Maximize Earnings with PancakeSwap V3: 0.01% to 1% Trading Fees!
• PancakeSwap announced the launch of V3 on the Ethereum layer-2 network Linea, as part of its attempts to generate additional revenue.
• The second-largest decentralized exchange (DEX) PancakeSwap [CAKE] followed the broader market trend, extending its losing streak in August.
• PancakeSwap claimed that with the capital efficiency feature of V3, liquidity providers (LPs) would be able to significantly enhance their earnings.
PancakeSwap Launches On Ethereum Layer-2 Network
PancakeSwap has announced the launch of V3 on the Ethereum layer-2 network Linea, in an effort to generate more revenue and increase user activity on their decentralized exchange (DEX). This comes as DEXs have seen decreasing trade volumes over the last three months, with August set to record the lowest monthly volume for the year per data from DeFiLlama.
V3 Offers Maximum Capital Efficiency
PancakeSwap claims that V3 will offer maximum capital efficiency and a flexible trading fee structure. Fees and user activity on the DEX continued its slide in August; however, despite this slump, PancakeSwap is looking for ways to stay ahead of competition with this strategic expansion plan. With its capital efficiency feature of V3, liquidity providers (LPs) can significantly enhance their earnings up to 4000x compared to v2. Furthermore, traders are provided more flexibility when it comes to choosing a favorable fee tier ranging from 0.01% to 1%.
Introducing Linea Rollup
Linea is a zero-knowledge Ethereum Virtual Machine (zkEVM) rollup which was introduced by Metamask developer ConsenSys back in July 2023. It allows users to combine multiple transactions into one single transaction before submitting it onto the mainnet blockchain and provides scalability capabilities while keeping costs low for users wanting access to DeFi applications like PancakeSwap’s V3 version.
Slippage And Fees On The Decline
In addition to improved capital efficiency features offered by pancake swap’s new version on linea ,the slippage and fees are also reduced due lower gas fees associated with running transactions on layer 2 networks .The ability for users/investors /liquidity providers/traders who use pancakeswap will now be able enjoy these benefits at more competitive rates than ever before .This is expected to lead increase in usage/trading activities especially during times when ethereum gas prices are high .
Overall ,the introduction of pancakeswaps new version 3 offers traders/users better features such as increased capital efficiency ,flexible fee structures and lower gas fees .These changes should help attract more users/investors onto pancakeswaps platform leading increase in trading volumes overall .