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Will CAKE Token Skyrocket 300%
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PancakeSwap has announced its much-anticipated version 4. This new iteration, PancakeSwap v4, marks a significant advancement, promising enhanced flexibility, functionality, and efficiency.
It aims to rectify the limitations of version 3 and redefine the standards for decentralized exchanges (DEXs).
What Are the New Features of PancakeSwap V4?
According to an announcement shared with BeInCrypto, PancakeSwap v4 is set for a third-quarter release on Ethereum and BNB Chain. It aims to offer a transformative trading experience.
With open-source licensing, the DEX plans to foster collaboration and community contribution within the DeFi ecosystem, signaling a leap forward in blockchain technology.
“We aim to foster the most comprehensive flexibility and functionality within the Automated Market Maker (AMM) space, built together by the Kitchen (PancakeSwap team) and DeFi developers in the crypto community. Hence, the PancakeSwap v4 code will be released under an open-source license,” Chef Mochi, Head of PancakeSwap, said.”
Notably, PancakeSwap v4 introduces hooks. These are external contracts that augment liquidity pool functionalities. Hooks facilitate dynamic fee adjustments, the integration of custom oracles, and more, thereby granting developers unprecedented customization and control.
Read more: How To Use PancakeSwap: A Step-By-Step Guide
Additionally, the platform supports various pool types, including Concentrated Liquidity Automated Market Maker (CLAMM) and Liquidity Book. Moreover, PancakeSwap v4 introduces Flash Accounting. This feature consolidates all pools into a single contract, slashing deployment costs by 99%.
It also reduces gas expenses for multi-hop swaps, enhancing the platform’s efficiency and user appeal.
In contrast, another DEX leader – Uniswap, integrated similar features earlier this year. This move indicates a broader industry trend towards more flexible and efficient DeFi platforms.
However, PancakeSwap’s approach in version 3, which involved forking Uniswap’s code, sparked controversy last year. It highlighted the industry’s struggle with innovation.
“We keep up with the latest advancements in the AMM space, alongside a number of our own unique enhancements, to ensure users have access to the best DEX available,” Chef Mochi explained BeInCrypto.
Amid these strategic developments, the native token of PancakeSwap, CAKE, shows signs of an impending surge. Technical analysis points to a bullish cup and handle pattern on the weekly charts, suggesting a potential 300% increase to approximately $17.
However, this optimistic forecast faces challenges, with resistance anticipated near $9.4-$10.
Read more: How To Evaluate DEXs With On-Chain Analytics
If the upward trend falters, CAKE could retreat to a strong support level of $3.4. Thus, the market stands at a crossroads, with CAKE’s future hinging on the success of PancakeSwap v4 and the broader market dynamics.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
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