PancakeSwap DEX version 3 also introduces a “VIP” trading rewards program and a position manager feature.
PancakeSwap DEX Launches Version 3 Ethereum and the BNB chain, offering better performance and lower fees. Version 3 reportedly introduces four different trading fee tiers, the cheapest on-chain trading fees among the decentralized exchange’s contemporaries. Notable counterparts, in this case, include Uniswap and sushiswap,
PancakeSwap’s reported trading fee levels are 0.01%, 0.05%, 0.25% and 1%. These fee levels compare favorably to the DEX’s previous version 2 single level of 0.25%.
According to the developers, PancakeSwap DEX Version 3 also offers increased returns for liquidity providers. This means that liquidity providers can efficiently allocate capital to specific price gaps with increased capital efficiency. Developers of the exchange can earn higher fee income from the same deposit amount by allocating capital at smaller price ranges.
PancakeSwap DEX Version 3 to balance between low fee traders with high liquidity.
The latest version of PancakeSwap’s automated market maker platform is designed to strike a balance between paying traders the lowest fees and the highest earned LP liquidity. By offering a token pair liquidity pool for each fee level, the DEX version of PancakeSwap sees 3 asset pairs moving towards the most rewarding levels.
in the previous pancake swap Version, liquidity from providers was spread evenly along the trading pair price curves. Decentralized exchanges recognize this pattern as inefficient as assets typically trade within specific boundaries.
Version 3 of PancakeSwap introduces two new features that are still in development. This is a version 3 “VIP” trading rewards program and a feature for position managers. As a tiered system, the VIP program will reward traders for trading volume by offering special perks. These benefits include a 5% trading fee discount which could potentially spur more activity on PancakeSwap and increase its revenue potential.
Meanwhile, PancakeSwap’s Position Manager feature facilitates seamless trader liquidity deposit and position optimization. The tool automatically allows users to adjust their positions and fee rewards, eliminating the need for third-party integration manual calculations.
PancakeSwap version 3 is compatible with all devices built for version 3 of Uniswap. Furthermore, as of Monday, PancakeSwap, which boasts more than 1.5 million unique users, had more than $2.5 billion in total value locked (TVL). Meanwhile, Defilama data reported that Uniswap’s TVL stood at $3.9 billion today.
Arbitrum 50M on-chain transfer controversy
in other DeFirelated news, Mediation recently addressed Its Unauthorized ARB Transfer Dispute. The Arbitrum Foundation, the governance platform for the Ethereum Layer 2 protocol, recently offloaded 50 million ARB tokens on-chain without community approval. However, amid the backlash, Arbitrum explained that it sold ARB in the interest of The DAO. The foundation said it loaned 40 million ARB from total on-chain transfers to a financial market player. Arbitrum said it converted an additional 10 million ARB tokens to stablecoins to fund ongoing operating expenses. The foundation also said that it will not launch any more tokens before the conclusion of the ratification exercise of its Arbitration Improvement Proposal (AIP-1). As it stands, 70% of the community is against the proposal.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to strip crypto stories down to the basics so that anyone anywhere can understand without a lot of background knowledge. When he is not delving deep into crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
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