decentralized exchange PancakeSwapattracts attention with the v4 version that it plans to offer to users in the third quarter of this year. This update aims to facilitate on-chain trading by providing a more cost-effective and efficient experience for traders on the Ethereum and BNB Chain networks.
PancakeSwap v4 will introduce four key features that will address the current limitations faced by automated market makers. These improvements aim to offer users a trading experience that rivals centralized exchanges.
These new features include “Hooks”. Hooks offers developers customizable plugins with which they can change transaction fee structures and order types. Additionally, private pool types are designed to reduce excessive price fluctuations by providing more accurate determination of asset prices.
PancakeSwap v4’s Singleton feature greatly reduces distribution costs by combining all pools into a single contract, while the Flash Accounting feature addresses the issue of rising gas fees during market volatility by reducing gas consumption.
PancakeSwap Is Ambitious About Its New Feature
PancakeSwap’s lead developer, Chef Mochi, revealed in an exclusive conversation with CoinDesk that the code base for v4 will be released under an open source license. This approach not only increases the transparency of the platform but also encourages community participation.
Chief Mochi stated that PancakeSwap v4 will address the challenges of existing AMMs by providing flexibility for asset pricing models, application functions, and liquidity providers. He also emphasized that it is an update that directly responds to the community’s demand for lower on-chain gas fees.
PancakeSwap v4 is seen as a significant step in the field of decentralized finance and has great expectations within the DeFi community. With its user-friendly approach and enhanced features, PancakeSwap is poised to set a new standard in the DeFi space and has the potential to shape the future of on-chain trading.
