Decentralized exchange PancakeSwap has unveiled details of its highly anticipated v4 codebase. The new version of the DEX introduces custom liquidity pools and flash accounting features to reduce gas costs for users and prevent volatile losses for liquidity providers.

Custom liquidity pools are a key feature of PancakeSwap v4, designed to stabilize prices during large token transactions. The team behind PancakeSwap aims to provide users with the most flexibility and functionality within the AMM space, with input from Kitchen and DeFi developers in the crypto community.

In addition to custom liquidity pools, PancakeSwap v4 will introduce the Singleton solution, consolidating all pools into one contract to reduce deployment costs by 99%. This initiative will also lower gas consumption by offering collective settlement for transactions.

PancakeSwap v4 is expected to go live on the Ethereum and BNB Chain networks in the third quarter of 2024. The recent v4 announcement saw a 5% decrease in the CAKE token price, dropping to $4.29, with a 5% reduction in market capitalization to $1.1 billion and a 10% decline in trading volumes to $287 million.

In December 2023, the PancakeSwap community approved a proposal to decrease the issuance of CAKE from 750 million to 450 million, transitioning to a deflationary model. This adjustment is expected to strengthen the position of the coin in the market. Updated data on the maximum circulating supply of CAKE has been reflected on major digital asset tracking platforms since January.

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