Pancakeswap has announced its integration into the Arbitrum Network which it said will introduce unparalleled user-friendliness and industry-leading low fees. The emergence of the DEX on the Arbitrum network comes with a lot of features for users.
PancakeSwap is a decentralized exchange (DEX) and automated market maker (AMM) built on the BNB Chain. It allows users to trade various cryptocurrencies directly from their wallets without the need for intermediaries like traditional exchanges.
PancakeSwap employs liquidity pools to facilitate trades, where users can provide liquidity and earn rewards in return.
The Arbitrum network is a Layer 2 scaling solution for Ethereum, designed to enhance its scalability and reduce transaction fees.
It operates as an off-chain solution that relies on smart contracts to achieve faster transaction confirmation and improved efficiency compared to the Ethereum mainnet.
Arbitrum employs Optimistic Rollup technology, allowing it to process transactions off-chain while ensuring the security of the Ethereum blockchain through a process called “rollup.”
This helps alleviate congestion on the Ethereum network and provides users with quicker and more cost-effective transactions.
Pancakeswap said that it chose Arbitrum because the blockchain aligns perfectly with its vision of creating a seamless DeFi experience.
This means that users can expect an intuitive interface that caters to both newcomers and experienced traders.
Swaps, LPs, IFOs, and Yield Farming
Furthermore, it added that some of the features users will enjoy as a result of the integration include being able to execute token swaps effortlessly, with a fee structure that lets users choose what suits them.
This ensures reduced slippage and enhanced liquidity, making the trading experience even better.
Another feature is liquidity provision. By becoming a liquidity provider, users can play an important role in the Pancakeswap ecosystem which gives them access to rewards from trading fees whenever users utilize their liquidity pool for swaps.
The other two features mentioned – Yield Farming and Initial Farming Offering – will be released in the future. According to the DEX, while Yield Farming will give users access to stake LP tokens, earn CAKE rewards, and expand their crypto holdings, IFO grants users early access to new tokens.
The DEX also encouraged users to participate in the “Traverse the Treasure Island” Campaign on Arbitrum One PancakeSwap to start earning rewards.
