PancakeSwap, a decentralized exchange platform, has announced that V3 is now live on BNB Chain and Ethereum, offering significant improvements over V2. PancakeSwap V3 introduces greater efficiency and flexibility in fee structures, with trading fees reduced by 25 times and a 4,000-fold increase in capital efficiency, allowing users to earn higher profits more easily.

Liquidity providers benefit from V3's flexible trading fees, with options of 0.01%, 0.05%, 0.25%, and 1%, replacing the fixed 0.25% fee in V2. The trading fees are distributed among liquidity providers, the PancakeSwap treasury, and CAKE token burns, ensuring a balanced allocation.

For instance, with the new fee structure, a trade that previously cost 0.25% now costs 0.01%, allowing for a higher return. PancakeSwap remains dominant on the BNB Network, recently recording a total value lock of $2.5 billion, and aims to strengthen its position on both BNB Chain and Ethereum.

This upgrade follows the expiration of Uniswap's V3 Business Source License. PancakeSwap is also planning to introduce new features such as the Position Manager Tool and VIP Trading Reward Points. The Position Manager will simplify liquidity deposits and enable automated strategies, while the VIP program will offer exclusive perks to loyal users. Although no specific timeline is given, these features are expected to be implemented soon.