BlockNews
FOLLOW ON X
  • CRYPTO
  • FINANCE
  • POLITICS
  • MEMECOINS
  • NFT
  • TECHNOLOGY
  • OPINION
No Result
View All Result
BlockNews
  • CRYPTO
  • FINANCE
  • POLITICS
  • MEMECOINS
  • NFT
  • TECHNOLOGY
  • OPINION
No Result
View All Result
BlockNews
Home BREAKING NEWS

PancakeSwap Advocates for Enhanced Capital Efficiency in DeFi to Boost DEX Market Share

by Matoy
April 10, 2024
in BREAKING NEWS, CRYPTO, DEFI
Reading Time: 3 mins read
A A
1
SHARES
14
VIEWS
Share on XShare in TelegramShare on Reddit
  • PancakeSwap, a leading decentralized exchange, emphasizes the need for greater capital efficiency in DeFi to increase market share for DEXs. The introduction of concentrated liquidity automated market maker options trading aims to improve on-chain liquidity in DeFi.
  • By integrating with Stryke’s options trading protocol, PancakeSwap introduces CLAMM options trading, offering advanced options for crypto investors and new avenues for liquidity providers to enhance returns.
  • Despite the innovations in DeFi, decentralized exchanges still trail behind centralized exchanges in terms of trading volume and user engagement, indicating significant growth potential for DeFi and DEXs.

Decentralized Finance (DeFi) platform PancakeSwap recently highlighted the critical role of capital efficiency in bolstering the market presence of decentralized exchanges (DEXs). The platform’s product manager, known as Chef Momo, stressed that advancements in capital efficiency and system compatibility are key to DEXs gaining a larger slice of the market.

The exchange made headlines with its launch of concentrated liquidity automated market maker (CLAMM) options trading on the Arbitrum network. This move, which came into effect on April 8, represents a fusion of PancakeSwap’s DEX capabilities with Stryke’s options trading protocol. CLAMM options trading is poised to introduce a novel method for cultivating on-chain liquidity in DeFi, grounded in the dynamics of supply and demand.

Scarcity of Options

In an interview with Cointelegraph, Chef Momo pointed out the persistent scarcity of options liquidity as a challenge not just in DeFi but also in centralized finance (CeFi). By leveraging the foundational liquidity infrastructure provided by DEXs for option writing, there lies a considerable opportunity to enhance on-chain options liquidity. The newly introduced options, available for ARB/USDC, ETH/USDC, and wBTC/USDC trading pairs, are designed to offer crypto investors more complex trading functionalities while presenting liquidity providers with fresh avenues to augment their returns.

PancakeSwap, which ranks as the 10th-largest DEX, holds a market share of 3.37% on its V2 version and 2.92% on V3, as per CoinMarketCap. The push for initiatives that drive capital efficiency and system compatibility in DeFi, akin to CLAMM, is viewed as crucial in enlarging the market share of DEXs. The platform sees significant potential in the options market within crypto, given its dominant role in traditional finance’s derivatives sector. Options trading is valued in DeFi for its capabilities in hedging investment portfolios and generating income.

A Trail Behind CEXs

However, the DeFi landscape, with its innovative strides, still lags behind centralized exchanges (CEXs) in trading volumes and user numbers. For instance, Binance, the leading CEX, boasts a daily trading volume of $26.4 billion, dwarfing Uniswap’s $1.44 billion as the top DEX. In terms of individual traders, Binance sees over 21 million weekly visits, whereas Uniswap engaged 733,930 unique active wallets in the last week, highlighting a vast potential for growth in the DeFi and DEX sectors.

Tags: DeFi
TweetShareShare
Previous Post

The Block Letter – Apr 09

Next Post

Inflation Comes in Higher Than Expected at 3.5%: What You Need to Know

DON'T MISS THESE! HOT OFF THE PRESS

Is Polkadot Dead or Just Getting Started? Here is the Shocking Truth
CRYPTO

Is Polkadot Dead or Just Getting Started? Here is the Shocking Truth

July 18, 2025
President Trump Says Crypto is Good for the Dollar, Claiming Genius Act Will Ensure America’s Dominance
CRYPTO

President Trump Says Crypto is Good for the Dollar, Claiming Genius Act Will Ensure America’s Dominance

July 18, 2025
President Trump Officially Signs Genius Act Into Law: Here is Why This is Game Changing
CRYPTO

President Trump Officially Signs Genius Act Into Law: Here is Why This is Game Changing

July 18, 2025
Trump Signs Genius Act Stablecoin Act, Says They Named the Bill After Himself
CRYPTO

Trump Signs Genius Act Stablecoin Act, Says They Named the Bill After Himself

July 18, 2025
Clarity Act Passes House: Cardano Eyes Commodity Status as New Crypto Rules Take Shape
CARDANO

Clarity Act Passes House: Cardano Eyes Commodity Status as New Crypto Rules Take Shape

July 18, 2025
$10 Trillion Asset Manager Charles Schwab Confirms Bitcoin and Ethereum Trading: Here is Why This is Bullish
BITCOIN

$10 Trillion Asset Manager Charles Schwab Confirms Bitcoin and Ethereum Trading: Here is Why This is Bullish

July 18, 2025
Load More

Related News

Is Polkadot Dead or Just Getting Started? Here is the Shocking Truth

Is Polkadot Dead or Just Getting Started? Here is the Shocking Truth

July 18, 2025
President Trump Says Crypto is Good for the Dollar, Claiming Genius Act Will Ensure America’s Dominance

President Trump Says Crypto is Good for the Dollar, Claiming Genius Act Will Ensure America’s Dominance

July 18, 2025
President Trump Officially Signs Genius Act Into Law: Here is Why This is Game Changing

President Trump Officially Signs Genius Act Into Law: Here is Why This is Game Changing

July 18, 2025
Trump Signs Genius Act Stablecoin Act, Says They Named the Bill After Himself

Trump Signs Genius Act Stablecoin Act, Says They Named the Bill After Himself

July 18, 2025
Clarity Act Passes House: Cardano Eyes Commodity Status as New Crypto Rules Take Shape

Clarity Act Passes House: Cardano Eyes Commodity Status as New Crypto Rules Take Shape

July 18, 2025
Twitter Telegram Threads

BLOCKNEWS.COM

BlockNews

BlockNews.com is your premier source for real-time cryptocurrency, blockchain, and financial market news.

Our mission is to deliver accurate, timely, and insightful information to help both seasoned investors and newcomers navigate the evolving digital economy.

With in-depth analysis, exclusive insights, and up-to-date news, BlockNews.com keeps you informed on the latest trends in crypto, DeFi, NFTs, tech, and beyond.

Stay ahead of the herd with BlockNews.com

RESOURCES

  • About
  • Contact Us
  • Terms and Conditions
  • Privacy Policy

POPULAR TOPICS

$ADA $XRP AI Avalanche Binance Bitcoin Bitcoin ETF blackrock Blockchain BTC Business Cardano Chainlink China Coinbase Coinglass crypto cryptocurrency Crypto Exchange Crypto Regulation DeFi Dogecoin Donald Trump Elon Musk ETF eth ethereum Federal Reserve FTX grayscale Memecoin metaverse Microstrategy NFT NFTs PEPE ripple sec Shiba Inu Solana Stablecoin US Web3 X xrp

GET QUICKER UPDATES ON X

© 2022-2025 BlockNews.com - Crypto and NFT news website by Aiur Labs.

No Result
View All Result
  • HOME
  • CRYPTO
  • MEMECOINS
  • TECHNOLOGY
  • POLITICS
  • FINANCE
  • NFT
  • DEFI
  • GUIDES

© 2022-2025 BlockNews.com - Crypto and NFT news website by Aiur Labs.