Version 3 of the PancakeSwap DEX is also looking to introduce a “VIP” trading rewards program and a position manager feature in the future.
PancakeSwap DEX has released Version 3 on Ethereum and BNB Chain, offering improved performance and lower fees. Version 3 reportedly features four different trading fee tiers of the cheapest on-chain trading fees among decentralized exchange contemporaries. Notable counterparties, in this case, include Uniswap and SushiSwap.
PancakeSwap’s promoted trading fee levels are 0.01%, 0.05%, 0.25% and 1%. These fee tiers compare favorably to DEX Version 2’s previous single tier of 0.25%.
According to the developers, PancakeSwap DEX Version 3 also offers higher returns for liquidity providers. This implies that liquidity providers can efficiently allocate capital in specific price ranges with increased capital efficiency. The developers of the exchange can earn higher commission earnings from the same deposit amounts by allocating capital in smaller price ranges.
PancakeSwap DEX Version 3 for the balance between low-cost traders with high liquidity.
The latest version of PancakeSwap’s automated market making platform is designed to create a balance between traders paying the lowest fees and the highest cumulative LP liquidity. By offering a liquidity pool of token pairs for each fee level, PancakeSwap DEX version 3 sees asset pairs move towards more rewarding levels.
In the previous pancake swap version, the liquidity of the providers was evenly distributed along the price curves of the trading pairs. The decentralized exchange identified this pattern as inefficient because assets typically trade within specific ranges.
Version 3 of PancakeSwap seeks to introduce two new features 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 exclusive benefits. These benefits include a 5% trading fee rebate which could generate more activity on PancakeSwap and increase your earning potential.
Meanwhile, PancakeSwap’s position manager feature makes it easy for the trader to deposit liquidity and optimize positions seamlessly. The tool automatically allows users to adjust their position and fee rewards, eliminating the need for manual third-party integration calculations.
PancakeSwap version 3 is compatible with all tools built for Uniswap version 3. Additionally, as of Monday, PancakeSwap, which has more than 1.5 million unique users, had more than $2.5 billion in total value locked (TVL). Meanwhile, DefiLlama data reported that Uniswap had a TVL of $3.9 billion today.
Arbitration Controversy of chain transfer of 50 million
In other DeFi-related news, Arbitrum recently addressed its unauthorized ARB transfer controversy. The Ethereum Layer 2 protocol governance platform, the Arbitrum Foundation, recently dumped 50 million ARB tokens onto the chain without community approval. However, amid the backlash, Arbitrum explained that it sold ARB in the interest of the DAO. The Foundation said it lent ARB 40 million of the total chain transfer to a financial markets player. Arbitrum added that it converted an additional 10 million ARB tokens into stablecoins to fund ongoing operating expenses. The Foundation also said that it would not download any more tokens before the conclusion of its Arbitrum Improvement Proposal (AIP-1) ratification exercise. As it stands, 70% of the community is against the proposal.
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Tolu is a Lagos-based blockchain and cryptocurrency enthusiast. He likes to demystify crypto stories down to the basics so that anyone anywhere can understand them without too much prior knowledge. When he’s not up to his neck in crypto-stories, Tolu likes music, loves to sing, and is an avid movie buff.
