The development team has announced the launch of PancakeSwap’s fourth version of the decentralized exchange (DEX). According to preliminary information, PancakeSwap V4 will debut on the Ethereum and BNB Chain networks in the third quarter of 2024.
Representatives from PancakeSwap informed CoinDesk that they plan to implement four new features for automated market makers (AMMs). They stated that this would make trading on the platform more efficient and accessible.
“PancakeSwap v4 code will be released under an open-source license,” stated head developer Chef Mochi. “It addresses the shortcomings of current AMMs, including inflexibility in pricing models for all assets, lack of CEX-level execution functions, impermanent loss for liquidity providers, and pricey on-chain gas fees for users.”
According to the team’s statement, PancakeSwap V4 will introduce a feature called contracts or “hooks,” allowing developers to add additional settings. For example, they can adjust the fee size and type of trading order. The creators of such contracts will be able to keep the fee for themselves or distribute it among interested parties.
Another new feature of PancakeSwap V4 will be user liquidity pools, which are expected to prevent sharp price fluctuations during large token sales or purchases.
Additionally, developers plan to implement a solution called Singleton, which consolidates all pools into one contract. This initiative will reduce deployment costs by 99%, according to the announcement.
Furthermore, the team aims to reduce gas consumption by proposing collective transaction-based calculations.
According to DeFiLlama, PancakeSwap’s total locked value (TVL) has exceeded $2.39 billion.
In the last 7 days, the CAKE token has grown by more than 40%, reaching $5.16, according to CoinGecko data. Its market capitalization has reached $1.17 billion. At the time of publication, the asset is trading near $4.77.
In October 2023, the decentralized exchange introduced the Position Manager feature, allowing users to store assets and automatically send them to liquidity pools.
In November, the PancakeSwap team launched a GameFi platform supporting nine networks and focusing on game creation. It was also reported that the platform plans to reduce the supply of CAKE tokens to 450 million.
