PancakeSwap now accounts for more than 50% of the TVL on the growing Aptos chain, mirroring its status as the dominant DEX on BNB Chain.
The chefs have done it again. PancakeSwap has broken the 50% barrier in terms of Total Value Locked (TVL) on the Aptos blockchain, meaning the majority of Decentralized Finance (DeFi) funds are on the platform.
PancakeSwap is not only the dominant Decentralized Exchange (DEX) on both BNB Chain and Aptos, but it is head-and-shoulders above competing DeFi Decentralized Applications (Dapps) on those chains. The DEX marked its Aptos achievement with a celebratory Tweet.
đ We've reached new heights as we've achieved over 50% dominance on @Aptos_Network.
đ¤It's a testament to the team's hard work and dedication, as well as the community's support. pic.twitter.com/xdSv2cSzeC
According to DefiLlama, PancakeSwap has captured 53% of TVL on Aptos and 44% on BNB Chain — with those figures rising if you exclude liquid staking numbers.
The DEX has $29.5 million in TVL on Aptos and $2.3 billion on BNB Chain — in each case, nearly three times the TVL amount of the next-ranked Dapp.
While overall TVL on BNB Chain has essentially flatlined since Summer 2022, the TVL on Aptos has steadily increased since the chain launched in October.
However, PancakeSwap is still taking tiny nibbles out of the biggest flapjack of them all, Ethereum, with $12.6 million out of the chainâs total TVL of $48.7 billion (approximately 2.5%).
Like a prison cafeteria, major DEXes are eyeing their rivalsâ plates on other blockchains, with Ethereumâs UniSwap considering taking a bite out of BNB Chain and Avalancheâs Trader Joe having a BNB Chain âtable for twoâ reserved for its DEX and NFT Marketplace.
PancakeSwap is a Decentralized Exchange (DEX) built on BNB Chain. It offers users various features such as Liquidity Pools, Swapping, Yield Farming, Syrup Pools, Automated Market Maker, Initial Farm Offering (IFO), NFT profile system, and many others.
In addition, the protocol helps users make the most out of their crypto assets by trading, earning through yield farming, and winning via lottery, prediction, and NFT collectibles. With the highest trading volumes in the market, PancakeSwap is the leading DEX on the BNB Chain.
Website | Twitter | Medium | GitHub
Aptos is a new, independent project focused on delivering the safest and most production-ready Layer 1 blockchain in the world. The team includes the original creators, researchers, designers, and builders of Diem, the blockchain that was first built to serve this purpose.
Website | Twitter | Telegram | Medium | Discord |
Previously known as the Binance Smart Chain (BSC), BNB Chain is a community-driven, decentralized, and censorship-resistant blockchain that is powered by Binance. It consists of BNB Beacon Chain and BNB Smart Chain, EVM compatible and facilitating a multi-chain ecosystem. Through the concept of MetaFI, BNB Chain aims to build the infrastructure to power the worldâs parallel virtual ecosystem.
Website | Twitter | Discord | Telegram | GitHub |
In order to maximize returns, investors have a lot of variables that they need to take into account. How they distribute their assets can be the key to their success.
A common saying in investment circles is, "do not put all your eggs in one basket". That statement is fundamental to the success of every investor. You would not want to put all your eggs in one basket because you do not want to expose them to danger all at the same time. So, you spread your assets across many baskets in the hope that if all does not go well with one or two baskets, you can maintain financial balance from the rest of the baskets. You are simply trying to manage your risks while securing your investment portfolio.
Investment, in layman's terms, is using the money one already has to make more money. This is the pathway to achieving financial freedom. Every investment has some level of risk associated with it. So if you dream of attaining financial freedom, you must be willing to take some risks. Risks cannot be eliminated completely, however, there are measures you can take to limit your investment's exposure to them. This is where Asset Allocation and Diversification are critically important.
An asset, by simple definition, is any item that has economic value. Looking at the definition, we can see that many items can be regarded as assets. Some of the categories of assets are stocks, cash, real estate, bonds and crypto-assets (crypto is now considered an asset because it has all the characteristics of one).
Asset allocation refers to how investors spread out their investments across different categories of assets. If an investor has, say, $50,000, how much of it will they invest in stocks, real estate, or crypto? The ratio of the spread and what categories of assets to invest in is a matter of choice, but it is often determined by the level of risk one is willing to take.
The values of different categories of assets respond differently to the same market condition. Since you do not have direct control over the market, it makes little sense to put all your money into one particular category. If you concentrate your investment in one category, you expose yourself to the most significant risk. You could lose a massive chunk of your investment if the market goes against you.Â
The smartest thing to do is to reduce your risk by carefully selecting asset categories that have different market dynamics. In that way, if one market is struggling, returns from others would hopefully balance out any losses incurred.
An example of an asset allocation strategy is,Â
Diversification of assets is a strategy used to fine-tune the minimisation of risk in investment. After assets have been allocated to different categories of assets, diversification looks at the types of assets in each category and spreads the investment across them.
The crypto category of assets, for example, has Bitcoin and several altcoins such as Ethereum, litecoin, Stellar (XLM), and Doge among others. Careful analysis of their market trends over the years may show that there are cryptocurrencies whose values go up when that of Bitcoin is on an upward trend and vice versa. Spreading the allocation for crypto across cryptocurrencies that do not react the same way to BTC will minimise the risk in that category.
Another example is Stocks. Many companies operate in diverse industries. So, to properly diversify your investment, you can spread your investment in the stocks of companies in different unrelated industries rather than concentrating on companies in the same or similar industry.Â
While allocation and diversification are time-tested strategies that help investors manage their investments, many people do not find it easy to either plan it properly or implement it faithfully.Â
The first issue most people have is being able to read the markets and pick out the categories of assets to allocate or diversify into. A lot of people have biases that influence their choices. For such people, a professional investment adviser may be very helpful.Â
On the other hand, having the discipline to stick to the plan throughout the timeline (short term, medium term, or long term) is often difficult for people. If the market of a particular category is doing very well, people may be tempted to liquidate assets from other categories and switch over to the one going through a bull run. The temptation to make very fast gains is often the bait that lures investors into risks that may not play out well.
As an investor, money is a resource that must be managed appropriately for it to bring in the expected returns. Risks cannot be totally avoided while investing, but there are ways to reduce them while ensuring that returns can still be made from one's investment portfolio.Â
Asset allocation and diversification are interrelated strategies that have been proven to be invaluable in helping investors minimise risks. If properly planned and faithfully executed, they will help one to achieve one's investment goals.
Sponsored
Buy Crypto with a bank transfer, credit or debit card, P2P exchange, and more. Not investment advice. All trading risk. Terms apply.
Sponsored
Buy Crypto with a bank transfer, credit or debit card, P2P exchange, and more. Not investment advice. All trading risk. Terms apply.
Sponsored
Buy Crypto with a bank transfer, credit or debit card, P2P exchange, and more. Not investment advice. All trading risk. Terms apply.
Sponsored
Buy Crypto with a bank transfer, credit or debit card, P2P exchange, and more. Not investment advice. All trading risk. Terms apply.
