PancakeSwap, one of the leading decentralized exchanges (DEX), has unveiled a new product aimed at improving user execution prices and making cryptocurrency transactions more accessible to the mainstream audience. The newly launched PancakeSwapX enables zero-fee transfers and gasless asset swaps on both the Ethereum and Arbitrum networks, marking a significant step forward in decentralized finance (DeFi) usability.
According to Chef Kids, the head chef at PancakeSwap, PancakeSwapX allows traders to focus entirely on executing their trades without the burden of managing multiple native gas tokens or calculating gas fees. He emphasized the importance of this development:
“[PancakeSwapX] is allowing traders to focus solely on executing their trades without the hassle of maintaining multiple native gas tokens or calculating gas fees. Additionally, by aggregating liquidity from multiple sources, PancakeSwapX eliminates the need to switch between different platforms for better execution prices.”
Traditionally, new DeFi users faced a complicated onboarding process that required them to set up a native Ethereum address and purchase Ether (ETH) to cover transaction fees before they could even begin trading on the blockchain. This complexity often drives new crypto investors toward centralized exchanges (CEXs), where the user experience is simpler.
Simplifying the user experience in DeFi is crucial for fostering mainstream adoption. Chef Kids believes that removing the necessity of holding gas tokens like Ether will significantly improve accessibility for newcomers. He stated:
“By streamlining the trading process and making it more accessible, PancakeSwapX opens the door for a broader audience to engage with DeFi. Ultimately, it’s about streamlining the user experience to make DeFi as accessible as possible, paving the way for broader mainstream adoption.”
PancakeSwap currently ranks as the fourth-largest decentralized exchange, boasting an all-time trading volume exceeding $258 million across over 387 digital assets, according to Messari data.
Complexity remains the biggest barrier to mass crypto adoption, as highlighted by Chef Kids. He compared the functionality of centralized exchanges, which operate on an order book system and manage off-chain transactions, to the decentralized experience that requires users to be more hands-on. PancakeSwapX addresses this challenge with its gasless swap feature, which manages gas fees on users’ behalf.
Moreover, any failed or expired orders on PancakeSwapX will remain entirely off-chain, ensuring that users will not incur transaction fees for these unsuccessful trades.
Other industry experts also acknowledge the friction points that hinder crypto adoption. Chintan Turakhia, senior director of engineering at Coinbase, expressed the need to eliminate these barriers to welcome the next generation of users. He stated:
“If our goal is to bring in the next billion users — and let’s start with just 100 million — we have to take all those friction points out.”
In line with this mission, Coinbase launched a smart wallet in July that includes beginner-friendly features and sponsors gas fees for users, further simplifying the onboarding process.
PancakeSwapX represents a significant advancement in making DeFi more user-friendly and accessible. By addressing the complexities associated with gas fees and transaction processes, PancakeSwap is paving the way for broader adoption of decentralized finance. As the DEX continues to innovate, it may play a crucial role in attracting new users and fostering a more inclusive cryptocurrency ecosystem.
October 2024, Cryptoniteuae