PancakeSwap, a leading multichain decentralized exchange (DEX), will launch its version 3 (V3) in the first week of April, developers told CoinDesk on Monday.
PancakeSwap, like other DEXs, relies on smart contracts to allow users to swap cryptocurrencies without intermediaries, earning revenues on each swap and distributing a cut of those revenues to liquidity providers in the form of rewards.
V3 will be available only on BNB Smart Chain (BSC), which is known for its fast and low-cost transactions. PancakeSwap is currently deployed over BSC, Aptos and Ethereum networks.
The upgrade adds features such as improved liquidity provisioning, competitive trading fees, trading incentives and yield farming tools.
Such products are expected to attract more capital, increase protocol revenue, and ultimately bolster PancakeSwap's value proposition among investors.
The DEX holds over $2.4 billion in locked tokens as of Monday. It has processed $438 billion in trading volume since its April 2021 launch, making it among the most widely used DeFi protocols. Its native cake (CAKE) tokens have a market capitalization of $670 million.
PancakeSwap burned $27 million cake tokens in a planned event in European morning hours on Monday. Burns refers to the permanent deletion of tokens from the total supply, which may contribute to price rises in the future as demand increases.
The 7 million burned tokens were generated from fees earned from PancakeSwap's trading, lottery, NFT marketplace and prediction markets, the company said in a tweet.
🔥 7,153,999 $CAKE just burned - that’s $27M!💰 Trading fees (Swap and Perpetual): 255k CAKE ($958k) +80%🔮 Prediction: 84k CAKE ($315k) +31%🎟️ Lottery&Pottery: 35k CAKE ($132k) +44%🔒 NFT Market, Profile & Factory: 560 CAKE ($2k) +4% pic.twitter.com/PFeMFxIN9c
— PancakeSwap 🥞 #Multichain (@PancakeSwap) March 6, 2023
