DeFi Exchange PancakeSwap to Deploy Version 3 on BNB Smart Chain in April, Burns $27M in CAKE

According to statements made by developers on Monday to CoinDesk, the industry-leading multichain decentralized exchange (DEX), PancakeSwap will debut its version 3 (V3) within the first week of April.

As with other decentralized exchanges (DEXs), PancakeSwap depends on smart contracts to let users trade cryptocurrencies directly with one another. As a result, it generates income from each trade and gives a portion of that revenue to liquidity providers through incentives.

V3 will be accessible solely on BNB Smart Chain (BSC), noted for its speedy and low-cost transactions. The PancakeSwap protocol runs on the Aptos, BSC, and Ethereum networks.

The update provides several new features, including enhanced liquidity provisioning, competitive trading costs, trading incentives, and yield farming tools.

It is anticipated that the sale of such items would entice more funding, lead to a rise in protocol income, and eventually strengthen PancakeSwap’s value proposition in the eyes of investors.

By Monday, the Exchange had more than $2.4 billion of locked tokens. Since its inception in April 2021, it has handled a total trade volume of 438 billion dollars, placing it among the most frequently utilized DeFi protocols. The market capitalization of its native cake (CAKE) coins is now sitting at $670 million.

After a scheduled action on Monday in the early morning hours of European time, PancakeSwap destroyed 27 million cake tokens. Burns is short for “permanent deletion,” describing permanently removing tokens from circulation. This action and future increases in demand may cause prices to climb.

According to a tweet sent by the firm, the 7 million tokens that were destroyed were purchased using the fees collected via PancakeSwap’s trading, lottery, NFT marketplace, and prediction markets.