Binance Labs, the investment and incubation arm of leading crypto exchange Binance, announced Monday that it has made a strategic investment in leading BNB Chain-based decentralized exchange PancakeSwap. The investment comes a few days after Binance Labs secured $500 million in funding to support blockchain and web3 ecosystems.
PancakeSwap Receives Strategic Investment
As per the official announcement, Binance Labs invested an undisclosed amount in PancakeSwap to support the platform’s native token dubbed CAKE.
The investment firm noted that supporting PancakeSwap is part of its mission to provide financial assistance to promising blockchain and web3 projects in their development stage, early-stage, or late-stage growth.
Speaking on the development, a spokesperson for Binance Labs noted that PancakeSwap has bolstered the adoption of the BNB chain with its large userbase.
“PancakeSwap has been leading the development and mass adoption of BNB Chain. Given that PancakeSwap is the most widely used dApp and the DeFi project with the highest TVL on BNB Chain, we have and will continue to provide strong support for the project.”
PancakeSwap Caps CAKE’s Total Supply
As a leading BNB Chain platform with more than 40,000 active daily users, PancakeSwap provides a robust ecosystem where users can access different DeFi features including a decentralized exchange and multiple staking pools.
CAKE reached its apex earlier in April 2021 and traded at $44, but at the time of writing, the token is down 90% from its ATH. Following the latest announcement, CAKE gained 8% and currently exchanging hands at $4.7
Before now, CAKE had an unlimited supply and the platform used a burn mechanism to regulate the token’s circulating supply. However, in May, the PancakeSwap team decided to cap CAKE’s total supply at 750 million tokens while noting that the new supply limit aligns with its mission and also better supports the BNB chain.
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