zkSync Era welcomes PancakeSwap to the ecosystem
ZkSync Era will be the third zero-knowledge platform on which PancakeSwap will launch
foodstck/Shuttertock modified by Blockworks
PancakeSwap v3, a non-custodial decentralized exchange, has launched on zkSync Era.
PancakeSwap — currently deployed on Binance Smart Chain (BSC), Ethereum, Linea and Polygon zkEVM — is the third largest DEX when it comes to total value locked (TVL), according to information available on DeFiLlama. It is also one of the largest DEXes on BSC, with a market cap of $1.484 billion.
PancakeSwap’s v3 first launched in March 2023 and is known for its low trading and swap fees. This is likely due to the introduction of concentrated liquidity, Chef Mochi, the head chef of PancakeSwap, told Blockworks.
“Liquidity providers can concentrate their capital in active price ranges, reducing slippage and benefiting traders. Our multi-tier fee structure, ranging from 0.01% to 1%, provides flexible options for traders,” Chef Mochi said.
Stakers of CAKE, PancakeSwap’s native token, can also receive up to 10% on trading rebates, they noted.
“We earn revenue through trading fees distributed back to the protocol’s treasury, supporting our ongoing operations, development, and growth. For example, in v3, we distribute 9%-24% of the fees collected from the various trading fee tiers back to our treasury,” Chef Mochi said.
The DEX has previously noted that it had a goal of operating on multiple blockchains. The team said its decision to deploy on zkSync Era marks another milestone.
Many DEXes in the space seem to be embracing a multichain future. Uniswap v3 has also recently made the decision to deploy on multiple chains including Ethereum, Arbitrum, Optimism, Polygon, BSC, Celo and Avalanche.
“Our commitment to providing our users with the best experience on PancakeSwap drove the decision,” Chef Mochi said. “With zkSync, we can significantly reduce transaction costs for our users with high levels of security, making trading on PancakeSwap even more cost-effective and efficient.”
ZkSync Era will be the third destination of the DEX’s “Traverse the Treasure Islands Galxe” campaign where users can earn rewards for participating in the ecosystem. This push also comes right before PancakeSwap is set to launch its Initial Farm Offering (IFO), meant to enable users to participate in token offerings.
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