PancakeSwap, one of the leading decentralized exchanges with a user base of over 1.5 million, has launched its Version 3 on the Ethereum and BNB Chain networks.

The upgraded platform will offer the lowest fees for on-chain trades compared to competitors like SushiSwap and Uniswap and enhanced returns for liquidity providers.

With V3, liquidity providers can concentrate their capital on smaller price ranges, resulting in higher fee earnings from the same amount of deposits.

The platform also introduces four different trading fee tiers, ranging from 0.01% to 1%. Each token pair can have a liquidity pool for each fee tier, with asset pairs gravitating towards the most rewarding tier for both traders and liquidity providers.

In the future, PancakeSwap V3 plans to introduce a VIP trading rewards program, where traders can earn exclusive benefits based on their trading volume, including up to a 5% trading fee rebate.

The platform will also introduce a position manager feature to allow traders to deposit liquidity and optimize their positions based on fees and rewards over time, eliminating the need for manual calculations.