Despite Uniswap's early deployment on BNB Chain, PancakeSwap V3 has surpassed Uniswap's BNB Chain version in Total Value Locked (TVL) shortly after its release. However, PancakeSwap's overall TVL saw a slight decline post-V3 launch, likely due to pending feature rollouts.
PancakeSwap V3: A Fork of Uniswap V3
Uniswap V3 introduced a "Business Source License" (BSL) to prevent malicious code copying, which expired on April 1st. PancakeSwap leveraged this opportunity to upgrade using Uniswap's open-source code. Key features include:
Feature 1: Customizable Liquidity Ranges
Like Uniswap V3, liquidity providers (LPs) can define price ranges for their positions, improving capital efficiency and enabling trades with narrower spreads.
Feature 2: Up to 25x Lower Fees
- Four-tier fee structure (vs. Uniswap’s model)
- Base fee reduced from 0.3% to 0.25%
- Minimum fee as low as 0.01% (25x reduction from PancakeSwap’s original fixed rate)
Note: Fee adjustments may impact treasury revenue and CAKE token burn rates.
Feature 3: Hybrid AMM + Market Maker Integration
- Smart router for optimal trade routes
- Combined liquidity from automated market makers (AMM) and professional market makers (MM)
- Customizable routing options (exclude V2/V3/MM pools)
- Real-time slippage comparison between AMM and MM
👉 Discover how hybrid liquidity improves trading efficiency
Feature 4: Limit Orders for AMM (Coming Soon)
Pending official release.
Feature 5: Automated Liquidity Management
- Auto-adjusts LP positions based on price movements
- Eliminates manual rebalancing needs
- Optimized for BNB Chain’s low gas fees
- Calculates projected APR based on liquidity and historical volume
Feature 6: veToken-Inspired Tokenomics
Upcoming "VIP Trading Rewards Program":
- Lock CAKE tokens + mint Pancake Profile NFT
- Up to 5% trading fee rebates
TVL Comparison: PancakeSwap vs. Uniswap
| Metric | PancakeSwap V3 (BNB Chain) | Uniswap (BNB Chain) | Overall TVL |
|---|---|---|---|
| TVL | $69.35M | $8.46M | $24.4B vs. $39.3B |
Data source: DeFiLlama
FAQs
Q: Why did PancakeSwap’s overall TVL drop after V3 launch?
A: Partial feature rollout may have temporarily shifted liquidity. Full implementation is expected to stabilize metrics.
Q: How does customizable liquidity benefit LPs?
A: Concentrated positions yield higher fee earnings per unit of capital when prices stay within defined ranges.
Q: When will limit orders be available?
A: The team has announced this feature for future release but hasn’t specified a timeline.