Pancakeswap Launches Version 3 of Protocol on BNB and Ethereum Blockchains – Defi Bitcoin News
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On Monday, April 3, the decentralized exchange (dex) platform Pancakeswap launched version 3 of its protocol (v3) on the Binance Coin (bnb) and Ethereum blockchains. The new application aims to improve the performance of the dex protocol and reduce fees by implementing four levels of trading fees.
New Features and Improved Capital Efficiency Offered in Pancakeswap Version 3
On Monday, Pancakeswap launched version three of its protocol on the Ethereum and Binance Coin (BNB) blockchains, following an announcement in the first week of March. “It’s Pancakeswap v3 Day. Tell us how excited you are,” the dex platform’s official Twitter account posted. According to Pancakeswap developers, the latest iteration features improved capital efficiency, allowing liquidity providers to concentrate capital more efficiently.
While Pancakeswap v2 features a standard fee of 0.25%, users of Pancakeswap v3 can choose from four different fee tiers, which include 0.01%, 0.05%, 0.25%, and 1%. Pancakeswap developers explained that soon a VIP rewards program for v3 will be introduced, and dex traders will be able to obtain VIP trading fee rebates. So far, both v3 platforms on Ethereum and Binance Coin (BNB) have seen small volumes emerge.
At the time of writing, Pancakeswap v3 on Ethereum has very little volume, with only $3,672 recorded since its launch. Currently, the Ethereum-based Pancakeswap v3 pairs wrapped ethereum (WETH) with the stablecoins USDC and USDT. In contrast, Pancakeswap v3 on Binance Coin (BNB) has significantly more volume, with $1.02 million in settled swaps recorded at the time of writing. Currently, the BNB version has seven coins and 14 different trading pairs.
At 64.83%, the majority of trades on Pancakeswap v3 Binance Coin (BNB) version are associated with wrapped BNB (WBNB) and the stablecoin tether (USDT). Meanwhile, Pancakeswap v2 is currently the third-largest dex platform, with $106.61 million in 24-hour trade volume. Pancakeswap v2 has significantly more coins and pairs, with 3,286 crypto assets and 5,728 different trading pairs. The second version of Pancakeswap’s dex has received approximately 5,477,351 visits in the last 30 days.
What do you think the future holds for Pancakeswap v3 and decentralized exchanges in general? Share your thoughts in the comments section below.
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