PancakeSwap Launches Perpetual Contracts in Partnership with ApolloX

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PancakeSwap, one of the leading decentralized exchanges (DEXs) on the BNB Smart Chain, has taken a major step forward in expanding its trading offerings. The platform has officially launched perpetual contracts, marking a significant milestone in its mission to become the largest decentralized trading venue in the crypto space. This powerful new feature is made possible through a strategic collaboration with ApolloX, a prominent player in the decentralized derivatives market.

👉 Discover how to start trading perpetuals with low fees and high leverage today.

This upgrade empowers users with advanced trading tools, including leveraged long and short positions, deeper liquidity, and an intuitive interface designed for both beginners and experienced traders. Most importantly, it opens up new utility and value accrual mechanisms for CAKE, PancakeSwap’s native token.

What Are Perpetual Contracts? 📉 📈

Perpetual contracts—also known as perps or perpetual swaps—are a type of derivative product that allows traders to speculate on the future price of an asset without an expiry date. Unlike traditional futures contracts, which settle on a specific date, perpetuals can be held indefinitely, making them ideal for dynamic market conditions.

Originally introduced by BitMEX, perpetual contracts have become a cornerstone of crypto trading due to their flexibility and efficiency. Traders use leverage to amplify their exposure, meaning they only need to deposit a fraction of the total position value as margin. For example, a trader can open a $10,000 BTC/USDT position with just $1,000 (10x leverage), significantly improving capital efficiency.

These contracts support both long (buy) and short (sell) positions, enabling traders to profit in rising or falling markets. This is especially valuable during periods of high volatility. Additionally, perpetual contracts allow access to assets not natively available on BNB Smart Chain, as users can gain exposure through synthetic pricing without holding the underlying asset.

Strategic Partnership with ApolloX 🤝

PancakeSwap’s perpetual trading functionality is built in collaboration with ApolloX Finance, leveraging its robust infrastructure to deliver a seamless and secure experience. The system combines off-chain order book matching with on-chain settlement, ensuring fast execution while maintaining the transparency and decentralization that DEX users expect.

Key features include:

Because the trading engine operates off-chain but settles on-chain, users benefit from low latency and reduced gas costs without sacrificing security. This hybrid model represents a next-generation approach to decentralized derivatives.

For those looking to dive deeper into how perpetual trading works, ApolloX provides comprehensive educational resources covering everything from basic concepts to advanced strategies. These guides are fully applicable to PancakeSwap’s implementation and are highly recommended for new users.

👉 Learn how to maximize your trading performance using advanced order types and risk management tools.

Trading Fees and CAKE Payment Discounts 🈹️

One of the most exciting aspects of this launch is the enhanced utility for CAKE holders. Trading fees on PancakeSwap’s perpetual market are structured as follows:

However, users who choose to pay fees in CAKE receive a 5% discount, reducing rates to:

Fees can also be paid in APX (ApolloX’s native token) or USDT, but CAKE remains the default and most cost-effective option. To take advantage of the discount, users must ensure CAKE is deposited into their perpetual trading account.

This creates a direct incentive for holding and using CAKE, reinforcing its role within PancakeSwap’s expanding ecosystem.

Benefits for CAKE Holders: Increased Token Burns 🔥

Beyond payment discounts, the perpetual contracts feature introduces a powerful mechanism for value accrual: token burning.

A portion of every transaction fee collected—20%—will be used to burn CAKE tokens, permanently removing them from circulation. The remaining 80% goes toward:

As trading volume grows, so does the burn rate—creating deflationary pressure on CAKE supply. This aligns user activity with long-term token value appreciation.

Moreover, as the platform matures and operational efficiency improves, PancakeSwap plans to revisit the burn ratio based on community feedback. Future proposals may increase the percentage allocated to burns, further enhancing scarcity and demand.

Frequently Asked Questions (FAQ)

Q: Do I need KYC to trade perpetuals on PancakeSwap?
A: No. PancakeSwap’s perpetual contracts are fully decentralized and non-custodial. There is no KYC required—you retain full control of your funds at all times.

Q: How does leverage work in perpetual contracts?
A: Leverage allows you to open larger positions with less capital. For example, 10x leverage means you can control $1,000 worth of assets with just $100 of margin. However, higher leverage increases both potential gains and risks, including liquidation.

Q: Can I trade assets not on BNB Smart Chain?
A: Yes. Perpetual contracts enable synthetic exposure to various assets—even those not originally available on BSC—by tracking their market price through oracles.

Q: Where are my funds stored when trading?
A: Your assets remain in your wallet. Trades are executed via smart contracts, meaning you never transfer custody of your tokens to a third party.

Q: How often are CAKE tokens burned?
A: Burns occur continuously as fees are collected. The process is automated and transparent, with data available on-chain for verification.

Q: Is there a mobile app for perpetual trading?
A: While there's no dedicated app yet, the desktop interface is fully responsive and accessible via mobile browsers.

What’s Next for PancakeSwap?

The launch of perpetual contracts is just the beginning. PancakeSwap plans to roll out a launch campaign soon to incentivize user adoption, including rewards for early traders and volume-based bonuses.

Future updates may include:

As the ecosystem evolves, PancakeSwap continues to strengthen its position as a full-featured decentralized trading hub—offering spot, staking, farming, and now derivatives—all under one roof.

👉 Start trading perpetuals now and experience the next evolution of DeFi trading.

Final Thoughts

PancakeSwap’s introduction of perpetual contracts through its partnership with ApolloX represents a bold leap into the world of decentralized derivatives. By combining deep liquidity, low fees, strong security, and meaningful utility for CAKE holders, the platform sets a new standard for DEX innovation.

Whether you're a seasoned trader or new to leveraged products, this update offers powerful tools to navigate volatile markets while contributing directly to the growth and sustainability of the PancakeSwap ecosystem.

Stay updated via PancakeSwap’s official channels for upcoming announcements—and remember to always trade responsibly.