Pool Types

PancakeSwap Infinity supports a modular AMM architecture that enables multiple pool types, each governed by a specific Pool Manager. These Pool Managers are singleton contracts that contain unique swap and liquidity logic. The two primary AMM models currently supported are:

🔷 CLAMM (Concentrated Liquidity AMM)

CLAMM enables liquidity providers to allocate their capital within specific price ranges. This leads to:

  • Higher capital efficiency: More liquidity at active trading prices.

  • Deeper liquidity: Better execution for traders.

  • Active LP management: LPs need to adjust positions as prices move.

  • Higher impermanent loss potential for out-of-range positions.

CLAMM operates on the constant product formula (X * Y = K). Each liquidity position is non-fungible and represented as an NFT.

🔷 LBAMM (Liquidity Book AMM or “Bin Pool”)

LBAMM implements discrete price bins, each holding liquidity at a specific price level. LBAMM follows the constant sum formula (X + Y = K).

Key characteristics:

  • 0 price impact trades within a bin.

  • Fungible liquidity (liquidity within each bin is an ERC-20 token).

  • Lower gas costs for adjusting LP positions.

  • Support for different liquidity shapes (e.g., skewed, uniform).

  • More suitable for low volatility pairs due to the flat pricing curve per bin.

🥞 PancakeSwap is the first protocol to offer LBAMM pools with hooks.

Feature

CLAMM

LBAMM

Pricing Curve

Constant Product (X * Y = K)

Constant Sum (X + Y = K)

Liquidity Token

Non-fungible (NFT)

Fungible (ERC-20 per bin)

Best For

Both high/low volatility pairs

Low volatility pairs

Advantages

  1. Capital efficiency

  2. Gas efficient in wide/full range

  3. Widely adopted

  1. 0 price impact within bin

  2. Cheaper LP management

  3. Flexible liquidity shapes

Hook Support


🧮 Fees

PancakeSwap Infinity supports a flexible and extensible fee system through Static and Dynamic fee settings. This setup gives both pool creators and LPs powerful tools to optimize for different trading strategies and risk profiles.

🔁 Dynamic Fees

  • Dynamic Fees are determined in real-time via hook contracts.

  • These fees can fluctuate based on external factors such as volatility, trading volume, user status (e.g., CAKE holdings), or any custom logic coded into the hook.

  • Pools with dynamic fees must enable the setting at the time of pool creation and attach a hook capable of modifying fees via beforeSwap.

  • Once a pool is initialized, the fee type (dynamic or static) is immutable.

Dynamic fees offer maximum flexibility and optimize fee structures for both LPs and swappers based on market conditions.

📌 Static Fees

  • Static Fee pools have a fixed fee set during pool creation.

  • These fees cannot be changed after the pool is initialized.

  • Suitable for simpler use cases or where predictability of fee structure is important.

🔒 Max Fee Caps:

  • CLAMM Pools: Up to 100% (mostly for specialized or experimental use cases)

  • LBAMM Pools: Capped at 10%

🏛 Protocol Fee (for static fee pools):

  • PancakeSwap applies a protocol fee on Infinity pools

  • 33% of LP fee, capped at 0.4%

LP Fee

Protocol Fee

1%

0.33%

2%

0.4% (capped)

Dynamic Fee Pool

0%

🛠️ Setup Notes for Pool Creators

  • When initializing a pool via PoolManager, the creator must choose:

    • Whether the pool uses a static or dynamic fee

    • Whether a hook contract is attached (required for dynamic fees)

These settings are permanent and define how the pool behaves throughout its lifetime.

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