Recently, Binance has established a $500 million fund to help the Web3 economy and cryptocurrency start-ups in general.
On Monday, Binance Labs, the world’s largest crypto exchange’s venture capital and investment arm, made a strategic investment in PancakeSwap. PancakeSwap is a decentralized exchange (DEX) based on the BNB Chain that uses the automated market maker (AMM) approach to trade BEP-20 tokens.
What did the company say?
According to the company’s official statement, the capital was invested in CAKE, the protocol’s governance, and utility tokens.
Binance Labs has not revealed the exact amount invested in $CAKE. PancakeSwap currently leads in the deployment of the Binance Smart Chain.
The blog quoted: “PancakeSwap is a decentralized exchange built on BNB Chain. The investment is part of Binance Labs’ mission to facilitate the next wave of global blockchain adoption by providing technology development, marketing and community support, and enterprise solutions for Web3 transformation.”
Bill Qian, the head of Binance Labs, said the move is in line with the company’s mission to promote Web3 development and crypto acceptance.
“PancakeSwap has been leading the development and mass adoption of BNB Chain. Given that PancakeSwap is the most widely used dApp and the DeFi project with the highest TVL on BNB Chain, we have and will continue to provide strong support for the project.”
As per Binance, “With more than 1,300 active dApps across multiple categories such as DeFi, Metaverse, blockchain games, NFT, and more, BNB Chain has processed more than 3 billion transactions from 163 million unique addresses since its launch in 2020.”
Binance Labs seeks out, invests in, and supports viable blockchain entrepreneurs, businesses, and communities and funding crypto industry projects that contribute to the general evolution of the blockchain ecosystem. Binance Labs is dedicated to assisting fast-moving teams that positively impact the crypto space.
The announcement follows Binance’s expanded efforts to help crypto start-ups and blockchain companies get off the ground. Binance Labs had previously announced a new $ 500 million fund, the first of its kind to include outside funding.
A $ 105 million project to support the Web3 economy in France was also launched just before the exchange was granted a crypto license in the European powerhouse.
PancakeSwap dominates the BNB Chain.
PancakeSwap launched in September 2020 and is based on the Binance Smart Chain (BSC), a peer-to-peer blockchain created by the world’s largest cryptocurrency exchange by trading volume. Like UniSwap’s role on Ethereum, the protocol acts as a decentralized exchange (DEX) for coins within the BSC ecosystem.
The DEX has become a prominent protocol and BSC since its introduction, including over 400,000 daily active users transacting on the platform. CAKE, a governance token, debuted alongside the DEX.
According to CoinMarketCap data, the utility coin has risen by about 15% since Binance’s announcement. CAKE was trading at $ 4.72 at the time of writing
Based on on-chain aggregator DefiLama and the protocol’s large daily user data, PancakeSwap has the largest Total Value Locked on BSC, with $3.9 billion locked.