DeFi Ecosystem- Correlation between ZeroSwap and PancakeSwap
Getting to know how the two exchanges coincide and correlate
- The growth of the decentralized exchanges over the last two quarters has been magnificent. DEX volumes continued their explosive growth even in the second quarter, reaching $405 billion, accounting for a 117x increase year-over-year and a massive 83% increase since the first quarter.
- With this tremendous growth comes the power-packed roles of varied exchanges and protocols that contribute to this process in ways that only draw a brighter future for the DeFi ecosystem.
- One such exchange is PancakeSwap, a decentralized exchange that runs on the Binance Smart Chain.
- This article covers some in-depth correlation between the innovations of ZeroSwap and PancakeSwap, highlighting the landscape that both these DEX’s are playing into.
PancakeSwap- A quick introduction
As mentioned above, PancakeSwap is an exchange that runs on the Binance Smart Chain as opposed to most popular DEX’s running on Ethereum. Also, the core functionalities of PancakeSwap include letting its users swap tokens without an intermediary and earn liquidity pool and staking rewards, enter a lottery, and more such an array of decentralized options.
ZeroSwap v/s PancakeSwap
- ZeroSwap, being a multi-chain dex, will support the leading blockchains like Ethereum, Binance Smart Chain, Polygon, Avalanche, and more whereas PancakeSwap supports only the Binance Smart Chain and BEP20 Token only.
- ZeroSwap has an integrated Market-Making Suite which integrates leading AMMs on various blockchains whereas PancakeSwap itself is an AMM that provides liquidity solutions.
- ZeroSwap’s Staking module lets $ZEE holders stake ZEE on multichain like Ethereum and Binance Smart Chain whereas PancakeSwap has its own farms that are hosted only on Binance Smart Chain.
- With the acquisition of Defi Wizard, ZeroSwap provides LP Staking rewards program Dashboard to various DeFi Protocols. On the other hand, PancakeSwap being an AMM, its users are in full capacitation to provide liquidity for the tokens and participate in Farming opportunities.
- Both these protocols allow the Initial Public Sale of tokens.ZeeDo — ZeroSwap Dex Offering Platform allows companies to do the public sale of tokens in a 100% Decentralised Fair and Seamless manner. Users can stake ZEE tokens on ZeroSwap Staking modules on both ETH or BSC to participate. Once the minimum tokens required are staked, participants receive the POP ( Proof of Participation) and POW (Proof of Winning ) tickets. The winning tickets are drawn via Chainlink VRF Randomizer. The users who have received the winning tickets can swap USDT, ETH, BNB to buy the IDO tokens which are autonomously decided by the protocol doing the sale.
On PancakeSwap, there are quite a few Initial Farm Offering (IFO) sales that let the users buy brand new coins from budding projects. However, the users need to provide CAKE-BNP LP to participate in the Initial Farm offerings.
- PancakeSwap is used by a wide range of users specifically for BEP-20 tokens running on Binance Smart Chain. Although it’s possible to bring over tokens from other platforms via Binance Bridge and “wrap” them as a BEP-20 token for use on the DEX. On the other hand, ZeroSwap’s native token ZEE can be used in Ethereum, Binance Smart Chain, and Polygon Chains.
With the support of DeFi Wizard ZeroSwap has its own Bi-Directional Bridge for ETH<>BSC, ETH<>Polygon, and has been expanding its services by providing Bridge, LP staking, Custom Staking to various protocols for their native tokens.
- At ZeroSwap, users can stake ZEE tokens on the ZeroSwap Staking module and avail free trade which enables them to swap tokens by paying a zero gas fee, which is ideally the core utility of ZeroSwap’s Product Suite. At PancakeSwap, users can stake coins into Syrup Pools that provide growing rewards like earning even more CAKE just letting its stake in the pool over time.
Moving upward and straddling the DeFi Ecosystem, we at ZeroSwap aim to inspire with the kind of victories that PancakeSwap is striding with every coming day. We are looking forward to integrating LP Staking programs, ZeeDO, Staking, and the functionalities of the DEX, all under one UI which would provide a phenomenal one-stop-shop experience for the ZEE community.
A pricing mechanism for transaction fee mining will come into play when our next protocol is launched. On the first day of the launch, we will bootstrap the gas from our side, and thereafter whenever there is a trade where $ZEE tokens are generated, they will be kept in a reserve and will be used to fund the gas fees.
Moreover, we will provide the users with LP rewards in $ZEE every time users provide liquidity to existing AMMs. This is an additional benefit combined with earning the existing AMMs tokens.
Also, we are working very closely on building the mechanisms for ZeeDO 2.0, Staking 2.0, and revamping the UI for more effortless navigation. Going forward we will have multichain farms on DeFi Wizard where ZEE and DeFi Wizard tokens will be closely compiled.
About ZeroSwap and ZeeDO:
ZeroSwap is a multi-chain compatible decentralized exchange aggregator focused on making zero-fee transactions possible. We aim to make on-chain trading simple and easy by providing Ethereum, Binance Smart Chain, Polygon and DEXes access under one roof. One of the core utilities of ZEE is to reduce friction in fundraising using digital assets. To solve that, we have built a Dex Offering Platform Called — ZeeDO.