PandaSwap is a relatively new platform in the DeFi space on BINANCE Smart Chain but it’s already seeing some success since its late April launch. Volume has swelled 236% to $64.8 million in the past 7 days.
During that same time period, the number of unique active wallets for PandaSwap increased 87% to 3,370. The platform is now responsible for $35 million in TVL. With those numbers, the DeFi protocol is hardly a behemoth.
Market leader PancakeSwap attracts 250,000 user wallets per week and has $3,89 billion in volume. Even smaller fish like ApeSwap attract ten times more users than PandaSwap. At the same time PantherSwap, a new protocol we recently wrote about already attracts more than 38 thousand user wallets over the past 7-day period. However, their volume of $72,8 million isn’t much different from PandaSwap’s $64,8 million.
So what’s the secret sauce of PandaSwap?
Where other protocols allow users to chase high yields, cash out and run to the next yield farming project, PandaSwap takes a different approach. Yes, they offer the same high yield you will find on new DeFi platforms.
There are farms for different liquidity pools. They also allow users to convert PNDA to BAMBOO, and earn a portion of the swap fees. In addition users can swap PNDA for RHINO in exchange for a 12% fee to get access to higher, more exclusive, yield farms.
However, instead of allowing users to cash out immediately, their PNDA token earnings will be vested. The majority of the staking rewards gets locked away, and will unlock over time starting from next year. This makes sure that there’s a serious amount of value locked away, while it also attracts a different type of investor: one who’s aiming for more long-term growth.
PandaSwap is part of BAO Finance. This protocol exists on the Ethereum blockchain, launched in January 2021, and has the ambition to become a multi-chain project. They for example also have YetiSwap on the Avalanche blockchain.