PancakeSwap, one of the largest decentralized exchanges (DEX) with over 1.5 million unique users, launched its Version 3 on Ethereum and BNB Chain networks on Monday. The new platform boasts the lowest fees for on-chain trades, compared to its counterparts such as SushiSwap and Uniswap. PancakeSwap V3 also offers increased returns for liquidity providers with features that enhance the platform's capital efficiency. Liquidity providers can now concentrate their capital on smaller price ranges to earn higher fee earnings from the same amount of deposits.
The upgraded version will introduce four different trading fee tiers ranging from 0.01% to 1%, with each token pair can have a liquidity pool for each fee tier. The exchange aims to ensure a balance between traders paying the lowest fee tier while incentivizing the highest possible liquidity from liquidity providers.
In addition, PancakeSwap V3 is planning to introduce two new features: a V3 "VIP" trading rewards program and a position manager feature.
The VIP program is a tiered system that rewards traders based on their trading volume with exclusive benefits, such as up to a 5% trading fee rebate. The position manager feature allows traders to easily deposit liquidity and optimize their position based on fees and rewards over time. The tool eliminates the need for manual calculations for third-party integrations, enabling users to adjust their positions and earn fee rewards automatically while staying within range.
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