DeFi Exchange PancakeSwap to Deploy Version 3 on BNB Smart Chain in April
The project burned $27 million in its CAKE tokens on Monday.
PancakeSwap, a leading multichain decentralized exchange (DEX), will launch its version 3 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 revenue on each swap and distributing a cut of that revenue 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 also is deployed on the 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.
- PancakeSwap burned $27 million on cake tokens in a planned event during European morning hours on Monday. Burns refers to the permanent deletion of tokens from the total supply, which may contribute to price increases if demand outstrips supply.
- The 7 million burned tokens were generated from fees earned from PancakeSwap's trading, lottery, non-fungible-token marketplace and prediction markets, the company said in a tweet.
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