PancakeSwap Infinity: Flexible Pools and Lower Fees Reshape DeFi

PancakeSwap Unveils Infinity: Expanding DeFi Capabilities

PancakeSwap, one of the leading decentralized exchanges (DEX), launched PancakeSwap Infinity on April 28, 2025. Previously known as v4, this major upgrade introduces multiple pool types, customizable features, and significant gas savings for all users.

The rebrand from v4 to "Infinity" highlights the platform's focus on unlimited possibilities in decentralized finance. According to Chef Kids, Head of PancakeSwap, “The rebrand to Infinity reflects our vision for an open-ended future in DeFi. “Infinity” isn’t just a name, it represents the endless possibilities we see ahead. We want to create a platform that keeps evolving, grows with users' needs, and always stays ahead of the curve.”

PancakeSwap Infinity offers unprecedented flexibility for traders and liquidity providers while reducing transaction costs through technical improvements to the platform's infrastructure.

Key Technical Features Driving PancakeSwap Infinity

Multiple Pool Types for Different Trading Strategies

PancakeSwap Infinity supports multiple pool types, setting it apart from other decentralized exchanges. At launch, the platform offers two main pool options:

• CLAMM (Concentrated Liquidity AMM): This pool type allows liquidity to be focused within specific price ranges. This increases capital efficiency and creates deeper liquidity within those ranges. CLAMM works well for both high and low-volatility trading pairs.
• LBAMM (Liquidity Book AMM): This simplified solution works best for low-volatility pairs. A key technical advantage is that trades within a price bin happen without any price impact, making transactions smoother and more predictable.

Users can select the pool type that best matches their trading strategy and risk tolerance.

Custom Fee Structures for Greater Control

Unlike previous versions with fixed fee tiers, PancakeSwap Infinity gives liquidity providers full control over fee structures:

• Static fees: Set at pool creation and remain constant, providing consistency and predictability
• Dynamic fees: Adjusted based on market conditions using customizable hooks

This flexibility allows users to optimize their trading and liquidity provision strategies based on market conditions.

Hook System Enables Custom Trading Features

PancakeSwap Infinity introduces "Hooks" – externally deployed smart contracts that function as add-ons to pools. These hooks enable:

• Dynamic trading fee adjustments
• Trading discounts for specific users
• Optimized liquidity returns
• Automated pool management

For traders, PancakeSwap's Smart Router automatically selects the most favorable pool for each trade, whether from standard pools (v2, v3) or hook-enabled Infinity pools. Traders can also manually select pools with specific hooks for a customized experience.

Liquidity providers benefit by choosing pools with hooks that match their financial goals, helping them maximize returns while reducing risks.

Significant Gas Savings Through Technical Improvements

The PancakeSwap Infinity upgrade delivers major gas (transaction fee) reductions through several technical improvements:

• Singleton Contract: By consolidating all liquidity pools into a single contract, pool creation costs have dropped by up to 99%
• Flash Accounting: Processes multiple transactions simultaneously, reducing the cost per swap
• ERC-6909 accounting: Further reduces costs for frequent transactions
• Native token swaps: ETH and BNB swaps see 50% lower gas fees

These optimizations make DeFi transactions more cost-effective and accessible to users with smaller portfolios.

Open-Source Approach Supports Community Innovation

PancakeSwap Infinity's codebase will be released under an open-source license, allowing developers to build upon, customize, and improve the platform. This approach encourages collaboration across the DeFi ecosystem.

"By making the platform open-source, we're encouraging innovation and fast-tracking the growth of the DeFi space," explains Chef Kids. "The more people contribute, the faster we can push the boundaries of what's possible."

PancakeSwap has already partnered with several protocols to introduce innovative hooks across the Infinity pools at launch.

Multichain Expansion Begins with BNB Chain

PancakeSwap Infinity is launching first on BNB Chain, with plans to expand to additional blockchain networks soon. This multichain approach will increase accessibility for users across different blockchain ecosystems.

What This Means for DeFi Users

"PancakeSwap Infinity is just the beginning. DeFi is still in its early stages, and we're excited to be part of shaping its future. With Infinity, we're building a platform that can grow and evolve alongside the DeFi space." - Chef Kids, Head of PancakeSwap.

PancakeSwap Infinity represents a significant technical advancement for decentralized exchanges. The combination of flexible pool types, customizable features through hooks, and reduced transaction costs creates a more efficient trading environment.

For traders, the platform offers more control over trading strategies and costs. For liquidity providers, the multiple pool types and customization options allow for more precise risk management and potentially higher returns.

With its open-source approach and focus on flexibility, PancakeSwap Infinity aims to evolve alongside the rapidly changing DeFi landscape, providing tools that adapt to user needs and market conditions. Visit Pancakeswap at pancakeswap.finance or follow them on X (@PancakeSwap) to stay updated on their latest news.