Designed to improve liquidity efficiency and capital use, Ronin’s Katana distributed exchange (DEX) is getting ready for a significant update with the release of its v3 version. Designed to launch in November, the upgrade brings tailored trading fees and concentrated liquidity pools. Liquidity providers (LPs) should benefit from increased trading depth, reduced slippage, and improved control over their risk and profit margins as a result of these developments.
Still, one of the main changes accompanying this update is the decrease in liquidity incentives. Beginning with the v3 upgrade, Katana will reduce its liquidity mining incentives by 50%, following previous declines earlier this year. This action fits Ronin’s approach of increasing capital efficiency, lowering the demand for high RON emissions, and hence lowering the inflationary pressure on its token. The platform’s management thinks that without compromising the user experience, the drop in rewards would result in more sustainable liquidity on the exchange.
Ronin’s larger endeavor to ensure long-term sustainability guarantees the rewards adjustment, thereby enhancing the overall environment. With the new adjustments, the network aims to save approximately 2.7 million RON tokens every quarter, contributing to the reduction of token inflation and ensuring more affordable liquidity.
In addition to the incentive modification, the v3 version features enhancements that support the network’s expansion. These enhancements include concentrated liquidity pools, which enable users to allocate capital more effectively, and new features such as adjustable fees, which enhance the platform’s adaptability.
Ronin wants to establish Katana as a potent and sustainable DEX capable of supporting a vibrant environment for traders and liquidity providers through this update.
