PancakeSwap Infinity Launches With Advanced Features, 99% Gas Savings

PancakeSwap Infinity, the latest iteration of the popular decentralized finance (DeFi) platform PancakeSwap, has launched, introducing a suite of advanced features designed to enhance capital efficiency, reduce costs, and foster innovation. The rebrand to "Infinity" signifies the protocol's commitment to endless possibilities and community-driven development. The platform is initially available on the BNB Chain, with plans to expand to multiple chains in the near future, offering a true multichain liquidity experience.

One of the standout features of PancakeSwap Infinity is the introduction of diverse pool types, allowing liquidity providers to tailor their strategies to different market conditions. The Concentrated Liquidity AMM (CLAMM) model enables liquidity providers to pool liquidity within a specific price range, maximizing capital efficiency and reducing price impact. This is particularly beneficial for high-volatility pairs, where liquidity can be concentrated around the current market price to optimize fee income with less capital deployed. Benefits of CLAMM include greater capital efficiency for smaller ranges, lower gas fees, and flexible strategies suitable for both volatile and stable pairs.

For those seeking a more hands-off approach, PancakeSwap Infinity also supports the Liquidity Book AMM (LBAMM) model. Similar to Traders Joe’s model, LBAMM divides liquidity into price bins, ensuring that executions within the same price bin do not experience any slippage. This model is ideal for low-volatility assets, such as stablecoins, and offers fungible liquidity tokens to facilitate easy rebalancing and reduced complexity for passive liquidity providers.

PancakeSwap Infinity has also moved away from the traditional fixed fee model, offering either dynamic or static fee structures. Static fees provide certainty by locking in the transaction fee at a fixed value, while dynamic fees adjust automatically based on market volatility, trading activity, or custom incentives. This flexibility allows liquidity providers to maximize their earnings based on their personal strategy and market conditions.

Another groundbreaking feature introduced by PancakeSwap Infinity is Hooks, a customization tool that allows external developers and projects to deploy add-ons, enhancing pool functionality. Hooks can be used to provide tiered trading fee discounts, incentivize liquidity providers during high volatility periods, and implement auto-liquidity strategies for more efficient yield optimization. For example, a VIP Discount Hook will soon be available, enabling heavy traders to benefit from lower fees, putting PancakeSwap Infinity in direct competition with centralized exchanges. With programmable logic at every trade and pool, Hooks unlock infinite customization in DeFi.

PancakeSwap Infinity has also made significant improvements in gas savings. The Singleton Contract architecture consolidates liquidity pools under one smart contract, reducing deployment costs by up to 99%. Flash Accounting optimizes transactions by batching actions, lowering overall gas fees per swap. Trading native ETH or BNB uses 50% less gas than ERC-20 tokens, further reducing fees for day traders. Additionally, the ERC-6909 standard minimizes double token transfers, providing more savings. The Donate() feature rewards liquidity providers with low gas fees, promoting a healthier and more sustainable liquidity ecosystem.

PancakeSwap Infinity is completely open-source, allowing developers to tweak, innovate, and partner without limitation. By embracing open values, PancakeSwap aims to build a stronger DeFi community and accelerate technology breakthroughs. This community-driven project has made its mark in a market dominated by proprietary platforms, inspiring a more open and collaborative DeFi future.