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PancakeSwap has announced its v4 update after reaching $836 billion in trading volume in its four years of operation. This update aims to address the shortcomings of the current automated market maker (AMM) model by increasing liquidity provision, interoperability, and scalability.
The platform stated that it has a total locked value (TVL) of $1.72 billion by serving 43 million unique wallet addresses. However, it was noted that TVL has been decreasing since the peak of $7.16 billion in May 2021 and has continued to decline to date, with TVL reaching $2.42 billion in March 2024.
PancakeSwap v4 Update and Innovations
PancakeSwap v4 aims to provide users with a better trading experience by offering advanced trading tools, flexible pricing models, and lower gas fees. The update aims to increase capital efficiency for liquidity providers and close the trading feature gap between decentralized exchanges (DEX) and centralized exchanges (CEX).
Chef Kids, one of the leaders of PancakeSwap, told Cointelegraph that with v4, they aim to address the flexibility issues of automated market makers (AMMs), limited trading features, and issues such as impermanent loss for liquidity providers. He also added that they plan to offer lower gas fees to reduce users’ transaction costs with the update.
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Kids stated that PancakeSwap v4 will help increase trading volume and platform revenues by providing more participation and deep market conditions for liquidity providers.
With this major update, PancakeSwap aims to further increase user experience and trading volume in the decentralized finance (DeFi) space.
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