Decentralized exchange (DEX) PancakeSwap on Friday announced launch of a discussion proposal to introduce an "Affiliates" program aimed at extending its reach across new blockchains, directly benefiting CAKE CAKE/USD token holders with native DEX tokens from these collaborations.
What Happened: The program is designed to officially support third-party DeFi teams in deploying PancakeSwap’s core contracts on new chains where PancakeSwap currently lacks presence.
This move is not just about expansion but also about enhancing revenue streams for PancakeSwap and funding future development initiatives.
Affiliated DEXs will mirror PancakeSwap's operational model, including liquidity provider fees, token incentives and a token buy-back-and-burn mechanism.
In exchange, these DEXs will allocate a portion of their supply to PancakeSwap, with a specific percentage dedicated to veCAKE stakers.
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Why It Matters: PancakeSwap's aggressive expansion in 2023 to nine blockchains highlighted the challenges of keeping pace with the rapid growth of new blockchain technologies and maintaining quality engagement across all platforms.
The "Affiliates" program is set to tackle these scalability issues by leveraging partnerships with teams more native to these new chains, thus ensuring PancakeSwap's presence and performance on a broader scale.
What’s Next: The initiative targets are to establish at least three DEX partnerships in 2024, each positioned within the top quarter of trading volume on their respective chains.
Price Action: At the time of writing, the CAKE token has seen positive market sentiment in response to the announcement, trading up by 10%, reflecting the community's optimism about PancakeSwap's expansion strategy.
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Photo: PancakeSwap Cake token logo via Shutterstock
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