Pancake Swap will expand its services with a prediction market based on the Arbitrum L2 blockchain. The predictions will hinge on the price of ETH, and traders will compete against an AI’s positions.
Also Read: PancakeSwap Price Prediction 2023-2032: Is CAKE Set to Rally?
Pancake Swap is still among the leading DEXes, though lagging behind Uniswap. In 2024, BSC is still active, but lagging in terms of fees compared to other chains. The latest move may increase Pancake Swap volumes and fees, while offering a new toolset for betting on the price of Ethereum (ETH).
To launch the prediction market, Pancake Swap will distribute 60K ARB tokens for activity incentives. Pancake Swap has been supported by Arbitrum, receiving a 450K ARB token-based grant to create products on multiple chains.
PANCAKESWAP LAUNCHES OWN PREDICTIONS MARKET ON ARB – WHAT WE KNOW
– DeFi-leader @PancakeSwap has just announced the official launch of its first ever predictions market, now live on Ethereum L2 @Arbitrum.
– The predictions market is AI-powered in nature, featuring an AI-powered… https://t.co/PcL8N15EvK pic.twitter.com/phAo0hwgPL
— BSCN (@BSCNews) June 26, 2024
Pancake Swap is growing its user base through incentives, especially using Arbitrum’s grants to increase liquidity. Special pools and staking facilities make users eligible to receive ARB rewards. V3 stakers on a wide selection of pools are eligible to receive additional incentives in ARB tokens.
Pancake Swap offers multi-chain incentives
The native CAKE token in its veCAKE form is available for multiple staking pools. Pancake Swap has also partnered with the top L2 projects, adding to the DeFi trend in 2024. Recently, veCAKE received an upgrade so users could stake and earn on multiple yield farms.
Pancake Swap is present on all EVM-compatible chains, from the dominant Ethereum to new contenders like Linea and Base. Pancake Swap is more aggressive in its promotion, offering fees of 0.1% and no interface fees for active ETH traders.
The Pancake Swap exchange also hosts special branded pools and projects for small-scale retail participation. The Garden Finance liquidity pool is now open for deposits as low as $5.
The incentives and overall demand for trading lifted the value locked on Pancake Swap to $1.49B. The DEX carries more than $593M in daily trades. While some of the volume is organic, Pancake Swap has also a highly-developed quest model, where incentivized liquidity is boosting the experience for all traders. At the current liquidity and activity level, Pancake Swap is still the third-largest DEX after Uniswap and Curve DEX, even surpassing Solana’s Raydium.
Also Read: Uniswap price prediction 2024-2030: Will UNI keep steady?
Pancake Swap also achieved $5.65M revenues in the past week, retaining $1.47M in earnings, turning it into one of the “fat app” sources of gains. In comparison, Curve DEX only retained around $200K.
Pancake Swap carries the campaign for Layer3, which offers Infinity Cubes, a token that then grants access to L3 rewards from a pool worth $500K.
The incentives and special pools program help keep Pancake Swap with a baseline for 120K daily active users. Some of the liquidity challenges require a very small investment with minimal impermanent loss. Otherwise, Pancake Swap’s activity depends on market cycles, with peak volumes during the hottest weeks of the 2024 market.
Pancake Swap also has $1.25 in average fees per user, making revenues of $0.41 per user. For that reason, the DEX aims to boost its activity volumes. In the past month, Pancake Swap also retailed its trading volume, reaching $14.87B on a monthly basis.
📣 Don't forget – veCAKE just received a major upgrade!
😍 Now you can supercharge your yields in Arbitrum & Ethereum v2, v3 StableSwap, & Position Manager Farms with veCAKE.
👉Check it out https://t.co/ULolojpyh1
📚More details here https://t.co/UqMMbzSdju https://t.co/qASYHM5C4i pic.twitter.com/5h0CQ4n0L6
— PancakeSwap v4🥞 (@PancakeSwap) June 26, 2024
Pancake Swap sees increased developer activity
In the past month, Pancake Swap saw an uptick in code commits and the availability of core developers. The DEX keeps building new products despite the relatively limited price action.
Pancake Swap will join the ETH Global conference in Brussels, where it has set aside a $20K fund for developers.
The DEX has also set up a $500K fund for the future builders of new products. Pancake Swap seeks developers for a total of nine chains where it has spread its versions. The current V4 version is also ahead of Uniswap, which still has not deployed the promised hook technology. Pancake Swap runs V4 pools since March 2024.
The DEX is holding more than 16% of all trading traffic, though still far from the dominance of Uniswap, with a 53% share. Ethereum is still the major hub for DEX activity, carrying around 42% of volumes.
DEXes have achieved nearly $1.2 trillion in trades, with $193B in the past 30 days. Decentralized markets were also visited from more than 57M distinct wallets on all available chains.
Cryptopolitan reporting by Hristina Vasileva
