PancakeSwap to Reward Testers of Its Latest Feature
PancakeSwap now offers users the ability to automatically transfer assets into different liquidity pools.
What is Yield IQ?
PancakeSwap has introduced an automated portfolio management feature dubbed “Yield IQ,” which was announced on the exchange's official channels on October 31st.
Developed in partnership with the DeFi protocol Bril Finance, this new tool simplifies the liquidity provision process by allowing liquidity providers (LPs) to deposit a single token into the PancakeSwap Farms. In return, LPs can expect attractive annual percentage yields and a share of transaction fee rewards from the pool.
Currently, in the beta testing phase, users are able to add USDT, Bitcoin, BNB, and Ether through the Position Manager feature. The protocol has demonstrated a 24% Internal Rate of Return (IRR) in its initial operational tests.
For two weeks following the launch, users will receive additional rewards in PancakeSwap's native token, CAKE, varying from 500 to 1000 per week, depending on the assets they deploy.
How to Connect to Yield IQ:
1. Go to the ‘Position Manager' tab and select the trading pair of interest. The token you wish to add to the liquidity pool will be the first in the pair.
Depositing options for USDT and WBNB. Source: pancakeswap
2. Use “Add Liquidity” to view details on the expected Annual Percentage Rate (APR) and any applicable management fees.
3. Specify the amount of tokens you wish to deposit and press “Confirm”.
High-interest rates on offer. Source: pancakeswap
The amount of CAKE earned and the current yield on your investment in the pool can be tracked on the Position Manager's homepage.
Why ‘Yield IQ' Was Launched?
PancakeSwap’s CEO Chef Mochi stated that this new integration is aimed at transforming the platform into a major DeFi hub:
Our goal is to become a one-stop portfolio manager in addition to DeFi functions. Bril's automated technology and integration with PancakeSwap allows PancakeSwap users to enjoy the core functionality they are already used to, and later have their devices work seamlessly and automatically.
According to DefiLlama, PancakeSwap is currently the second-largest decentralized crypto exchange by daily trading volume, coming in just behind Uniswap.Throughout 2023, the development team has been on a roll with a slew of launches:
- In April, they rolled out the V3 app iteration on the BNB Chain and Ethereum blockchains;
- In May, the GameFi title “Pancake Protectors” made its entry;
- September welcomed the integration of the fiat on-ramp solution, Transak, into the platform.
The collaboration between PancakeSwap and Bril Finance is exclusive. The exchange will be the only DEX platform that offers users access to Bril's portfolio management system.
Will this development shift the power dynamics in the DeFi market? And how will Uniswap, its primary competitor, respond?
We’ll be the first to update you.
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