Main Takeaways:
● PancakeSwap Infinity, formerly known as v4, supports multiple pool types, including CLAMM and LBAMM pools, enabling unprecedented flexibility for different liquidity strategies that sets PancakeSwap apart from other DEXs. ● With customizable smart contracts, or Hooks, multiple pool types, custom fee structures, and gas-saving optimizations, PancakeSwap Infinity offers users overall much greater flexibility and cost efficiency. ● By launching with open-source licensing and multichain expansion plans, PancakeSwap Infinity reinforces its commitment to innovation, accessibility, and the future growth of DeFi.
April 28th,10:00am UTC – PancakeSwap, a leading decentralized exchange (DEX), has officially launched its latest and most advanced upgrade: PancakeSwap Infinity (formerly known as v4). This transformation marks a significant leap in DeFi, offering unparalleled customization and cost efficiency for traders and liquidity providers, while presenting opportunities for developers to build and innovate.
PancakeSwap Infinity Rebranded from PancakeSwap v4
The rebranding to PancakeSwap Infinity underscores the platform’s commitment to boundless innovation. With enhanced flexibility, improved liquidity solutions, and reduced transaction costs, PancakeSwap Infinity is designed to empower users with the tools they need to maximize their DeFi experience. “Infinity” symbolizes boundless potential, where innovation knows no limits on a platform that evolves with the needs of traders, liquidity providers, and developers, offering them the tools to stay ahead of the curve.
“The rebrand to Infinity reflects our vision for an open-ended future in DeFi. “Infinity” isn’t just a name, it represents the endless possibilities we see ahead. We want to create a platform that keeps evolving, grows with users’ needs, and always stays ahead of the curve.” – Chef Kids, Head of PancakeSwap
Key Features of PancakeSwap Infinity:
● Multichain Expansion: Starting with BNB Chain, with more chains coming soon. ● Multiple Pool Types: Supports LBAMM and CLAMM pools, offering flexibility for different liquidity strategies.
● Custom Fee Structures: Choose your fee tier pool, which can be static for predictability or dynamic to adjust based on market conditions.
● Hooks for Customization: Benefit from dynamic fees, exclusive discounts, better trading rates, and optimized liquidity returns.
● Gas Optimization: Save up to 99% on pool creation fees and reduce gas costs for native ETH/BNB swaps by 50%.
● Open Source Licensing: The code for PancakeSwap Infinity will be released under an open-source license, allowing developers to create, customize, and collaborate.
Revolutionizing Liquidity Provisioning with Multiple Pool Types
PancakeSwap Infinity supports multiple pool types, a feature that enables flexibility like no other DEX. Infinity will support LBAMM (Liquidity Book AMM) and CLAMM (Concentrated Liquidity AMM) at launch and more pool types in the future.
CLAMM allows liquidity to be concentrated within a specific price range, enhancing capital efficiency and deepening the pool’s liquidity. It’s ideal for high- and low-volatility pairs, offering a broad range of strategies.
LBAMM, on the other hand, provides a simplified solution that’s suitable for low-volatility pairs, with support for various liquidity shapes. Trades within a price bin on LBAMM happen without any price impact, ensuring smooth and efficient transactions.
Custom Fee Structures
PancakeSwap Infinity gives liquidity providers complete control of their fee pool structure. Unlike previous versions with fixed fee tiers, users can choose between dynamic or static fee pools based on their strategy.
Static fees are set at the time of pool creation, and the fee remains constant to provide consistency and predictability for both LPs and traders. Dynamic fees are determined using a hook, and the fee can be adjusted based on various factors including market volatility, liquidity conditions, and trader-specific incentives.
Empowering Users with Hooks for Customization
PancakeSwap Infinity introduces Hooks, externally deployed contracts that act as add-ons. These allow projects and developers to deploy and apply custom features that enhance their strategies. Developers, for example, can add hooks for trading fee discounts, set up dynamic rewards, and more. The possibilities with hooks are endless.
For traders, PancakeSwap’s Smart Router automatically selects the most favorable pool for the trade, including from standard pools (v2, v3) or a Hook-enabled pool (Infinity). If traders have a preferred hook, they can manually choose a pool with the specific hook for a more customized trading experience. For liquidity providers, hooks offer a new way to optimize strategy, including maximizing returns, minimizing risks, or automating management. Liquidity providers can choose pools based on the hooks that best match their goals and experience greater flexibility, returns, and reduced risks. As part of the PancakeSwap Infinity launch, the platform has partnered with several protocols to introduce some innovative hooks across the PancakeSwap Infinity pools.
Significant Gas Optimization with Infinity Infrastructure
The PancakeSwap Infinity upgrade optimizes smart contract infrastructure to significantly lower gas costs. By consolidating all liquidity pools into a single contract (the Singleton Contract), pool creation costs have been reduced by up to 99%. With Flash Accounting, which processes multiple transactions at once, the cost for each swap is reduced. ERC-6909 accounting saves even more on frequent transactions, and native token swaps for ETH and BNB also see a 50% decrease in gas fees, making DeFi transactions more efficient and cost-effective for users.
Open-Source and Community-Driven
As part of PancakeSwap’s mission to drive innovation in DeFi, PancakeSwap Infinity’s codebase will be released under an open-source license, fostering collaboration and innovation, allowing for the continuous evolution of the DeFi ecosystem.
A New Era of DeFi Begins
With cutting-edge tools for enhanced user flexibility, strategy optimization, and gas optimization, Infinity positions PancakeSwap as a leader in the evolving DeFi landscape. Whether for traders, liquidity providers, or developers, PancakeSwap Infinity offers the flexibility and scalability to help users achieve their goals and unlock infinite possibilities for DeFi.
“PancakeSwap Infinity is just the beginning. DeFi is still in its early stages, and we’re excited to be part of shaping its future. With Infinity, we’re building a platform that can grow and evolve alongside the DeFi space. By making the platform open-source, we’re encouraging innovation and fast-tracking the growth of the DeFi space. The more people contribute, the faster we can push the boundaries of what’s possible.” – Chef Kids, Head of PancakeSwap
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