PancakeSwap, a well-known decentralized exchange (DEX) providing trading, lending, and lottery services on multiple blockchains, has recently announced its upcoming launch on the Polygon zkEVM network, a layer 2 blockchain with ZKPs.
The strategic move by PancakeSwap aims to expand the DEX’s user base and revenue by leveraging the thriving Polygon ecosystem.
Polygon zkEVM is a layer 2 blockchain that operates on the Polygon network. The Polygon network, known for its scalability and interoperability, serves as a platform for Ethereum-compatible applications.
Additionally, Polygon zkEVM utilizes zero-knowledge proofs (ZKPs), an advanced cryptographic technique that grants users privacy and scalability while validating their transactions without revealing sensitive information.
Polygon zkEVM claims to be the first ZK-based network that enables Ethereum Virtual Machine (EVM) compatible smart contracts. This revolutionary feature allows developers to seamlessly deploy their existing Ethereum applications onto the network without making any modifications.
Moreover, Polygon zkEVM offers exceptional advantages such as affordable fees and remarkable scalability, processing thousands of transactions per second while keeping gas costs minimal.
Why PancakeSwap choose Polygon zkEVM?
PancakeSwap, acclaimed as one of the leading DEXs in the crypto space, has witnessed a remarkable amount of tokens locked in its protocol—over $1.54 billion worth—as reported by DefiLlama on Wednesday.
Operating seamlessly across BNB Chain, Ethereum, and Aptos blockchains, PancakeSwap offers users incredibly low fees starting from 0.01% while providing tempting rewards for liquidity provision and token staking.
As the demand for decentralized finance (DeFi) services grows, PancakeSwap encounters mounting competition from other DEXs. These platforms provide faster and more cost-effective transactions through layer 2 solutions.
Consequently, PancakeSwap made the strategic decision to expand its operations to Polygon zkEVM. By doing so, they aim to capitalize on its advantages and attract a larger user base.
According to Chef Cocoa, a PancakeSwap developer, the deployment on Polygon zkEVM will result in lower fees and faster transactions for users on the zkEVM network.
Furthermore, Chef Cocoa expressed plans for PancakeSwap to introduce additional features and products on Polygon zkEVM in the future.
What Does This Mean For Users?
PancakeSwap on Polygon zkEVM requires transferring tokens from other networks to the layer 2 networks via a dedicated bridge service. Tokens migrated to Polygon zkEVM bring faster, cheaper transactions and access to PancakeSwap’s new features and products.
Furthermore, users can take advantage of Polygon’s cross-chain interoperability to easily switch between different networks and applications without risking their funds or compromising security.
For instance, they have the option to trade on PancakeSwap using Polygon zkEVM and then transfer their tokens seamlessly to another decentralized exchange on either Ethereum or BNB Chain by utilizing the same bridge service.
PancakeSwap’s expansion to Polygon zkEVM represents a significant milestone for both projects, highlighting their strong commitment to innovation and collaboration within the DeFi space.
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Among the leading players in this space, PancakeSwap and Polygon zkEVM strive to offer users a seamless and highly secure experience that capitalizes on the advantages of privacy and scalability.