The decentralized cryptocurrency exchange PancakeSwap has announced the imminent launch of its fourth version of the protocol, which will be available on the Ethereum and BNB Chain networks in the third quarter. This update promises to bring a number of significant improvements aimed at optimizing the trading process, making it more accessible and efficient for users.

The main innovations concern the improvement of the automated market maker (AMM), which will reduce trading costs and improve their efficiency. Developers plan to release the PancakeSwap v4 code under an open license, which will address several existing shortcomings of AMM, such as limited flexibility in pricing models and high gas fees.

In addition, the new version will feature "hooks", which will provide additional settings for trading at the smart contract level, as well as improved liquidity pools for more advantageous and accurate prices on popular assets. This should help avoid sharp price fluctuations during periods of increased trading volume.

The introduction of the Singleton solution, which will consolidate all liquidity pools into one contract, will significantly reduce the cost of deployment and swap fees. The flash accounting feature, which allows transactions to be grouped, will further reduce gas costs.

At the time of publication, the volume of assets locked on PancakeSwap amounts to $2.35 billion, and the exchange's native token CAKE is trading at $4.72, which is 14% higher compared to the previous day. Its market capitalization has reached $1.15 billion.

Recall that in December 2023, the PancakeSwap community supported a proposal to reduce the emission of the CAKE token from 750 million to 450 million, and developers have already burned 10 million CAKE worth $34 million. In November, the exchange also launched a gaming marketplace with support for NFT and CAKE token.