[Discussion] Expanding PancakeSwap Revenue Through a Lending & Borrowing Business Unit

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Hello PancakeSwap community,

I would like to start a discussion around expanding PancakeSwap’s revenue model beyond swap fees by introducing a lending and borrowing business unit, inspired by proven protocols such as Aave.

At the moment, PancakeSwap’s core income is strongly tied to trading activity and swap commissions. While this model has been highly successful, it also means that revenue is closely linked to market volatility and trading volume. A lending vertical could serve as a complementary and more stable source of income.

Thanks to PancakeSwap’s large retail user base, the platform is uniquely positioned to deploy significant lending and borrowing volume without relying on aggressive incentives or taking excessive risk. Many users already hold idle assets that could be supplied as liquidity, while others seek access to capital without selling their crypto holdings.

Potential use cases include:

  • Supplying assets to earn yield in a low-risk, overcollateralized model.
  • Borrowing crypto against crypto collateral.
  • Accessing liquidity while maintaining long-term exposure to assets.

This initiative could be designed with a strong focus on risk management, using conservative collateral factors, robust liquidation mechanisms, and potentially phased rollouts. The lending unit could be:

  • Built natively by PancakeSwap,
  • Integrated via partnerships with existing lending protocols,
  • Or deployed as a modular product within the PancakeSwap ecosystem.

From a strategic perspective, this could:

  • Diversify PancakeSwap’s revenue streams.
  • Increase TVL and capital efficiency.
  • Strengthen user retention by offering a broader financial toolkit.
  • Create additional value for CAKE holders.

This post is intended as an initial discussion to gather community feedback before exploring any formal proposal.

I would appreciate thoughts on:

  • Whether a lending and borrowing vertical aligns with PancakeSwap’s long-term vision.
  • Which implementation model would be most appropriate.
  • Key risks the community believes should be addressed first.

Looking forward to your feedback and discussion.

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