The Ronin network announced a v3 upgrade for its decentralized exchange (DEX), Katana, aimed at enhancing trading efficiency and capital use.
Ronin said the DEX will begin supporting concentrated liquidity pools in November if things go according to plan. The new update should bring more trading depth and less slippage, enhancing the efficiency of traders and liquidity providers (LPs) using the DEX.
Source: Jeff Zirlin
The update will bring new features, including customizable fees and concentrated liquidity. These features will enable LPs to set more precise profit margins and risk levels. Ronin added that this would also support its treasury.
According to Ronin, the update will improve the DEX’s capital efficiency and liquidity. It will reduce the need for high Ronin (RON) emissions in its liquidity program.
Ronin to cut Katana DEX liquidity rewards by 50%
On Feb. 15, Ronin said it would cut its Katana Liquidity Mining Program’s rewards by 75%. It would be cut in half twice through two phases, with phase one already implemented in March.
Ronin said it would further halve its rewards emission rate. According to the network, this would introduce more capital efficiency in providing liquidity. In addition, Ronin also noted that this gives room for deeper liquidity on the network.
Ronin said with its token’s volume and liquidity growing, the need for “aggressive” rewards diminishes. The blockchain network added that the second phase will be implemented on Nov. 26, with rewards being cut in half again.
According to the network, phase two of the reward adjustment will save about 2.7 million RON tokens per quarter. The network said this would reduce RON’s inflation without impacting the liquidity. The platform noted that its adjustment in the first phase achieved this result.
Related: Ronin to secure cross-chain bridge with Chainlink CCIP
Ronin secures crosschain bridge with Chainlink
The move follows Ronin’s ongoing efforts to improve its ecosystem. On Oct. 10, the blockchain reinforced its bridge’s security by integrating Chainlink’s Cross-Chain Interoperability Protocol (CCIP), an inter-chain messaging protocol.
Ronin said the integration would improve user experience and free up resources to accelerate the adoption of Ronin.
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