PancakeSwap
Launch App
English
English
  • Welcome to PancakeSwap
    • Product Overview
    • ✨How-to Guides
      • Get Started (BSC)
        • Create a Wallet
        • Get BEP20 Tokens
        • Using PancakeSwap without Centralized Exchanges
        • Connect Your Wallet to PancakeSwap
      • Get Started (Aptos)
        • Create a Wallet
        • Get Aptos Coins
        • CAKE Bridging Guide
        • Connect Your Wallet to PancakeSwap
        • Aptos FAQ
      • V3/V2 Migration
        • How to migrate
        • How v3 APR is calculated
        • FAQ
        • V2 Migration
          • Migrate Your Stakings
          • MasterChef v2
            • List of Farms
          • CAKE Syrup Pool
    • 🗺️Roadmap
    • veCAKE Sunset
      • Staked Cake Redemption
      • 🔷[Archive] veCAKE
        • What is veCAKE?
        • How to get veCAKE?
        • Migrate from CAKE Pool
        • veCAKE Managers
        • Bridge your veCAKE
        • Earn CAKE Weekly
          • FAQ
    • 📈Analytics (Info Page)
    • ✅Audits
    • 🤙Contact Us
      • Social Accounts
      • Telegram & Discord Communities
      • 💼Business Partnerships
        • ⛽veCAKE / Gauges
        • 🧑‍🌾Initial Farm Offerings - IFOs
        • 🥞Syrup Pools and Farms
        • 🖼️NFT Marketplace
        • ❓Commonly Asked Business Partnerships Questions
      • Ambassador Program
        • What can you do as an Ambassador?
        • Benefits of a PancakeSwap Ambassador
        • Want to be an Ambassador?
        • ❓ FAQs Page
      • General FAQ
        • I need help
        • Troubleshooting Errors
        • What is an Approval Transaction?
        • Fixing Stuck Pending Transactions on MetaMask
    • 👨‍👨‍👦About Us
      • Team
        • The Kitchen Team
        • Become a Chef
          • Brand / Graphics Designer
          • Motion / Interaction Designer
          • Social Media & Content Manager
          • Developer Relations Manager
          • Product Designer (UX/I)
          • Business Development Manager
          • Senior Backend Engineer
      • Brand & Logos
  • 👴Archive
    • 📂Legacy Products
      • 🖼️[Archived] NFT Marketplace
      • 🎮[Archived] Gaming Platform
        • 📒Brand Kit
        • 🎓Pancake Mayor
        • 🛡️Pancake Protectors
          • FAQ
      • 🍯[Archived] Pottery
        • How to Play Pottery
        • Pottery FAQ
      • 🧈[Archived] Trading Reward
        • How to Participate
          • Top Traders Campaign
          • CAKE Stakers Campaign
        • FAQ
      • 🤝[Archived] Simple Staking
        • How to start Simple Staking
        • FAQ
        • Terms & Conditions
      • 🎯[Archived] PancakeSwap Quest
        • Getting Started
        • How to Join and Complete a Quest
        • Rewards
      • 💧[Archived] Liquid Staking Integration
        • How To Liquid Stake
        • WBETH
          • WBETH FAQ
        • SnBNB
          • SnBNB FAQ
      • 💸[Archived] Options
        • Options Primer
        • CLAMM Options
        • Options FAQ
      • [Archived] CAKE Syrup Pool
        • How to use the Flexible Staking option
        • How to use the Fixed-Term Staking option
    • Old Tokenomics
      • CAKE Tokenomics v1
      • Controlling CAKE supply v1
    • How to Use Farms with BscScan
    • [Archived] Affiliate Program
      • Dashboard & Link
      • Commission Structure and Payment
      • Program Rules & Guidelines
      • Terms & Conditions
  • Trade
    • 🔄Swap
      • Token Swaps
      • How to Trade
      • Fees and Routes
      • Market Maker Integration
      • Smart Router (V2)
        • How to trade using Smart Router
    • ♾️PancakeSwap Infinity
      • Key Features
      • Hooks
        • Dynamic Fee Hook
      • Pool Types
      • Farms
    • 🎯Limit Orders and Twap
      • How to use Limit Orders
      • How to use TWAP
    • 📈Perpetual Trading
      • What is Perpetual Trading?
      • Perpetual Trading V2
        • How can I use it?
        • Dumb Mode
          • Dumb Mode Guide
        • Degen Mode
          • Degen Mode Dynamic Fee
        • MADBTCUSD
          • MADBTCUSD FAQ
        • Perpetuals V2 Glossary
        • Forex
        • Perpetual Trading FAQ
          • Arbitrum
            • ALP Syrup Pool (Arbitrum)
              • ALP Buying & Selling Fees
        • Trading Rewards Program
          • Arbitrum
        • Supported Chains, Modes & Markets
      • Perpetual Trading V1
        • Perpetuals V1 Glossary
        • How can I use it?
        • V1 Perpetual Trading FAQ
    • 🏦Stableswap
      • How to StableSwap
    • 💳Buy Crypto
    • ❓Trading FAQ
      • Swap FAQ
      • v4 FAQ
      • Limit Orders and TWAP FAQ
  • Bridge
    • 🌉Bridging
      • Between EVMs
      • Between EVM and Aptos
      • Wormhole Bridge Guide
    • ❓Bridging FAQ
      • Wormhole Bridge FAQ
  • Earn
    • 🌊Liquidity Pools
      • How to Add/Remove Liquidity
      • ⛏️Pancake Picks
      • Zap
        • Zap (V2)
    • 🚜Yield Farming
      • How to Use Farms
        • How to Use Farms (Legacy)
      • APR/ROI/IL Calculator
      • Farming on Aptos
        • FAQ
      • Crosschain Farming
        • FAQ
    • 🥩Cake Staking
      • 🍯Syrup Pools - Stake CAKE
        • Syrup Pools
    • 🛍️IFO (Initial Farm Offering)
      • How to Participate in an IFO
      • How to Participate in CrossChain IFOs
      • FAQ
      • NFT Profile System
        • How to Set Up an NFT Profile
        • Teams
      • Contract Details
    • ❓Earn FAQ
      • Cake Staking FAQ
        • Syrup Pool FAQ & Troubleshooting
  • Play
    • 🔮Prediction
      • How to Use Prediction
      • AI Prediction
      • Prediction FAQ
      • Prediction Troubleshooting
      • Prediction Mini App
    • 🎟️Lottery
      • How to Play Lottery
      • Lottery FAQ
  • ❓Play FAQ
  • Trading Tools
    • 🛡️PancakeSwap MEV Guard
    • PancakeSwap Auto Slippage
      • How to Set Slippage on PancakeSwap
    • 🔔Notifications
    • ❓Trading Tools FAQ
      • MEV Guard FAQ
  • Protocol
    • 🍰CAKE Tokenomics
    • 📔Governance
      • How to Vote
    • 💻Developers
      • Developer Docs
      • Contributing
        • Codebase Overview
Powered by GitBook
On this page
  • Market Maker Integration on Ethereum
  • Fees

Was this helpful?

  1. Trade
  2. Swap

Market Maker Integration

PreviousFees and RoutesNextSmart Router (V2)

Last updated 1 month ago

Was this helpful?

Market Maker Integration on Ethereum

PancakeSwap is integrated with market makers on Ethereum and Binance Smart Chain to help traders execute trades at a lower cost.

There are 2 scenarios in which market makers operate on PancakeSwap.

Scenario 1: Existing AMM liquidity pools

If PancakeSwap already has liquidity for a given token (e.g. WETH/USDC) in the AMM, PancakeSwap will ask market makers for a quote on the same trade. PancakeSwap’s smart router will then route the trade request to the AMM or the market makers depending on which source of liquidity is giving the best price at any given time.

Scenario 2: No existing AMM liquidity pools

In such a scenario, the smart router will automatically route the trade to the market makers. However, this does not stop projects from setting up their AMM liquidity pool subsequently and working with us to maintain decentralized DEX liquidity.

Fees

PancakeSwap does not charge traders any fees executed through us and which are executed by the market makers. However, PancakeSwap receives 0.05% trading fees from whitelisted market makers for volumes executed by them. PancakeSwap receives a reduced 0.01% trading fee if the trades executed are between stablecoin pairs. Please refer to the fee breakdown below:

Trades
Trading Fees
PCS fee from MM
Cake Burn
Pancakeswap Treasury

Bridged coins from other networks

N/A

0.25%

0.083%

0.167%

Non-stablecoin on Ethereum (e.g. ETH/USDC)

N/A

0.05%

0.017%

0.033%

Non-stablecoin on BSC (e.g. BNB/USDT)

N/A

0.05%

0.017% 

0.033%

Stablecoin to Stablecoin on Ethereum

N/A

0.01%

0.003%

0.007%

Assets currently supported

The following assets are currently supported and may increase/decrease depending on the market maker(s):

On Ethereum

  • Majors: WETH, WBTC

  • Stablecoins: USDT, USDC, DAI, BUSD

  • Other popular ERC-20 assets: MATIC, DYDX, CRV, LINK, APE, CVX, STG, LDO, SNX, RNDR, FET

On Binance Smart Chain:

  • Majors: BNB, ETH, BTCB

  • Non-native BNB tokens: ARB, OP

Please note that unlike AMMs, market makers will not be able to trade at any amount and the amounts they are willing to execute will depend on their own liquidity. It is not unusual that sometimes very large orders cannot be totally fulfilled. We advise users to please review the quotes carefully to ensure that each trade reflects the price and quantity according to their needs.

Market maker downtimes

Market makers are not expected to quote 24-7. There are some instances (e.g. key economic events, system upgrades) where the market maker may be temporarily unavailable to provide a quote. Please note during these periods, these tokens will simply not be tradable, and we advise users to wait for some time before the market maker comes back online.

FAQs

Q. Will the market makers be integrated on Aptos?

Ans: Possibly, we are only launching market makers integration on Ethereum and Binance Smart Chain for now to boost the liquidity for a better user experience. We will continue to monitor other chains.

Q. How will PancakeSwap generate revenue if it does not charge users a fee?

Ans: PancakeSwap will not charge any fees from users, but PancakeSwap will receive a small commission from market makers and use that to fund the CAKE buyback and burn.

Q. Will Liquidity providers continue to earn LP fees?

Ans: Yes, liquidity providers will continue to earn 0.17% trading fee reward (LP fees) and yield on the CAKE farms.

Q. Will the market makers add liquidity to the AMM? Will that cause APR to go down?

Ans: Market makers maintain their own separate liquidity, and hence won’t be earning any APR from trades on the AMM. Only LPs will earn fees and APRs from providing liquidity to the AMM pools.

Q. I’m providing liquidity on Ethereum PancakeSwap. Do I need to do anything?

Ans: No, You don’t have to do anything. You will continue to earn the LP fees for the trades executed through AMM and will continue to make the yield in CAKE.

Q. How can someone become a market maker?

Ans: We screen and work with market makers on an individual basis. Please approach us directly or through our admins if you have an interest in working with us.

In addition to the AMM, trades on PancakeSwap can now be routed to designated white-listed market makers if they offer trade execution that is better than the AMM’s current prices. This routing is done automatically by a so that trades are only routed to market makers when they are actively quoting better prices. Where the AMM is more competitive, traders will be routed to the AMMs for execution.

🔄
Smart Router