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Case Study: How SQD Supports PancakeSwap with Large-Scale Access to Multichain Data

SQD Editor

• 3 min read

Quick Facts

Description of PancakeSwap: PancakeSwap is a leading multichain DEX built on an automated market maker (AMM) model. It offers a superior DeFi experience with low transaction fees, high-speed trading, and a user-friendly interface. 

Chains served: BNB Chain, Ethereum, Aptos, Polygon zkEVM, Linea, zkSync Era, Base, Arbitrum One, and opBNB. 

Make or break feature: Fast indexing engine can handle millions of events and custom features to leverage advanced database functionalities. 

Using SQD for: Primary ETL (Extract, Transform, Load), aggregating onchain data and providing data needed for analytics internally and externally. 

Only possible with SQD: large-scale indexing and customization to serve multi-network analytics

How PancakeSwap discovered SQD

With its user-friendly interface, low fees, high volume of available trading pairs, and attractive Farming programs, PancakeSwap has quickly grown to a home of DeFi in crypto. While initially launched on BNB chain, the platform has since expanded to various networks, including non-EVM chains such as Aptos and ZKsync. 

Naturally, such an expansion presented some challenges, particularly on the technical front. As a DEX that prided itself on its friendly user interface, the team primarily aimed to ensure “a seamless and consistent user experience across different networks.” A part of accomplishing that involved “meticulous monitoring and proactive infrastructure maintenance.” An example of their dedication to consistent experimentation is implementing essential features such as the paymaster services and gas sponsorship to optimize transaction efficiency on ZKSync. 

Each network handles data uniquely, further exacerbating the complexity of monitoring and maintaining infrastructure. As they expanded across chains, the PancakeSwap team sought a tool that allowed them to Extract, Transform, and Load (ETL) all the on-chain data and make it available for analytics. When looking for a solution for the task, they discovered SQD. 

SQD in PancakeSwaps’ Data Stack 

The main goal PancakeSwap was trying to accomplish was “tracking users trading across multiple protocols and networks.” With a large user base and its history and activity on BNB chain v2 pools (a fast chain), it was crucial to “have a fast indexing engine capable of handling millions of pair events.” 

The team is now utilizing SQD as their primary ETL tool. This allows them to reindex quickly whenever needed, helping them maintain up-to-date data across all chains. Furthermore, PancakeSwap leveraged SQD’s custom features to “integrate with analytics-focused databases such as TimescaleDB or ClickHouse, offering superior performance and flexibility for all our data needs.”, as their Frontend Lead Chef Jackson points out. 

One of the standout features that PancakeSwap benefitted from was the flexibility of the SQD SDK. Chef Jackson explains that it allowed them to innovate and enhance their services. In practice, it has enabled: 

  • Tracking ERC20/ERC721 Balances Across All Chains: This capability enables us to offer comprehensive asset tracking capabilities to our users across multiple blockchain networks. Regardless of the network they utilize, our users can confidently manage and monitor their digital assets.
  • Monitoring All Transaction Activities on PancakeSwap: SQD enables detailed analytics on every aspect of transaction activities on our platform, including trades, swaps, and other interactions. This deep insight enhances operational transparency and provides valuable analytics for our team and users to make informed decisions.

He also describes the migration as smooth, highlighting the support from SQD’s archive and RPC providers as critical drivers to ensure a seamless transition. Although he elaborates further that some effort went into customizing the SDK to fit their needs, it was a manageable challenge worth the time and resources.  

On working with the SQD team. 

On working with the SQD team, Chef Jackson concludes: “Our experience collaborating with the SQD team has been constructive and supportive. They have consistently assisted us throughout the integration process, offering valuable guidance and technical expertise as needed.”

All the quotes and details were kindly provided by Chef Jackson at PancakeSwap.