PancakeSwap has cemented its position as the go-to multichain Decentralized Exchange (DEX) since its inception as a simple AMM in 2020. Now, with the launch of PancakeSwap v4, developers have even more reasons to choose PancakeSwap as their platform of choice for building innovative solutions to shape the future of DeFi. Here's why you should build on PancakeSwap v4:

1. Customization and Flexibility to Build Your Version of DEX: PancakeSwap v4 gives unprecedented freedom to developers to customize and tailor your own version of DEX through hooks. Hooks empower developers to introduce custom functionalities for swappers and liquidity providers, such as dynamic fees, on-chain limit orders, custom oracles and much more.

2. Support for Multiple Pool Types: PancakeSwap v4 supports implementation of multiple pool types, including the CLAMM, Liquidity Book AMM, and any other potential AMM models in the future. It's the first DEX to support any pool type with feature extension through hooks, providing developers with a diverse range of options to enhance capital efficiency for LP and trading flexibility for users.🧟‍♂️

3. Revenue Opportunities: Developers can generate a consistent revenue stream through Hook fees, allowing them to set fees for utilizing their Hooks. By setting fees for utilizing the Hooks, developers have the potential to generate consistent income while contributing to the growth and development of the PancakeSwap ecosystem. It's not just about building – it's about building sustainably and reaping the rewards of your innovation.

4. Exposure to a Large User Base and Deep Liquidity: PancakeSwap has served over 37M users till date, with 1.8M active users currently and $2.24B in liquidity, developers have an unparalleled opportunity to tap into a vast and active community.🧟‍♂️

5. Support and Incentives through the Developer Program: PancakeSwap is committed to supporting developers every step of the way. Through our Developer Program worth $500K and the CAKE Emission Grant Program, we provide resources, support, and incentives to fuel your creativity and drive innovation. From growth campaigns and hackathons to bounty programs and developer ambassador initiatives, we're here to help you succeed in DeFi.

How to Build a Hook?

This guide walks you through the process of setting up and working with hooks in PancakeSwap V4. Follow the steps 🧟‍♂️ below to start using the PancakeSwap V4 hooks template.

Setting Up Your Environment

1. Create a new 🧟‍♂️ repository: Navigate to PancakeSwap v4 Hooks Template. Click on “Use this template” to create a new repository based on the template.

2. Before proceeding, ensure that foundry is installed on your system. Then, execute the following commands in your project directory to install necessary dependencies and verify setup is correctly configured:

a. forge install: to install project dependencies

b. forge test: to run the tests

Working with hooks

Depending on your requirements, choose between the concentrated liquidity or the liquidity book hook:

• For concentrated liquidity hooks: navigate to src/pool-cl

• For liquidity book hooks: navigate to src/pool-bin

Concentrated liquidity hook:

• Inspect src/pool-cl/ClCounterHook.sol to understand how to implement a hook that register 4 callbacks: beforeAddLiquidity | afterAddLiquidity | beforeSwap | afterSwap.

Liquidity book hook:

• Inspect src/pool-bin/BinCounterHook.sol

Writing hook test

Navigate to the test directory corresponding to your hook type (test/pool-cl for concentrated liquidity hooks or test/pool-bin for liquidity book hooks). Both testing environments include TestUtils to assist with deploying and setting up pool managers, facilitating the testing process.

Above is the rough guideline on developing a hook. For detailed instructions, proceed to the developer docs at https://developer.pancakeswap.finance/contracts/v4/guides/develop-a-hook

PancakeSwap v4 provides developers with the tools, flexibility, and opportunities they need to thrive in the ever-evolving world of DeFi. By building on PancakeSwap, developers can unlock new levels of innovation and contribute to the growth and development of the DeFi ecosystem. Join us on PancakeSwap v4, and let's build the future of DeFi together.

PancakeSwap v4 Directory

PancakeSwap v4 page

Introducing PancakeSwap v4: For Developers, Traders & Every User

PancakeSwap v4 Whitepaper

PancakeSwap v4 FAQ

Mochi's vision for PancakeSwap v4

Why should Developers build on PancakeSwap v4 and How to build Hooks

Introducing PancakeSwap’s $500K Developer Program and CAKE Emissions Grant Program

What’s in it for Developers, DeFi Protocols, Traders, and Liquidity Providers

PancakeSwap v4 Developer Docs