The arrival of this technology will bring higher returns to liquidity providers and lower fees to traders.
PancakeSwap v3 is a popular multi-chain DeFi exchange that announced its launch on Ethereum’s layer 2 network Linea on August 24.
The exchange’s deployment on Linea introduces two new features. The first is improved capital efficiency, which will enable liquidity providers to focus their capital on specific price ranges where the largest transactions occur. This feature is designed to help participants increase their income. PancakeSwap claims that liquidity providers can achieve a 4,000x higher capital multiplier on v3 than on v2.
The second feature Linea will provide is enhanced trading capabilities. PancakeSwap said the launch will offer a multi-tier fee structure that will allow traders to receive lower trading fees. Fee tiers range from 0.01% to 1%, and users will be able to choose the fee structure that best suits their trading activities and liquidity pools.
PancakeSwap also advertised a promotion called “Travel Through Treasure Island” and said users could earn rewards by participating. The event offered the opportunity to earn loyalty points and receive commemorative NFTs, further demonstrating the platform’s engagement with its community.
PancakeSwap added that if it receives incentives from Linea, it will distribute a portion of those rewards to stakeholders who stake its CAKE tokens, as well as other project contributors and community members. However, Linea said it has not yet announced any such incentives.
While today’s announcement marks the launch of its mainnet, PancakeSwap noted that it previously deployed on Linea as a testnet ecosystem partner.
Projects spread across the DeFi ecosystem
Linea is a layer 2 network for Ethereum. Like most layer 2 networks, it aims to make transactions more efficient by increasing transaction speeds and reducing fees. The platform was developed by ConsenSys and was previously known as ConsenSys zkEVM.
PancakeSwap itself is available on multiple different blockchain networks. The project originated on Binance Smart Chain (now known as BNB Chain). Other supported networks include Ethereum, Aptos, Polygon zkEVM, zkSync Era, and Arbitrum. PancakeSwap v3 was launched on BNB Chain and Ethereum in April 2023.
PancakeSwap is currently the 13th largest DeFi platform by total value locked (TVL), with $1.4 billion in crypto currently locked by users. Its native token ( CAKE ) is one of the 130 largest cryptocurrencies with a market cap of $273 million. #PancakeSwap #Linea
