Dear PancakeSwap Community,
After the successful launch of Market Maker Integration on Ethereum PancakeSwap, we have been listening to your feedback and are thrilled to announce that we are extending this feature to BNB Smart Chain. You can now trade BNB and ETH with reduced slippage and the best possible pricing on the BNB Smart Chain.
Liquidity is crucial to the success of decentralized exchanges (DEX) as it ensures that there are enough assets for traders to execute their orders without experiencing significant slippage in price. Hence, Market Maker Integration plays a key role in providing an additional source of liquidity to PancakeSwap by constantly offering to buy and sell assets at certain prices which reduces price volatility and enhances the liquidity, pricing, and overall trading experience for traders. Additionally, PancakeSwap will not charge any trading fees for the BNB Smart Chain Market Maker Integration, providing users with the lowest trading fees on the platform. As a result, users can now trade on PancakeSwap at the most affordable prices, enhancing the platform’s appeal and competitiveness.
How does Market Maker integration work? ~tldr: select the tokens you want as you would in a regular trade
- Enter the token amount you want to trade on BNB Smart Chain PancakeSwap on the usual Swap page.
- PancakeSwap will send requests to the Market Maker(s) (MM) for the latest quotes.
- PancakeSwap will automatically compare prices quoted by the Market Maker(s) and the Automated Market Maker (AMM).
- The route with the better price, (MM or AMM) will be sent back to the user.
- The user will be prompted to confirm the trade. Quotes will be refreshed every 5 seconds.
- Once the user confirms the final quote, a quote is sent through the wallet to sign the transaction to the smart contract for execution.
- Smart contract sends the swapped tokens from MM or AMM pool to users and sends the user’s token to MM or AMM.
- Please note that during market-sensitive events, such as significant economic announcements, MM may temporarily halt quoting, while the AMM will continue to facilitate trades. It is recommended to check back and resume trading after these events have concluded if you want to trade with MMs.
What are the fees for trades executed through the Market Maker?
- PancakeSwap will not charge users any trading fees to ensure we can offer the best execution price possible.
- PancakeSwap is compensated a 0.0375% fee for trades routed to the market makers.
- If transactions are routed through the PancakeSwap AMM then users will pay the usual 0.25% trading fees on PancakeSwap AMM and 0.01% trading fees on the StableSwap.
What does this mean for Liquidity Providers on BNB Smart Chain? On PancakeSwap, there are distinct responsibilities for market makers and liquidity providers. Liquidity providers contribute assets to the liquidity pool and receive rewards proportional to the trading fees generated. On the other hand, market makers are essential to sustaining liquidity and reducing trading expenses. Liquidity providers are the foundation of PancakeSwap and will continue to earn 0.17% trading fee rewards and yield on CAKE farms. Market makers will not receive any CAKE rewards for providing liquidity. Please refer to this article for the full fee schedule.
To learn more about this feature please refer to our documentation here. We’re always striving to make the experience better for you! If you have any feedback, please let us know on Twitter, Telegram, and our Discord Server!
Stack ’em The Chefs 🐰🥞