PancakeSwap announces version 4 with custom pools and gas optimization – TradingView News

Decentralized exchange PancakeSwap released its fourth version codebase and whitepaper on March 15, according to an announcement from its team. The new version enables custom liquidity pools and flash accounting to reduce gas costs for users and prevent temporary losses for liquidity providers (LPs). The team will also establish a development fund to finance further development of the PancakeSwap protocol, the announcement said.Cointelegraph

PancakeSwap is the third largest decentralized crypto exchange by the total value of cryptocurrencies held in its contracts. According to blockchain analytics platform DefiLlama, the company currently has over $2.3 billion worth of assets spread across nine different networks.

According to the announcement, the new version will be launched on the Ethereum and BNB networks in the third quarter of 2024.

The team explained that v4 integrates “hooks,” which are “customizable add-ons” that can be created by independent developers to add additional functionality for specific liquidity pools. For example, pools may offer “dynamic fees.” […] custom oracles [and] Active liquidity management modules.”

According to the announcement, it also supports liquidity book pools. Unlike traditional mining pools, the formula is within a ton.

The developers also made changes to minimize gas costs, including moving to a “singleton” model, which combines all pools into a single contract. They claim that this will reduce the cost of “multi-hop” trades that require more than one swap to complete. Additionally, the v4 protocol implements “flash accounting” that “streamlines the settlement process by calculating and collectively settling net balances for a series of transactions,” which is said to further reduce gas costs.

The new code will be released under an open source license, the team said. Developers who want to fork the code can apply to become “partners” and receive official recognition from the team. Additionally, PancakeSwap is launching a $500,000 developer program to fund independent developers to create hooks for v4.

As the crypto user base grows, decentralized exchanges are trying to implement new features to gain market share. On February 27, Uniswap announced that it would be releasing a web extension wallet with an integrated exchange. In November 2023, the exchange announced a “Gauges” voting feature that enables PancakeSwaps CAKEUSD Token holders can vote on which surveys receive additional rewards.

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