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Ronin Network cuts rewards on Katana DEX as part of new V3 upgrade

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Ronin Network reduces rewards on Katana DEX, introducing significant changes as part of the new v3 upgrade to enhance user experience.

The Ronin Network is rolling out a major upgrade to its decentralized exchange (DEX), Katana, that aims to improve performance and sustainability. The Katana v3 update will bring several new features to the platform while reducing the rewards given to liquidity providers (LPs) by up to 75%.

According to Sky Mavis, the company behind Ronin, the rewards cut comes after a review showed that current reward levels—sometimes as high as 70% APR (annual percentage rate)—did not lead to the intended increase in liquidity. 

With rewards too high, the network faced excess inflation of its RON token without getting enough benefits in return. Starting in early 2024, Sky Mavis plans to reduce the rewards by half, with further cuts later on.

By reducing these rewards, Ronin hopes to control the supply of RON more effectively and save costs. This step is also expected to support a stable, long-term value for the token. The company estimates the reduced rewards could save approximately $5.7 million in the first quarter alone.

In addition to reducing rewards, the Katana v3 update will also include technical improvements. These include better liquidity, which can help prevent large price swings, and new options for users to customize trading fees. 

These upgrades are expected to create a smoother experience for users on the platform, while still providing adequate rewards to keep them engaged.

Sky Mavis is confident that the v3 upgrade will not only strengthen the Katana DEX but also position Ronin for steady growth in the future. The company views these changes as necessary for creating a healthy ecosystem around its blockchain and game-focused projects.

When Katana DEX first launched on the Ronin Network, the trading options were very limited, offering only a few core tokens: AXS (Axie Infinity Shards), SLP (Smooth Love Potion), USDC (a stablecoin), and WETH (Wrapped Ether). 

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These tokens were chosen because they represented the main assets in the Axie Infinity ecosystem, and they were essential for players to trade, earn, and participate in the game’s economy.

As the Ronin Network grew, so did Katana’s available token list. Today, users can also trade RON (the Ronin network’s native token), WBTC (Wrapped Bitcoin), PIXEL (a token from other blockchain games integrated into Ronin), and PHPC (a community-driven token). The addition of these assets has diversified the DEX, giving users access to broader trading opportunities.

Per the announcement, If all goes according to plan, the decentralized exchange will start supporting concentrated liquidity pools at the end of November, pending a complete audit report.

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