According to an October 30 announcement, decentralized crypto exchange PancakeSwap now has portfolio management functionality. The feature has been added in collaboration with the decentralized finance (DeFi) protocol Bril Finance.
The new feature allows PancakeSwap users to deposit tokens into single-asset vaults via the exchange’s user interface. Once the tokens are deposited, they go into a liquidity provision algorithm with automatic rebalancing. The PancakeSwap and Bril development teams claim that this system allows users to earn higher risk-adjusted returns compared to other methods.
PancakeSwap UI. Source: PannenkoekSwap.
According to the announcement, users can deposit tokens such as Tether (USDT), Bitcoin BEP 2 (BTC), BNB (BNB) and Ether (ETH). The teams claim that the protocol has already delivered an internal rate of return (IRR) of more than 24% in tests. IRR is a metric that measures the compound annual growth rate for a project.
Additional rewards in the exchange’s governance token, CAKE, will also be provided to users for the first four weeks after the feature’s release. At launch, PancakeSwap will be the only interface offering users access to Bril’s portfolio management system, the announcement said.
PancakeSwap “Head Chef” (CEO) Mochi claimed that the new integration will help make the exchange a major hub for DeFi, stating:
“We aim to become a hub for all DeFi and integrations like this, allowing us to become a one-stop shop for portfolio management. Thanks to Bril’s automated technology and its integration with PancakeSwap, PancakeSwap users can enjoy the core features and functionalities they are already accustomed to and seamlessly monetize their assets in a hands-off manner.”
Related: UAE dirham stablecoin DRAM is launched on Uniswap, PancakeSwap
PancakeSwap is the second largest fully decentralized crypto exchange in terms of daily volume, according to data from DeFi Llama. In May, it launched a pancake-themed game called “Pancake Protectors.” In September, it integrated Transak as a provider for making fiat-to-crypto payments.