The crypto exchange added a feature that allows users to deposit single assets into a vault, which are then automatically invested into diverse liquidity pools.
Decentralized crypto exchange PancakeSwap now has portfolio manager functionality, according to an October 30 announcement. The feature has been added in partnership with decentralized finance (DeFi) protocol Bril Finance.
The new feature allows PancakeSwap users to deposit tokens into single-asset vaults via the exchange’s user interface. Once the tokens are deposited, they go into a liquidity provision algorithm with automatic rebalancing. The development teams for PancakeSwap and Bril claim that this system will allow users to get higher risk-adjusted returns compared to other methods.
According to the announcement, users will be able to deposit tokens such as Tether (USDT), Bitcoin BEP 2 (BTC), BNB (BNB), and Ether (ETH). The teams claim the protocol has already produced over 24% internal rate of return (IRR) in tests. IRR is a metric that measures the compound annual growth rate for a project.
For the first four weeks of the feature’s release, additional rewards in the exchange’s governance token, CAKE, will also be provided to users. At launch, PancakeSwap will be the only interface that provides users access to Bril’s portfolio management system, the announcement stated.
PancakeSwap “Head Chef” (CEO) Mochi claimed that the new integration will help make the exchange a major hub for DeFi, stating:
“We aim to become a hub for all of DeFi and integrations such as this, allowing us to become a one-stop shop for portfolio management. Bril’s automated technology and its integration with PancakeSwap will allow PancakeSwap users to enjoy the core features and functionalities they are already accustomed to and seamlessly earn on their assets in a hands-off manner.”
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PancakeSwap is the second-largest fully decentralized crypto exchange in terms of daily volume, according to data from DeFi Llama. In May, it launched a pancake-themed game called “Pancake Protectors.” In September, it integrated Transak as a vendor for making fiat to crypto payments.
