The third version of the PancakeSwap DeFi protocol is live on the Ethereum and BNB Chain blockchains.
PancakeSwap developers have confirmed the launch of the third version of their DeFi protocol on Monday. Announced earlier last month, PancakeSwap V3 is focused on liquidity provision to improve the trading experience within the protocol.
PancakeSwap is a decentralized token exchange platform or DEX, which has at least $ 2.440 million dollars in total value deposited (TVL) in their smart contracts.
The new version of the decentralized protocol introduced on Monday is available on both the BNB Chain and Ethereum blockchains.
PancakeSwap V3 introduces new features and benefits for LPs
The new version of PancakeSwap integrates new functionalities that optimize the platform's liquidity, as well as lower trading fees for traders, higher rewards to incentivize liquidity providers or LPs, and new tools to optimize the user experience.
The main focus of PancakeSwap V3 is on achieving greater capital efficiency by allowing users to allocate their liquidity across smaller, customizable price ranges. This feature provides greater opportunities for PancakeSwap users acting as liquidity providers, especially in stablecoin liquidity pools.
“LPs can concentrate their capital in smaller price intervals and choose a custom price range when providing liquidity.”
In addition to the above-mentioned features, PancakeSwap developers are preparing other improvements in the future, such as the launch of a new trading rewards program called VIP V3 and the “Position Manager” feature, which will eliminate the need for manual position management for liquidity providers.
With the launch of these new features, PancakeSwap aims to become the most efficient and flexible DEX in the DeFi ecosystem to compete with its major counterparts, such as Uniswap and SushiSwap.
Continue reading: What is CAKE burned for weekly on PancakeSwap?
