PancakeSwap, the popular decentralized exchange (DEX), has announced the launch of its highly-anticipated third version on both the Binance Smart Chain and Ethereum blockchains. This exciting news brings a host of new features, including cutting-edge tools, low transaction fees, and increased profitability for liquidity providers.
Major changes
1.Enhanced capital efficiency
Now, users can provide liquidity with precision and customization that would make a Swiss watchmaker proud. It's all about finding that sweet spot in the price range and setting the most appropriate fee. This will increase your profits and minimize slippage. Especially in stablecoin pairs, where prices are more predictable.
The team also created additional tools for tracking statistics and calculating earnings to improve pool management. These include an automatic APR display (updated in real-time) and an enhanced ROI calculator that evaluates profitability and variable loss metrics.
2. Fee reduction
In the third version of PancakeSwap, fee tiers ranging from 0.01% to 1% are introduced, instead of the stable 0.25%. All options can be present in any pair and are not mutually exclusive. However, in the end, the fee level will be set based on the common interests of traders and liquidity providers.
The lowest fee of 0.01% will be set for stablecoin pairs, making it very affordable to swap such assets. Ones with lower stability will have a fee of 0.05%. In case of unexpected situations or decreased activity, the fee percentage will be increased to 0.25%.
The maximum fee of 1% will be set for very risky or new assets. This will encourage liquidity providers to contribute more funds and users to access such emerging projects.
3. Enhanced intelligent router
This feature brings a major change to trading by allowing users to simultaneously access liquidity from all protocols (V2, V3, StableSwap). Traders may easily disable unwanted ones.
4. Farms
PancakeSwap V3 has kept its farming feature, where users can stake liquidity provider (LP) tokens and earn CAKE rewards. Flexible settings allow users to place multiple positions and remove them if needed.
However, to earn CAKE tokens, the current price must be within the chosen range set by the liquidity provider. The algorithm will reward smaller intervals with greater incentives, further reducing slippage.
Partner program
To participate in the PancakeSwap V3 partnership initiative, you need to have over 10,000 followers on social media, submit an application, and share your referral link once approved.
PancakeSwap V3's partnership program offers up to 20% commission (3% for regular trades) on referrals, giving partners the chance to earn passive income from their followers' activity. And the benefits aren't just one-sided: referred users also get a 20% discount on perpetual swap trading fees. The platform will soon roll out an updated dashboard to track referral statistics, making it easier for partners to monitor their earnings.
Summary
PancakeSwap's latest update is certainly impressive, but the platform has even more features in store this year. They plan to launch a farm with bCAKE rewards, VIP trader rewards such as discounts and tokens, an automatic liquidity position manager, and expanded limit orders. All of these tools will not only benefit existing users, but also attract new ones by offering a wide range of trading options.
