PancakeSwap guns for Uniswap as its native token hit an ATH of $20 as we can see more today in our latest altcoin news.
The DEX bills itself as a cheaper and faster alternative to Uniswap as it hit a new ATH today to a high of $20.69. The total value locked in the Binance Smart Chain hit a new ATH As well as $24 billion. The platform is now working for half a year compared to the two and a half years for Uniswap. But with its success, should Uniswap be concerned?
DeFi is associated with Ethereum because most of the activity happens there but the excessive gas fees opened up the demand for other, much cheaper alternatives like PancakeSwap. This DEX is running on BSC and uses an automated market maker model to fulfill orders instead of the order book model that most of us know on traditional exchange platforms. Code analysis shows that PancakeSwap is basically a Uniswap copy with a few lines still referring to Uniswap. The ETH maximalists labeled the platform a rip-off but the proponents of open source code said it is a fair game.
PancakeSwap includes more features that cannot be seen on Uniswap. It is possible to stake liquidity provider tokens for example and earn CAKE but it is also possible to stake the tokens and earn more of it or other BEP20 tokens. right now, most of the APYs on offer are over 100% with FOR Pool yielding at 123.71%. Both have similar volumes and market shares with Uniswap getting closer on both counts and getting more sustainable regarding the number of markets that are available. The fundamental difference however comes down to a cost.
“Proof of Authority (PoA) is a modified form of Proof-of_Stake (PoS) where instead of stake with the monetary value, a validator’s identity performs the role of stake.”
With the added compatibility with the ETH network, there are even more reasons for users to shift to BSC. Over 63mn unique addresses are now using the network and there was an uptake in February especially when new users came on board. The critics however said that BSC is not the real DEFI because Binance manages the network nodes. As PancakeSwap guns for Uniswap, will it make a huge difference on the market?
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