PancakeSwap Launches Infinity Upgrade On Base, Expanding DeFi Infrastructure And User Flexibility
In Brief
PancakeSwap has launched its upgraded Infinity platform on Base, introducing advanced liquidity models, dynamic fee mechanisms, and gas-efficient infrastructure to enhance DeFi trading and development.
Decentralized exchange (DEX), PancakeSwap announced the launch of PancakeSwap Infinity on Base, an Ethereum Layer 2 network experiencing rapid growth. This latest iteration introduces a significant upgrade to the DEX infrastructure, designed to accommodate a broad spectrum of decentralized finance (DeFi) users.
PancakeSwap Infinity incorporates a range of new functionalities, including support for two types of liquidity pools and programmable smart contract features. The platform allows for dynamic fee structures through the use of “Hooks,” an integrated smart contract mechanism, while incorporating gas-optimization tools aimed at minimizing transaction costs. The open-source nature of the platform also encourages further development and customization by third-party builders.
Liquidity providers on Base can now choose between two models. The Concentrated Liquidity Automated Market Maker (CLAMM) enables participants to allocate liquidity within defined price ranges, optimizing capital efficiency and reducing slippage. Alternatively, the Liquidity Book Automated Market Maker (LBAMM) offers a more streamlined trading experience by using a bin-based structure that allows for trades without immediate price shifts.
The release of PancakeSwap Infinity marks a continued effort to provide adaptable and efficient infrastructure for users and developers operating within the DeFi ecosystem.
Flexible Fee Mechanism Enabled By Customizable Hooks
PancakeSwap has implemented a dynamic fee mechanism using a smart contract module known as a Hook, which adjusts trading fees in response to market conditions. In periods of low volatility, fees remain minimal to support efficient and cost-effective trading. During heightened market activity, fees increase to help mitigate risks such as arbitrage, offering additional protection for liquidity providers.
Hooks are modular, customizable smart contracts that enable the creation of specialized features within liquidity pools and trading systems. These modules can be programmed to introduce a variety of mechanisms, including trading incentives, reward structures, and automated liquidity management strategies.
The PancakeSwap Infinity upgrade is open-source and available on the Base network, allowing developers to utilize Hooks to build and refine decentralized finance applications. Additionally, participation in the CAKE Emission Program offers potential rewards for both developers and liquidity providers contributing to the ecosystem’s growth. Technical resources such as the project’s GitHub repository, whitepaper, and documentation are available to support ongoing development efforts.
One of the core improvements introduced with PancakeSwap Infinity involves enhanced infrastructure aimed at reducing gas costs, aligning well with the BASE network’s emphasis on cost-efficient transactions. The use of a Singleton Contract Architecture lowers the expense of creating new pools by as much as 99%. Additionally, native token swaps on the platform consume approximately 50% less gas for ETH-based trades compared to traditional ERC-20 token transactions. The integration of the ERC-6909 token standard further minimizes the cost of frequent contract interactions, collectively contributing to a more efficient DeFi experience for both traders and liquidity providers.
Beyond infrastructure, PancakeSwap Infinity also incorporates a Universal Router designed to optimize trade execution. This system automatically identifies and utilizes the most efficient trading paths across PancakeSwap v2, v3, and Infinity pools. Regardless of where liquidity is concentrated, trades are executed with minimal slippage and lower gas consumption, ensuring cost-effective transactions across the platform.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
