PancakeSwap, a decentralized exchange (DEX), plans to launch version 4 of its protocol on Ethereum and Binance Smart Chain in the third quarter.
According to developers, the update will bring several improvements to the platform. The team behind PancakeSwap aims to enhance the automated market maker (AMM) functionality, making trading more cost-effective and efficient for users.
The updated code will be released under an open-source license and address the limitations of current AMMs, including inflexible asset pricing models, lack of centralized exchange execution functions, and high gas fees.
One of the key features of PancakeSwap v4 will be the introduction of “hooks”, allowing users to set additional settings for trading at the smart contract level.
This will provide more flexibility for users and help prevent sharp price fluctuations during high trading volumes.
Furthermore, the update will also include improved liquidity pools, offering more accurate and favorable prices for popular assets.
