PancakeSwap announces v4 with custom pools and gas optimization
Decentralized exchange PancakeSwap released its version four codebase and whitepaper on March 15, according to an announcement from the team. The new version allows for customized liquid pools and flash accounts designed to reduce gas costs for consumers and prevent constant losses for liquid suppliers (LPs). The team will create a development fund to help pay for further development of the Pancake Swap protocol, according to the announcement.
PancakeSwap is the third-largest decentralized crypto exchange, measured in terms of total cryptocurrency value. Currently, more than $2.3 billion in assets are spread across nine different networks, according to blockchain analytics platform Defillama.
According to the announcement, the new version will be launched on the Ethereum and BNB networks in the third quarter of 2024.
The team said that v4 will integrate “hooks”, which are “customizable add-ons” that can be created by independent developers to add additional features to certain liquid pools. For example, it allows pools to offer “variable payments […] Custom oracles [and] Active Fluid Management Modules.
Related: Uniswap releases new version of code with ‘hooks' or custom pools
As advertised, it supports liquid book pools. Unlike traditional pools that follow the X*Y = K formula, liquid book pools use the formula X + Y = K. Pancake Swap says this new pool of liquidity will allow providers to avoid constant losses and allow traders to avoid any price impact when trading. In the trash.
The developers have made changes to reduce gas costs, including moving to a “single” model where all pools are combined into one contract. They say this reduces the cost of “multi-hop” transactions that require more than one exchange to complete. In addition, the v4 protocol implements “flash accounting”, which “facilitates the accounting process by calculating and jointly adjusting net accounts for net transactions”, which further reduces gas costs.
The new code is being released under an open source license, the team said. Developers who want to fork the code can apply to become “collaborators” and receive official recognition from the team. Additionally, PancakeSwap is launching a $500,000 developer program to help freelance developers create hooks for v4.
As the crypto user base grows, decentralized exchanges race to implement new features to capture market share. In the year
