Inside the Binance Smart Chain ecosystem, it seems like PancakeSwap is the clear winner with a TVL of $11.51 billion!
The Binance Smart Chain ecosystem does have quite the number of players and within its ecosystem, PancakeSwap is reigning with the highest TVL or total value lock. This means that compared to the rest, there are more investors in the exchange earning passive profits by providing liquidity or farming.
PancakeSwap Wins Top 10 BSC DeFi Projects Based on TVL
A certain tweet by BscProject showed the top 10 TVL for BSC DeFi projects and clearly, PancakeSwap took the head of the list. Quite surprisingly, however, Venus came in second with Qubit shortly following.
Within the ecosystem, there were also other players like BakerySwap, MDEX, and Alpaca Finance that are still somewhat popular to other players.
Here are the Top 10 TVL in BSC DeFi:
PancakeSwap
- Total Value Locked: 11.51 billion USD
Venus
- Total Value Locked: 2.74 billion USD
Qubit
- Total Value Locked: 2.67 billion USD
Tranches
- Total Value Locked: 1.20 billion USD
BakerySwap
- Total Value Locked: 780.33 million USD
Biswap
- Total Value Locked: 729.55 million USD
MDEX
- Total Value Locked: 682.85 million USD
Ellipsis
- Total Value Locked: 646.69 million USD
Alpaca Finance
- Total Value Locked: 642.28 million USD
Rabbit Finance
- Total Value Locked: 559.54 million USD
Aside from PancakeSwap taking the clear reins when it comes to the top TVL in the BSC space, another project is also gaining attention. Within the tweet, BscProject also mentioned the “project of the week,” ApolloX.
Binance Smart Chain is the blockchain that is owned by none other than Binance which although has been criticized for being more centralized than decentralized, has still a vast reach in the crypto sphere.
How Could PancakeSwap Crash?
Despite criticism, PancakeSwap has remained one of the top DeFi exchanges aside from of course, UniSwap which is the DEX being used on Ethereum. PancakeSwap can somehow equate to the BSC’s version of UniSwap.
The benefits of staking on projects with larger TVL is that there is less chance of them collapsing due to the strong backing behind them. This, of course, doesn’t mean that they will be the strongest forever.
The worst case scenario is if investors locking in their crypto on say PancakeSwap would decide to pull out at the same time. This would dramatically impact the TVL of the project.
There is, however, a countermeasure for this and this is by reducing or increasing the rewards depending on the TVL on the platform.
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It is important to always tread carefully as staking on these platforms do not always guarantee profit. This means if investors purchase a crypto at its height and stake it, despite generous returns, they would still be losing a lot of money due to the price impact.