DeFi
PancakeSwap AMM V3 has attracted $125 million in Total Value Locked. Developers forked the decentralized trading network Uniswap after its business source code license (BSL) ended on April 1.
Because the license is only good for two years, the Uniswap paper states that its code will be open-sourced on April 1 this year, as has been scheduled since the upgrade to the V3 edition in 2021.
The latest TVL of PancakeSwap AMM V3 has hit 125 million US dollars, according to DefiLlama data. With a TVL of over $4 billion, Uniswap remains one of the biggest decentralized exchanges in the DeFi network.
According to Coincu, PancakeSwap debuted Version 3 on the Ethereum and BNB Chain networks on April 3, with performance improvements and lower fees. Improved capital efficiency is a key feature of the upgrade, which includes a shift in how liquidity providers may spend money at specific price intervals.
PancakeSwap V3 also contains capital productivity improvements to the platform. According to the makers, they include allowing liquidity suppliers to concentrate their money on smaller price categories, resulting in higher fee earnings from the same amount of donations.
V3 allows liquidity providers to give liquidity by specifying a custom price range, allowing them greater control over capital expenditures in higher volume trading ranges. The update also includes four new trading charge tiers varying from 0.01% to 0.05%, 0.25% to 1%, a change from V2’s standard 0.25%.
In the future, PancakeSwap V3 will include two new features: a V3 VIP selling rewards program and a position administration function.
The VIP program is a tiered structure that rewards traders for their trading turnover with unique benefits such as the ability to receive a 5% trading charge refund, which may promote more platform activity and increase PancakeSwap’s revenue.
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