PancakeSwap V3

PancakeSwap is a leading DEX that uses concentrated liquidity AMMs (v3) for its core swap pools. Instead of distributing liquidity across the full price curve, LPs allocate capital to specific price ranges, improving capital efficiency and fee generation when the market trades within those ranges.

Our PancakeSwap V3 integration exposes PancakeSwap v3 liquidity positions as yield that can be entered and exited via a single, simple action:

1. Add liquidity a supported asset pair into a chosen PancakeSwap v3 pool while optionally setting the price range for their position. Following the deposit, users receive an LP share token (receipt token) that represents their underlying position.
2. Remove liquidity by redeeming the receipt token the position is unwound (or a portion of it) and the underlying assets are returned to the user

Each PancakeSwap v3 position maps to a specific price range and users wishing to update the range, need to withdraw liquidity and create the position again with updated parameters.

Pending Actions

Claim Rewards

Earned yield accrues to a rewards balance that you can track via our /stake/balances endpoint. To claim these rewards to the user's available balance, the CLAIM_REWARDS pending action is available.

Considerations

• Concentrated liquidity & range behavior
  • The PancakeSwap integration introduces concentrated liquidity. This implies:
    • In-range vs. out-of-range
      • When the pool price is inside the configured price range, the position earns trading fees and behaves like a normal LP position.
      • When the price moves outside the range, the position stops earning trading fees and becomes effectively one-sided (100% in token A or token B depending on direction).
• Range management
  • Users are able too determine how narrow or wide the price range is. Note, the price range can be adjusted only when adding liquidity. Subsequent changes require the user to remove liquidity and add it back with an updated range.
  • Narrower ranges can generate higher fee APR but require more active management and are more likely to go out of range.
  • Wider ranges are more passive but less capital efficient.
• Impermanent loss (IL)
  • As with any AMM, LPs are exposed to IL relative to holding the underlying tokens.
  • Concentrated liquidity can increase IL magnitude for very tight ranges, especially during strong directional moves.
• Trading fees
  • Fees accrue from swaps in the underlying v3 pool, at the pool’s fee tier (e.g. 0.01%, 0.05%, 0.25%, etc.) which can be retrieved from the yield's name.

List of Integration IDs

Ethereum

BNB Chain

Base

Arbitrum

Monad

Linea