PancakeSwap, the decentralized exchange (DEX) platform with over 1.5 million unique users, has unveiled an upgraded version 3 (V3) on both Ethereum and BNB Chain. With the launch of V3, PancakeSwap promises to offer the cheapest fees and increased returns for liquidity providers (LPs) than its competitors such as SushiSwap and Uniswap.

Aiming to improve capital efficiency, the upgraded platform gives LPs the option to concentrate their capital into a particular price range and earn higher fees at the same deposit sum. PancakeSwap V3 also includes four different tiers of 0.01%, 0.05%, 0.25%, and 1% trade fees, an improvement in comparison to the single tier of 0.25% on V2. Every token pair can have a liquidity pool that caters to these fee tiers and always maintains a balance between the lowest fees for traders and optimized incentives for LPs.

Presently, two more features are on the PancakeSwap V3's list of additions. A “VIP” trading rewards program that majors in up to 5% trading fee rebate and a position manager feature are both in the process of being introduced. The VIP program would reward active traders for their trading volumes with exclusive incentives, possibly leading to more platform engagement and better profits. The position manager feature helps users manage their positions optimally based on fees and rewards rather than having to go through manual third-party integrations, making it easier to stay in range while earning rewards.

In terms of market value, PancakeSwap roughly had $2.5 billion total value locked (TVL) on Monday, while Uniswap had $3.9 billion by the same time. V3 also features Uniswap’s version 3 compatible tools, making it a promising candidate among its competitors in the decentralized finance sector.



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