PancakeSwap Launches on Arbitrum One
PancakeSwap, the second-largest decentralized exchange protocol, has expanded its offerings by launching on Arbitrum One, an Ethereum Layer 2 scaling network. This move aims to provide users with lower gas fees and faster transactions.
Key Points:
– Arbitrum One is an Ethereum Layer 2 solution that processes transactions on its network before summarizing them on the main Ethereum blockchain. This helps to speed up transactions and reduce fees.
– PancakeSwap will initially offer swap and liquidity provisioning features on Arbitrum One. Swap refers to exchanging one token for another in decentralized finance, while liquidity provisioning involves adding funds to a pool to facilitate trading and earn rewards.
– In the coming weeks, PancakeSwap plans to bring its farm feature to Arbitrum One, allowing users to stake their liquidity provider (LP) tokens and earn the native CAKE token while keeping a position in their LP tokens. The platform will also deploy its initial farm offering (IFO) platform, giving early access to new tokens.
– According to PancakeSwap’s “Chef Cocoa,” the move to Arbitrum One will make the DEX more capital efficient. The v3 upgrade enables liquidity providers to focus their assets on specific price ranges, increasing capital efficiency gains by up to 4000x compared to v2.
PancakeSwap’s expansion to Arbitrum One is part of its strategy to leverage Ethereum scaling networks. Since its launch in 2020, PancakeSwap has become the second largest decentralized exchange protocol, after Uniswap.
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