Since Uniswap's code was open sourced by its license in April 2021, PancakeSwap's AMM V3 TVL has become an undisputed leader in terms of Defi DeFi liquidity. According to DefiLlama data, the total value lock of PancakeSwap V3 has soared to 125 million US dollars. Uniswap still stands out as the biggest decentralized exchange in the DeFi universe, with a TVL of more than 4 billion US dollars.

PancakeSwap V3 was soft-launched on the Ethereum and BNB network on April 3, 2021 and brought a bundle of improvements and much lower fees. Following features have been added to the PancakeSwap V3 such as capital productivity enhancements for the liquidity providers, allowing them to channelize funds in smaller price outlines for increased revenue from the same amount of donations. There are four new trading charge tiers ranging from 0.01% to 0.05%, 0.25% to 1%, making up for a change from the standard 0.25% fees applicable in V2.

In the future, PancakeSwap V3 will be adding two new features, namely V3 VIP selling rewards program and position administration functions. The former is a tiered structure which will reward traders for their trading turnover with exclusive benefits, such as 5% trading charge refund, thereby encouraging more traffic on the platform and eventually, increased revenue for PancakeSwap. The position administration function will let liquidity suppliers control their positions, a great way to keep track of the market.

All in all, PancakeSwap V3 has become a complete package to provide users with faster and more cost-effective services, while allowing liquidity suppliers to capitalize on greater income opportunities. Hence, PancakeSwap is definitely one to watch in the Defi arena and is a possible contender to catch up to Uniswap in the race of Defi dominance.



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