By Nathan Ferguson
A well-known decentralized exchange (DEX) PancakeSwap has recently announced the launch of its Version 3 on two blockchains (including Ethereum and BNB chain).
The decentralized exchange has more than 1.5M new consumers and the latest upgrade will offer cost-effective on-chain trades in comparison with the other competitors of the platform such as Uniswap and SushiSwap.
PancakeSwap’s V3 Launches on BNB Chain and Ethereum
As per the developers at the platform, the company will witness a considerable increase in the profits given to the liquidity providers (LPs). The v3 of PancakeSwap additionally offers some features that elevate the capital efficiency of the platform.
The respective features take into account letting liquidity providers concentrate the capital on minor price ranges. This results in increased fee earnings generated from the analogous deposits, the developers added.
Version 3 of the decentralized exchange (DEX) will offer 4 diverse tiers of trading fees. These tiers will include 1%, 0.25%, 0.05%, and 0.01%. On the other hand, the former version of PancakeSwap provided only one tier implementing a 0.25% trading fee.
Each of the token pairs can possess a liquidity pool while asset pairs incline toward the tier having the most rewarding benefits for both traders and liquidity providers.
The respective approach is structured to guarantee that there remains a balance between the trading parties recompensing the most-decreased fee tier but still boosting the top possible liquidity from the liquidity providers. In the coming time, version 3 will have some additional features. A couple of new features include a position manager and a VIP project for trading rewards.
The VIP project constitutes a tiered ecosystem that offers rewards to the traders in return for the trading volume. Along with this, it also provides exclusive benefits like an opportunity to obtain a five percent rebate on trading fees.
This may result in increased activity on the platform in addition to improving the revenue generated by PancakeSwap.
The position manager will let traders conveniently deposit liquidity apart from optimizing that position in line with the rewards and fees, over time. The feature dismisses the requirement for doing manual calculations related to 3rd-party integrations. Additionally, it allows clients to automatically manage their positions as well as get rewards while remaining within range.
Both of the aforementioned features are at present going through their development stage and are anticipated to be launched shortly. Version 3 of the platform is additionally compatible with the entirety of the instruments developed for the 3rd version of Uniswap (considered the biggest decentralized exchange in terms of regular trading volumes and users).
Uniswap Version 3 Code Gets Ready to Forking with the Termination of BSL
PancakeSwap had more than $2.5B in its total value locked (TVL) while $3.9B is the TVL of Uniswap, as mentioned in the data provided by DeFiLlama. On the other hand, Uniswap’s developers are currently permitted to fork its v3 protocol because the platform’s Business Source License (BSL) ended on the 1st of this month.
Uniswap was recently launched on BNB Chain (the smart contract chain of Binance) following the voting by 55M holders of UNI tokens. The token holders favored a governance proposal presented by 0x Plasma Labs for the deployment of the protocol on the ecosystem of the BNB Chain for swapping and trading tokens.
The respective integration also permitted Uniswap to enter a liquidity pool with the developer community of BNB Chain.