Popular decentralized crypto exchange (DEX) PancakeSwap has announced V4, the long-awaited fourth version. Let’s figure out what to expect from CAKE. Moreover, the new version will eliminate all the shortcomings of the previous one and provide increased flexibility, functionality, and efficiency. The rollout of V4 on PancakeSwap is expected to set new standards for all other DEXs.
PancakeSwap and V4 Update
The new version is promised to be deployed in the third quarter on Ethereum and BNB Chain. Its goal is to offer a completely new and improved trading experience. However, PancakeSwap plans to expand further collaboration and encourage community contributions to the DeFi ecosystem to help develop blockchain technology.
🥞 PancakeSwap Fam!
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To do this, the exchange relies on transparent licensing. “We want to provide maximum flexibility and functionality in the automated market maker (AMM) space, created jointly by the ‘kitchen’ (the PancakeSwap team) and DeFi developers in the crypto community. Therefore, the PancakeSwap v4 code will be released under an open-source license,” said the head of PancakeSwap Chef Moti.
New Features
The fourth version will bring with it the so-called “hooks” (eng. hooks). These are external smart contracts that expand the functionality of liquidity pools. For example, hooks dynamically allow you to adjust the commission in the pool, integrate custom oracles, create new order types, and much more. The new product puts completely new customization and control options into the hands of developers. In addition, users will also have access to the instant accounting function (Flash Accounting).
Its peculiarity is that it combines all pools into one contract. This reduces deployment costs by an impressive 99%, as well as reducing gas costs for swaps. Finally, the deployment of the fourth version of the protocol will allow the platform to support various types of pools, including AMM with concentrated liquidity (English: Concentrated Liquidity Automated Market Maker (CLAMM)).
PancakeSwap: Embracing Innovation for Superior DeFi Platforms
It is noteworthy that just a month ago, another leader in the DEX segment, the crypto exchange Uniswap, announced an imminent update and the introduction of similar functions. This highlights that there appears to be a similar trend among decentralized exchanges right now – the trend towards creating the most flexible and efficient DeFi platforms. “We are keeping up with the latest advancements in AMM, as well as introducing some of our own unique improvements to ensure users have access to the best DEX,”.
How CAKE Reacts?
On the news, PancakeSwap’s native token is showing signs of an impending rise. Technical analysis points to a bullish cup and handle pattern on the weekly charts, suggesting a potential upside of 300% to around $17.
At the writing time, CAKE’s price is at $4.38. However, this optimistic forecast faces challenges as resistance is expected in the $9.4-$10 area. If the uptrend weakens, the token could retreat to the strong $3.4 support level. However, the immediate future of the token depends on how successful the new version of PancakeSwap V4 turns out to be, as well as broader market dynamics.
