Leading decentralized exchange (DEX) PancakeSwap has officially rebranded its latest version, PancakeSwap v4, to PancakeSwap Infinity, marking a major leap forward in functionality and user experience. The announcement was accompanied by a modest market reaction, with PancakeSwap’s native token, CAKE, rising by 3.15% to trade at $2.12.
Initially launching on BNB Chain, PancakeSwap Infinity is set to roll out across multiple blockchains in the future as part of its expansion strategy.
Key Upgrades Introduced with PancakeSwap Infinity
The rebrand is more than cosmetic PancakeSwap Infinity introduces significant technical upgrades aimed at enhancing trading flexibility, liquidity provision, and gas efficiency.
One of the core enhancements is support for multiple liquidity pool types. Liquidity providers (LPs) can now select between Concentrated Liquidity Automated Market Maker (CLAMM) pools and Liquidity Book Automated Market Maker (LBAMM) pools based on their trading strategies. This move provides LPs with tailored options, allowing for either precision-focused liquidity concentration or more traditional liquidity approaches.
In addition, PancakeSwap Infinity brings in customizable fee structures. Liquidity providers can now choose between static fees, which remain fixed, or dynamic fees, which can fluctuate based on market and liquidity conditions. This flexibility stands in stark contrast to previous versions of PancakeSwap, where fees were confined to fixed tiers.
Gas efficiency has also been significantly improved. PancakeSwap Infinity boasts:
- Up to 99% reduction in pool creation gas costs
- Around 50% less gas usage for swaps involving native tokens like Ethereum (ETH) and Binance Coin (BNB) compared to standard ERC-20 token swaps
Furthermore, the platform now supports “Hooks,” an external contract mechanism that enables developers to implement additional features like trading discounts, dynamic fees, and custom liquidity strategies opening up new possibilities for innovation on PancakeSwap.
CAKE Token Price Action
Following the announcement, CAKE’s price ticked higher by 3.15%, currently trading at $2.12. Technical indicators show a neutral to slightly bullish momentum, with CAKE trading above both its 20-day EMA and 50-day SMA. The Relative Strength Index (RSI) stands at 51.36, signaling balanced market conditions with a modest bullish bias.
Outlook
PancakeSwap Infinity’s launch marks an important evolution for one of DeFi’s most popular platforms. With its focus on flexibility, developer innovation, and cost efficiency, PancakeSwap is positioning itself to compete more aggressively across multiple blockchain ecosystems as decentralized finance continues to mature.
Investors and liquidity providers will be closely watching how the latest upgrades impact trading volumes, liquidity incentives, and CAKE’s price performance in the months ahead.
