PancakeSwap Launches V3, These Are The Benefits You Must Know!

JAKARTA - Decentralized trading platform (DEX) PancakeSwap launched Version 3 on the Ethereum and BNB Chain networks, offering better performance and lower fees.

This latest version introduces four different types of trading rates with the cheapest on-chain trading fees compared to other decentralized trading platforms such as Uniswap and SushiSwap.

PancakeSwap offers four different types of trading rates which are 0.01 percent, 0.05 percent, 0.25 percent, and 1 percent. All four types of trade rates are cheaper compared to PancakeSwap Version 2 which only offers one tariff rate of 0.25 percent.

According to the developer, PancakeSwap DEX Version 3 also offers higher returns for liquidity providers. This shows that liquidity providers can allocate capital efficiently at certain price intervals with better capital efficiency.

DEX developers can get a higher fee income from the same deposit amount by allocating capital over a smaller price range.

PancakeSwap Version 3: Low Fees with High Liquidity

The latest version of PancakeSwap's automated market maker platform is designed to strike a balance between the trader paying the lowest fees and the largest LP liquidity that can be accumulated. By offering token pair liquidity for each rate type, PancakeSwap DEX Version 3 sees asset pairs move towards the most profitable rate type.

In previous versions of PancakeSwap, liquidity from the liquidity providers was evenly distributed along the price curve of the trading pair. Decentralized exchanges consider this pattern inefficient because assets are usually traded within a certain price range.

PancakeSwap Version 3 plans to introduce two new features which are still under development. The first feature is the Version 3 "VIP" trading rewards program and the position manager feature. As a tiered system, the VIP program will reward traders based on trading volume by offering exclusive benefits.

These benefits include a 5 percent refund of trading fees which can grow more activity on PancakeSwap and increase its earning potential.

Meanwhile, PancakeSwap's position manager feature makes it easy to deposit trader liquidity and optimize positions seamlessly. This tool automatically allows users to customize their position and cost award, eliminating the need for third-party integration manual calculations.

PancakeSwap Version 3 is compatible with all tools created for Uniswap Version 3. As of Monday, PancakeSwap, which has more than 1.5 million unique users, has a total locked value (TVL) of more than US$2.5 billion (IDR 37.1 trillion). Meanwhile, DefiLlama data reports that Uniswap currently has a TVL of US$3.9 billion (IDR57.9 trillion).