- PancakeSwap V3 was launched on Ethereum and BNB Chain.
- CAKE price surged to a high of $3.83 following the news.
- The upgraded platform will offer the lowest fees for on-chain trades.
At press time CAKE price was up 2.13% to trade at $3.77 a day after PancakeSwap declared the launch of its version 3 on Ethereum and BNB Chain.
The upgraded platform will provide users the lowest fees for on-chain trades compared to its rivals like Uniswap and SushiSwap. It will also offer improved returns for liquidity providers.
Factors Introduced by the PancakeSwap V3
The upgraded platform enables liquidity providers to concentrate their capital on narrower ranges leading to higher returns.
PancakeSwap V3 also introduces four distinct trading fee tiers for users. The fee tiers are 0.01%, 0.05%, 0.25%, and 1% compared to the general 0.25% tier that PancakeSwap V2 was offering. Furthermore, each token pair can have a liquidity pool for each fee tier.
The PancakeSwap team also plans to introduce two new features in the future. These features include a VIP trading reward program and a position manager feature. The exchange’s VIP program is a tiered system that rewards traders with items like up to 5% trading fee rebates based on their trading volume.
The position manager feature will allow traders to easily deposit liquidity and optimize their positions based on rewards and fees over time. This feature will eliminate the requirement for manual calculations from third-party integrations thus allowing users to automatically adjust their positions to maximize on returns.