PancakeSwap launches v3 upgrade as its latest move into multichain DeFi

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Following the launch of PancakeSwap’s new upgrade known as PancakeSwap V3 in early April, the popular DEX has recently revealed its roadmap. One of the goals for the future is to bring a number of new features that would allow the DEX to take control of the inflation of its native token, CAKE.

PancakeSwap V3 launches

PancakeSwap emerged as BNB Smart Chain’s response to the Ethereum-based Uniswap decentralized exchange. The project replicated most of Uniswap’s code, which has since become something of a tradition. So, after Uniswap’s V3 upgrade, PancakeSwap’s own new upgrade was not far behind.

However, while the DEX may have started as the clone of Uniswap, it has started pursuing a different path, which is slowly leading it toward achieving a multichain strategy. This comes due to the exchange’s plans to grow its presence across the DeFi ecosystem, which included an expansion to Ethereum and Aptos.

Last week, PancakeSwap’s product manager held an AMA, during which they explained that the V3 upgrade was central to PancakeSwap’s multichain ambition. The DEX seeks to expand beyond its roots, according to the product lead, who said that “We are looking to further expand to some other strong and promising blockchains to capture […] many great opportunities.”

Head Chef Mochi stated during the AMA session that the exchange is the largest DEX on Aptos and BNB Chain at this point. More than that, the platform had broken into the top 10 DEXes by volume on Ethereum within only 10 days since the PancakeSwap V3 expansion.

BNB seeks to expand and reduce CAKE inflation

Most of the current product development within the exchange is aimed toward ensuring that the DEX can offer the same functionality on the other networks as it does on BNB chain. That included expanding CAKE in order to take advantage of the multichain growth. More specifically, the DEX’s developers said they are looking into how the new upgrade can bring locked CAKE utility to different blockchains as PancakeSwap continues expanding beyond BNB Chain’s borders.

Apart from rehashing some of the tried and tested features for Ethereum and Aptos users, the exchange has tried to bring new possibilities planned for PancakeSwap v3, such as a new took that would allow users to automate liquidity positions. This so-called position manager will also allow other protocols to offer their strategies to liquidity providers. As a result, users will be able to access many different strategies for automating their positions moving forward.

However, that is not all, as PancakeSwap’s users also worry about the inflation of the exchange’s native cryptocurrency, CAKE. The developers have been aware of the issue for a while now, and their idea was to try and change the DEX’s yield farming mechanism. The goal was to have it create less CAKE moving forward, and thus tackle inflation.

So, from now on, the amount of CAKE created will be reduced, and the BNB Chain will see a 45% yield reduction. In addition to that, there will be a 32% reduction on Ethereum. Plus, the DEX hopes that it will see increased trading volumes thanks to its expansion to other blockchains.

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Source: https://insidebitcoins.com/news/pancakeswap-launches-v3-upgrade-as-its-latest-move-into-multichain-defi