Decentralized exchange PancakeSwap (CAKE) has expanded its reach to include the zkSync Era blockchain. The DEX's developer, "Chef Cocoa," announced this development on Thursday. This move aligns with PancakeSwap's strategic objectives to increase its user base and boost protocol revenue.
Upon launch, PancakeSwap's token swap and liquidity provisioning features will be available, imposing transaction fees of just 0.01% of the trading value. The farms feature, which enables users to stake their liquidity pool (LP) tokens to earn CAKE while maintaining their LP token positions, is expected to go live in the coming weeks. An LP is a pile of cryptocurrency locked in a smart contract, enhancing liquidity for more rapid transactions.
PancakeSwap, as a DEX, operates on smart contracts to carry out trades, lending, and lottery services for users, eliminating the need for intermediaries. Initially launched on the BNB Chain, the DEX now operates on five blockchains, including Ethereum, Polygon zkEVM, Aptos, and the newly added zkSync Era. As of Wednesday, the protocol held more than $1.57 billion worth of tokens, according to data from DefiLlama.
The zkSync Era was introduced in March by developer Matter Labs as an Ethereum layer 2 blockchain. It is compatible with the Ethereum Virtual Machine (EVM), a program that executes scripts. This compatibility allows developers to deploy applications between the zkSync Era and the Ethereum mainnet using identical code. This recent expansion puts PancakeSwap in an excellent position to increase its influence in the decentralized finance space.
