PancakeSwap (CAKE), a decentralized exchange (DEX) built on Binance Smart Chain (BSC), is up over 30% on the day. This rally came after the altcoin project announced a partnership with the world’s largest cryptocurrency exchange, Binance. For details, continue reading Kriptokoin.com.
Altcoin rally with Binance announcement
The partnership is launching a ‘PancakeSwap Mini Program’ on the Binance app, which is the first decentralized finance (DeFi) project on Binance’s mobile platform, according to the press release. The Mini-Program will begin rolling out on Thursday and will eventually be available to all users of the app.
The idea behind the launch is to unblock DeFi by giving Binance users easy access to PancakeSwap via the Binance app. Binance also announced a DeFi Wallet in its app that allows users to transfer funds and use DApps like PancakeSwap.
PancakeSwap (CAKE) was trading around $5.50 before the announcement and then reached $7.19. At the time of writing, it was trading at $6.50, gaining over 20% in the last 24 hours, according to data from CoinMarketCap.
CAKE is up more than 30% on the day, but the token is still 85% below its all-time high of $44.18 reached in April 2021. Data from Nansen shows that overall on-chain volume is still small compared to 2021.
What is PancakeSwap (CAKE)?
PancakeSwap, an automated market maker (AMM); Decentralized finance (DeFi) application that allows users to trade tokens, raise liquidity through farming and earn passive income in return.
Launched in September 2020, the protocol is a decentralized exchange used to exchange tokens supporting the BEP20 standard on Binance Smart Chain. PancakeSwap uses the automated market maker model where users trade against the liquidity pool. These pools are populated by users who deposit their funds into the pool and receive liquidity provider (LP) tokens in return.
PancakeSwap also allows users to collect alternative tokens like SYRUP alongside CAKE. With the Farming process, users can deposit their LP tokens into the system and are rewarded with CAKE as a result.
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