DeFi farming protocol PancakeSwap has recently announced new liquidity pools for farmers to earn on staked Binance Coin and the token itself has surged 8% today.
The Binance endorsed PancakeSwap DeFi yield farming protocol has launched a number of new pools, or farms, for liquidity providers to earn big returns by staking the centralized exchange’s native token.
The DeFi food farming platform was announced on Sept. 20, and immediately plugged by Binance for running on its own Binance Smart Chain as opposed to industry-standard Ethereum. PancakeSwap does exactly the same thing as SushiSwap with a DEX, AMM, liquidity pools, or kitchens as it calls them and a native token called CAKE.
Big Earnings with BNB
Naturally, Binance CEO Changpeng Zhao, who has recently ridiculed Ethereum on several occasions, was first to comment adding that PancakeSwap was the biggest contributor to activities on Binance Smart Chain (BSC).
Biggest contributor to activities on #BSC. 🙏
— CZ Binance (@cz_binance) October 13, 2020
There are currently 20 liquidity farms on the protocol with all but one, USDT/BUSD, paired with Binance Coin. Yield farmers have to buy BNB in order to stake them with their chosen pair in these pools. For this, they get rewarded in the platform’s native token, CAKE.
New BNB pairs introduced today are USDT, XRP, DAI, YFII, ATOM, XTZ, and BCH. The platform is boasting ‘insane’ APY’s on some of these new farms such as USDT and DAI;
— PancakeSwap 🥞 #BSC (@PancakeSwap) October 13, 2020
The announcement added that the weighting of some of the other pools would be adjusted to make way for the new ones.
According to the Uniswap-like analytics dashboard, liquidity on PancakeSwap has hit an all-time high of $216 million. This puts it at the same level as InstaDApp according to Defipulse.com which does not list BSC protocols. 24-hour volume on Monday 12 equaled its highest ever level of just over $20 million according to the stats.
BNB Price Jumps 8%
The liquidity farm launch has boosted BNB prices yet again with the exchange-based token surging over 8% on the day to top out at $31.60 according to Coingecko.
BNB gained a little more on Sept. 14 when it reached $33 and it hit an all-time high in mid-2019 of around $40. CAKE has lost 20% against BNB as a result but has climbed to top $1.12 today according to the platform’s own analytics provider.