The Ronin network is preparing to roll out a major update for its decentralized exchange, Katana
This upgrade is set to bring improvements to how users trade and provide liquidity on the platform.
With a tentative launch planned for November, Katana's v3 upgrade will introduce concentrated liquidity pools, a feature expected to boost trading depth while minimizing slippage. This development will allow traders and liquidity providers (LPs) to operate with improved precision and reduced costs.
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One of the additions in the upgrade is the introduction of customizable fees and concentrated liquidity. By allowing LPs to tailor their fee structures and control the concentration of their liquidity, Ronin aims to provide greater control over profit margins and risk exposure.
This update will address the need for more effective capital allocation within Katana. Ronin aims to reduce its dependence on high levels of RON
Additionally, Ronin announced earlier this year its intention to scale back the rewards in its Katana Liquidity Mining Program. This reduction in rewards, according to Ronin, is part of a broader strategy to foster capital efficiency on the platform. With Katana seeing increased trading volume and liquidity, the network finds it no longer necessary to rely on incentives to attract LPs.
By adjusting the reward structure, Ronin expects to maintain a stable and efficient liquidity pool while preserving the value of its native RON token.
The network estimates that the second phase of this reward reduction will save around 2.7 million RON tokens per quarter. The success of the first phase demonstrated the potential for lowering emissions while still supporting trading activity.
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