakeSwap v4, we aim to tackle major shortcomings in existing automated market makers, inflexible pricing models, limited trading features compared to centralized exchanges, impermanent loss for liquidity providers, and high on-chain gas fees.”
Traders are expected to benefit from dynamic fee tiers, advanced trading tools, and reduced gas fees, improving their overall experience and lowering trading costs, Kids said.
How DeFi 2.0 is changing crypto trading | Interview with HXRO co-founder. Source: Youtube.
Kids said the protocol aims to improve flexibility and functionality in the decentralized exchange space. As user experience improves, PancakeSwap expects increased trading volume, which could boost protocol revenue. Elaborating, Kids said:
“We’ll focus on increasing capital efficiency and providing a streamlined interface for liquidity providers, which will attract more participants, enhance market depth, and lead to better price execution.”
PancakeSwap plans to expand DEX to more chains
The protocol has released its v4 white paper this year, a $500,000 developer program designed to attract top tie builders in the buildup to the official launch of v4. As part of this program, PancakeSwap said it is currently hosting a v4 Hookathon on Dorahacks, with submissions open until Sept. 30.
Launched in 2020, PancakeSwap is available across nine chains: BNB Chain, Ethereum, Aptos, Polygon zkEVM, ZKsync Era, Arbitrum One, Linea, Base, and opBNB.
Kids said PancakeSwap plans to expand its DEX to more chains. By focusing on product-market fit, PancakeSwap has identified that many DEXs lack functionality and user experience. By improving accessibility and trading efficiency on emerging networks, Kids said PancakeSwap can fill a crucial market gap.
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