Venus Protocol Partners with PancakeSwap to Deliver Instant Token Swaps
New York, NY
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December 02, 2022 09:50 AM Eastern Standard Time
Two of the largest dApps on BNB Chain, Venus Protocol and PancakeSwap, have joined forces to deliver seamless token swap functionality on the leading DeFi crypto borrow/lend protocol. The first of our two-part integration has been completed with one-click repay functionality on the way.
As part of Venus’s v4 upgrade, this integration brings greater convenience and efficiency to users and is the first-of-its-kind integration in DeFi. Let’s go through the benefits of this new functionality in more detail.
What is PancakeSwap?
PancakeSwap is a non-custodial platform on BNB Chain for exchange and profitable farming using BEP-20 standard tokens. PancakeSwap has its own CAKE token and is similar to Uniswap and SushiSwap. But compared to these Ethereum exchanges, PancakeSwap has faster transactions and lower fees.
The platform uses an automated market maker (AMM) model to service trading operations. This means that PancakeSwap does not employ the usual order book to issue exchange requests. Instead, exchange trading is carried out within the liquidity pool, which is filled by the users themselves. In return, they receive Liquidity Provider (LP) tokens, which are needed to generate income from trading fees, farming, and others.
PancakeSwap has been audited by CertiK and is integrated with all of its security tools: Security Oracle, CertiKShield DeepSEA, and the CertiK Virtual Machine. The site has also passed the Slowmist security audit.
After passing these checks, PancakeSwap has not only built trust with users but also proven its ability to overcome some of the most obvious vulnerabilities.
What does Venus Protocol’s integration with PancakeSwap mean for users?
Joining forces with PancakeSwap makes Venus Protocol the first protocol to provide crypto borrowing and lending with the ability to swap tokens from the same UI with a single click. This is a huge leap in user experience and functionality that has never been seen before in DeFi.
By adding the integration to the Venus Protocol user interface, users will no longer have to migrate out of Venus Protocol to use PancakeSwap to swap tokens. If a user sees an APY token and wants to add exposure, they can simply swap one of the tokens they already hold and supply it to Venus Protocol without leaving the comfort of Venus’s UI.
The integration helps users save on gas fees because they are able to make every exchange with a single click instead of transferring their assets to a wallet, then exchanging them and re-depositing them to the Venus Protocol. In addition, they will be able to use these instant exchanges to deposit assets or, for example, pay off a loan.
One giant leap toward a bigger upgrade
Venus is thrilled to be adding the PancakeSwap integration to our user interface. This partnership means greater convenience and efficiency for Venus Protocol users and a more reliable source of income as Venus Protocol will participate in the revenue generated using PancakeSwap for all transactions sourced through Venus.
The partnership with PancakeSwap is part of a larger Venus Protocol upgrade, aimed at providing offerings that mitigate user challenges and uncertainty in DeFi.
Venus Protocol (“Venus”) is an algorithmic-based money market system designed to bring a complete decentralized finance-based lending and credit system onto Binance Smart Chain. Venus enables users to utilize their cryptocurrencies by supplying collateral to the network that may be borrowed by pledging over-collateralized cryptocurrencies. This creates a secure lending environment where the lender receives a compounded interest rate annually (APY) paid per block, while the borrower pays interest on the cryptocurrency borrowed. These interest rates are set by the protocol in a curve yield, where the rates are automated based on the demand of the specific market, such as Bitcoin. The difference of Venus from other money market protocols is the ability to use the collateral supplied to the market not only to borrow other assets but also to mint synthetic stablecoins with over-collateralized positions that protect the protocol. These synthetic stablecoins are not backed by a basket of fiat currencies but by a basket of cryptocurrencies. Venus utilizes the Binance Smart chain for fast, low-cost transactions while accessing a deep network of wrapped tokens and liquidity
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