PancakeSwap V3 is now officially live on BNB Chain!
What is PancakeSwap?
PancakeSwap is a leading AMM DEX and yield farm on BNB Chain. According to DappBay, over 1.34 million users made 11.66 million transactions on PancakeSwap in the last 30 days.
PancakeSwap recorded over $2.18 billion in liquidity on the platform and registered the second-highest trading volumes in the DeFi market.
PancakeSwap is one of the most popular DeFi dApps to trade BNB. According to DefiLlama, over 30% of PancakeSwap V3 users transacted WBNB, over 17.8% transacted USDT, and 15.08% transacted CAKE, the native token of PancakeSwap.
What is PancakeSwap V3?
PCS V3 or PancakeSwap V3 is the latest upgrade of PancakeSwap. PancakeSwap V3 improves on PancakeSwap V2 by introducing lower trading fees, higher earnings for LPs, higher capital efficiency, a trading rewards program, and more. The improvements of PancakeSwap V3 make it one of the most efficient, flexible, and user-friendly DEXs in Web3.
Key Highlights of PancakeSwap V3:
- Up to 25x lower trading fees for traders (as compared to V2)
- Higher fee earnings for LPs (with the same amount of deposits as V2)
- Up to 4000x higher capital efficiency
- A new V3 “VIP” Trading Rewards Program (Coming Soon)
- Position Manager Feature (Coming Soon)
Key Features of PancakeSwap V3
Some of the key features of PancakeSwap V3 include better capital efficiency, introducing trading fee tiers, finding the best trade routes, advanced built-in limit order, VIP trading rewards, position manager, and a new affiliate program.
1. Capital Efficiency
PancakeSwap V3 introduces custom price ranges for Liquidity Providers (LPs) so traders can concentrate their capital on smaller price intervals. Stablecoin pools will benefit from this the most since the prices of assets hardly change compared to each other.
Moreover, PancakeSwap V3 is built on top of Uniswap V3 and is compatible with tools built for Uniswap. Don’t forget to check out the latest on Uniswap integrating BNB Chain.
2. Trading Fee Tiers
PancakeSwap V2 had a flat trading fee of 0.25%. PancakeSwap V3 introduces a new tier system with 4 trading fee tiers:
- 0.01% - For assets such as stable pairs with low impermanent loss (for example USDT/USDC).
- 0.05% - For assets with higher impermanent loss or less robust liquidity.
- 0.25% - For more exotic or less frequently traded assets.
- 1% - For least frequently traded assets or assets with a high impermanent loss.
3. Find the Best Trading Route
The improved smart router brings an overall improvement to the trading engine by adding split routing capability and the ability to utilize all possible liquidity in the protocol. The new smart router intelligently finds the best trading route by utilizing liquidity from PancakeSwap V3, V2, and StableSwap with multi-hop and split routing capabilities.
4. Advanced Built-in Limit Order [Coming Soon]
PancakeSwap V3 will soon introduce an advanced built-in limit order with improved liquidity provisioning, improved trading fee rewards to LPs, automatic APR display, improved ROI calculator, active liquidity farming, and liquidity farming with bCAKE.
5. VIP Trading Rewards Program [Coming Soon]
PancakeSwap V3 will soon introduce a VIP trading rewards program where VIPs will trade to earn from a prize pool to win up to a 5% trading fee rebate. To qualify, users must have a certain amount of locked CAKE and an active Pancake NFT Profile requiring 1.5 CAKE. Stay tuned for the minimum threshold requirements.
6. Position Manager [Coming Soon]
PancakeSwap V3 will soon introduce an automatic position managing feature, enabling users to easily deposit liquidity with just one click. This built-in tool eliminates the need for manual calculations or third-party integrations, allowing users to automatically adjust their positions and earn fee rewards while staying within range.
7. Affiliate Program
PancakeSwap also announced the launch of a first-ever official affiliate program with V3. Opinion leaders with a minimum of 10,000 followers across social media and an interest in the DeFi space can qualify for the affiliate program. Affiliates earn a 3% commission on trading fees generated by referees on their engagement with most swap and stableswap trades and a 20% commission for most perpetual trading fees generated by referees on BNB Chain.
Catch the official announcement on Twitter covered by BSCDaily.
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