## **What is Impermanent Loss?**

Impermanent loss occurs when the value of assets in a liquidity pool diverges from their initial value. This divergence happens as the automated market maker (AMM) adjusts the asset ratios in the pool to maintain balance. When the price of one asset rises or falls significantly compared to the other, liquidity providers (LPs) may face a loss compared to simply holding the assets outside the pool.

## **How Does Impermanent Loss Happen?**  

**Price Fluctuations**: When you add liquidity to a pool, you provide two assets in a 50/50 ratio (e.g., BNB/USDT). If the price of BNB increases while USDT remains stable, the pool will adjust the ratios to reflect the new prices. This adjustment can lead to having more USDT and less BNB, potentially resulting in a loss if you withdraw your liquidity.


**Market Volatility**: In highly volatile markets, the price changes of the pooled assets can be drastic. The more significant the price change, the larger the impermanent loss.

**Arbitrage Activities**: Traders exploit price differences between the liquidity pool and external markets to make a profit. Their trades adjust the asset ratios in the pool, potentially leading to impermanent loss for LPs.


## **Example of Impermanent Loss**

Twinkle decides to provide liquidity to the BNB/USDT pool on PancakeSwap. She deposits 1 BNB and 500 USDT, with the price of BNB being $500 at the time. The total value of her deposit is $1,000. Over time, the price of BNB increases to $800, but the pool adjusts the ratios to maintain balance. Twinkle now has 0.774 BNB and 619.2 USDT in the pool. If she withdraws her liquidity, the combined value of her assets is $1,235.36 instead of the $1,300 she would have if she simply held her 1 BNB and 500 USDT. The difference, $64.64, is her impermanent loss.

## **How to Minimize Impermanent Loss**

**Choose Stable Pairs**: Provide liquidity to pools with stable assets like stablecoins (e.g., USDT/USDC). These pairs experience minimal price fluctuation, reducing the risk of impermanent loss.

**Diversify Your Investments**: Don’t put all your assets into one liquidity pool. Diversifying across multiple pools can help spread the risk.

**Use Impermanent Loss Protection**: PancakeSwap works with Position Manager partners to provide strategies that can minimize impermanent loss.These strategies adjust LP ranges based on market volatility and directional trends, automatically rebalancing itself to maximize fees while minimizing the strategy's impermanent loss, providing an automated LP experience to the liquidity providers.

Try Position Manager: [https://pancakeswap.finance/position-managers](https://pancakeswap.finance/position-managers)

**Stay Updated**: Monitor the market trends and the performance of your liquidity pools regularly. Being aware of significant price movements can help you make informed decisions about when to add or remove liquidity.

## **Expect the change by PancakeSwap v4**

PancakeSwap v4 promises to bring custom pools and gas optimization, enhancing the overall DeFi experience. PancakeSwap v4 introduces several new features designed to make the platform more efficient and user-friendly.
One of the key features is Liquidity Book Pools, which follow the formula X + Y = K instead of the traditional X * Y = K. This new type of pool allows liquidity providers to experience no impermanent loss and traders to suffer no price impact when trading within a bin. The Liquidity Book AMM utilizes a constant sum formula within each bin, ensuring zero price impact trades and eliminating impermanent loss for LPs. Additionally, the fungibility of liquidity makes position adjustments cost-effective for LPs, supporting single-sided liquidity provisioning and enabling native limit orders akin to an order book model. This is the first Liquidity Book AMM implementation supporting hooks, allowing developers to introduce tailored features and optimizations to these pools.

Understanding impermanent loss is important for anyone participating in DeFi and providing liquidity on PancakeSwap. By comprehending how it works and implementing strategies to minimize it, you can maximize your returns and minimize risks. Always stay informed and make decisions based on thorough research and market conditions.

Cheers

The Chefs

Ready to unlock the world of DeFi? Dive into [**PancakeSwap Academy**](https://blog.pancakeswap.finance/?category=Academy) – your essential guide to mastering decentralized finance from the ground up!


Discover what impermanent loss is, how to minimize it, and the exciting new features in PancakeSwap to prevent it.

Understanding Impermanent Loss in DeFi and How to Avoid It: A Guide from PancakeSwap

The PancakeSwap Swap Bot is an innovative way to experience the simplicity and power of decentralized swapping directly through Telegram. Designed to be just as efficient as our web version, the bot offers a streamlined, mobile-friendly experience for placing swaps without requiring additional apps or complicated steps. Here’s your guide to getting started and executing your first swap on the PancakeSwap Swap Bot.


## __Accessing the PancakeSwap Swap Bot__

At its initial launch, the Swap Bot won’t be available in the Telegram app store. Instead, you’ll need to use a direct web link or interact with the bot to access its features. The bot is in beta, so you may see ongoing improvements as we perfect the user experience. 
 
___PancakeSwap Swap Bot: [https://t.me/pancakefi_bot](https://t.me/pancakefi_bot)___

To start, open the link provided, or if you’ve already connected with the bot, simply access it through your Telegram app. Once you’re in, the bot interface is designed to look and feel similar to the web app, giving you a familiar way to interact with PancakeSwap’s tools.


## __Step-by-Step Guide to Swapping on the Telegram Bot__

Ready to get started? Here’s how to make your first swap through the Telegram Bot:


### __1. Connect Your Wallet__

First, connect your wallet by tapping the “Connect Wallet” option, typically in the top-right corner of the bot interface. Choose your preferred network and select your wallet type. If you’re using a browser extension wallet, click the wallet icon and follow the on-screen instructions to complete the connection. 
 
![image5.png](https://sgp1.digitaloceanspaces.com/strapi.space/088284758c9d48a4de0a7eaf687eac8c.png)


### __2. Select Tokens and Enter Quantity__

Once connected, you can select the tokens you’d like to swap. Choose the token you want to exchange from the dropdown menu, then input the quantity you’d like to trade. Select the correct tokens and quantity before moving to the next step.

![image3.png](https://sgp1.digitaloceanspaces.com/strapi.space/b2909e3319f58f0b7855608f627ddbbd.png)

#### __3. Review Transaction Details__

After inputting the swap details, take a moment to review all transaction information. Look over each aspect of the transaction to ensure everything aligns with your expectations. The bot ensures a seamless transaction summary, so you’ll have all the key details in front of you.
![image1.png](https://sgp1.digitaloceanspaces.com/strapi.space/073b5ef9ed224e0bcf70a670ae1cc15a.png)


#### __4. Initiate the Swap__

When you’re ready, press __“Swap”__ to proceed. A confirmation prompt will appear for you to double-check your transaction details.


![image2.png](https://sgp1.digitaloceanspaces.com/strapi.space/d66a53ac958a2bdcc78f12b896ec2e11.png)


#### __5. Confirm the Swap__

Once you’ve reviewed all the transaction information, click “Confirm Swap.” You must confirm the transaction using your connected wallet extension at this stage. Once you approve it, your swap is complete.


![image4.png](https://sgp1.digitaloceanspaces.com/strapi.space/362f0890a55977580f9078bb90d1b161.png)




## __Why Use the PancakeSwap Swap Bot?__

The PancakeSwap Swap Bot is an efficient tool for users who want the freedom to swap tokens directly from their favorite messenger app without moving to another interface.  It provides the same decentralized, trustless experience as our web app, with the added convenience of Telegram. Whether you’re out and about or prefer mobile trading, the Swap Telegram Bot is an excellent alternative to traditional platforms.

### **PancakeSwap Telegram Bot Directory**

- **[PancakeSwap Launches Swap Bot on Telegram: Trade Over 3,000 Tokens on BNB Chain](https://blog.pancakeswap.finance/articles/pancake-swap-launches-swap-bot-on-telegram-trade-over-3-000-tokens-on-bnb-chain)**
- **[How to Swap on the PancakeSwap Swap Bot](https://blog.pancakeswap.finance/articles/how-to-swap-on-the-pancakeswap-swap-bot)**
- **[Why Telegram Bots Are Trending: Discover PancakeSwap's Prediction and Swap Bot](https://blog.pancakeswap.finance/articles/why-telegram-bots-are-trending-discover-pancakeswap-prediction-and-swap-bot)**


. Here’s your guide to getting started and executing your first swap on the PancakeSwap Swap Bot.

How to Swap on the PancakeSwap Swap Bot


Telegram bots are rapidly gaining traction in the DeFi space, transforming how users interact with markets, execute swaps, and manage predictions—all within their messaging app. From seamless accessibility to real-time transaction updates, these bots are redefining DeFi engagement. PancakeSwap’s Prediction and Swap Bots enable users to predict BNB movements and trade thousands of tokens on the BNB Chain, all from the convenience of Telegram. Let’s dive into why Telegram bots are trending in DeFi, the potential risks, and how you can start using PancakeSwap’s new Telegram bots today.


### __Why Telegram Bots Are Gaining Popularity in DeFi__



1. __Convenience and Speed__: Telegram bots bring DeFi directly to users without the need for complicated setups or switching between multiple apps. With everything accessible in one place, transactions are faster, allowing users to respond to market changes quickly.
2. __24/7 Access and Real-Time Alerts__: The crypto market operates nonstop, and so do Telegram bots. They keep users engaged with real-time alerts for swaps and predictions, making it easy to stay updated on trading activity.
3. __Comprehensive Access to Tokens__: With a wide selection of tokens available, Telegram bots allow users to trade across multiple tokens without needing to leave the messaging app, offering the convenience of a trading platform within a familiar interface.
4. __Enhanced User Engagement__: Telegram bots keep users close to the market with an interactive experience that allows rapid decision-making, making them ideal for those who prefer active trading and predictions.


### __Risks and Important Considerations When Using Telegram Trading Bots__

While Telegram bots offer ease and accessibility, users should approach them with care and remain aware of potential risks:



1. __Security Risks__: Ensure that you’re using only official bot links. For example, PancakeSwap’s official bot link is[ https://t.me/pancakefi_bot](https://t.me/pancakefi_bot). Enable two-factor authentication (2FA) on your wallet for additional security to protect against phishing attacks or other threats.
2. __Bot Reliability__: Like any software, bots may experience downtime or technical issues. Always keep track of your funds and be cautious when executing important transactions, especially during high volatility or if the bot becomes unresponsive.
3. __Over-Reliance on Automation__: While bots offer significant convenience, excessive reliance can detach users from market trends. Regularly review your trades and stay informed to make balanced decisions.


### __Discover PancakeSwap’s Prediction and Swap Bots__

PancakeSwap’s Prediction and Swap Bots bring DeFi directly to your Telegram feed. Whether you’re interested in predicting BNB movements or trading tokens effortlessly, these bots simplify staying active in decentralized finance.


#### __Prediction Bot__

The Prediction Bot offers a unique way to forecast BNB movements every five minutes on the BNB Chain. Simply choose “Up” or “Down” and enter your prediction amount. You can earn a share of the prize pool if your prediction is correct.

__Key Features of the Prediction Bot:__



* __Supported Token:__ BNB on BNB Chain
* __Round Duration:__ 5 minutes
* __Fees:__ 3% of each round’s pot goes to PancakeSwap’s treasury for buybacks, burns, and ongoing development


#### __Swap Bot__

With PancakeSwap’s new Swap Bot, users can access over 3,000 tokens across PancakeSwap v2, v3, and Stableswap on the BNB Chain directly through Telegram. The Swap Bot integrates wallet connections, real-time transaction updates, and a user-friendly interface.

__Key Features of the Swap Bot:__



* __Vast Token Access:__ Trade 3000+ tokens on the BNB Chain across PancakeSwap v2, v3, and Stableswap
* __Competitive Fees:__ Enjoy a competitive trading fee of as low as 0.01% on trades
* __Real-Time Notifications:__ Instant alerts for transaction updates within Telegram


### __How to Get Started with PancakeSwap’s Telegram Bots__

Here’s how to begin your journey with PancakeSwap’s Prediction and Swap Bots:



1. __Access the PancakeSwap Bot on Telegram__: _Click [here](https://t.me/pancakefi_bot) to start._
2. __Connect Your Wallet__: Use MetaMask or WalletConnect to make a secure connection.
3. __Start Trading or Predicting__: For predictions, simply select “Up” or “Down” based on your forecast BNB’s movement. For swaps, choose your token and amount to trade, all within Telegram’s streamlined interface.

To learn more about PancakeSwap’s Prediction and Swap Bots, visit[ our guide](https://docs.pancakeswap.finance/products/prediction/prediction-mini-app). Experience DeFi in the palm of your hand with PancakeSwap’s Telegram Bots—bringing you a secure, accessible, and powerful way to engage in decentralized trading directly from your favorite messaging app.

### **PancakeSwap Telegram Bot Directory**

- **[PancakeSwap Launches Swap Bot on Telegram: Trade Over 3,000 Tokens on BNB Chain](https://blog.pancakeswap.finance/articles/pancake-swap-launches-swap-bot-on-telegram-trade-over-3-000-tokens-on-bnb-chain)**
- **[How to Swap on the PancakeSwap Swap Bot](https://blog.pancakeswap.finance/articles/how-to-swap-on-the-pancakeswap-swap-bot)**
- **[Why Telegram Bots Are Trending: Discover PancakeSwap's Prediction and Swap Bot](https://blog.pancakeswap.finance/articles/why-telegram-bots-are-trending-discover-pancakeswap-prediction-and-swap-bot)**


 Let’s dive into why Telegram bots are trending in DeFi, the potential risks, and how you can start using PancakeSwap’s new Telegram bots today.

Why Telegram Bots Are Trending: Discover PancakeSwap's Prediction and Swap Bot

___Disclaimer and Risk Warning: This content is for general information and educational purposes only, without representation or warranty. It should not be construed as financial, legal, or other professional advice, nor intended to recommend purchasing any specific product or service. You should seek advice from appropriate professional advisors.___

The evolution of DeFi has transformed how users interact with a range of decentralized services, from trading to asset management, in an accessible way. As DeFi grows, users face the challenge of navigating numerous protocols to optimize their transactions. **This complexity has led to the emergence of DeFi aggregators, platforms designed to consolidate multiple services into a single interface, enabling users to access the best prices and liquidity without the hassle. Among these, PancakeSwapX has introduced an innovative approach, enhancing user experience through zero-fee swaps, MEV protection, and gasless transactions.**


## **Understanding DeFi Aggregators**

**How DeFi Aggregators Work** : Aggregators operate by __scanning multiple DEXs and liquidity pools__ to assess liquidity, price, and transaction fees in __real-time__. Using algorithms, these platforms analyze trade options and select the route that offers the best pricing, highest liquidity, or lowest transaction costs.

 When a user initiates a trade, the aggregator’s smart contract executes the order by dividing it across multiple sources if necessary, ensuring the best possible outcome based on predefined parameters.

## **The Primary Benefits of DeFi Aggregators**

__Optimized Trade Execution__

Aggregators achieve optimized trade execution by assessing real-time data from various DEXs. Algorithms evaluate each source based on parameters like liquidity depth, slippage, and fees. This enables aggregators to split larger trades across several pools or platforms if needed, securing the best overall execution price for the user. For example, if a trade on a single platform would result in high slippage, the aggregator may distribute the trade across multiple liquidity pools to maintain optimal pricing.

__Lower Transaction Costs__

Aggregators minimize transaction costs by calculating the most efficient route across different protocols. Some aggregators factor in gas fees and even route trades through networks with lower gas requirements to save users money. Additionally, by combining orders or batching transactions where possible, aggregators can further reduce individual transaction costs. These cost-saving mechanisms are particularly advantageous on high-fee networks, such as Ethereum, where aggregators can route through Layer 2 solutions or more efficient chains.

__Enhanced Accessibility and User Convenience__

Aggregators simplify DeFi by consolidating trading, swapping, and liquidity provision into a single interface. This consolidated approach not only saves time but also helps users avoid the complexity of managing multiple tokens and wallets on different DEXs. By connecting to a wide range of protocols, aggregators also enable users to explore opportunities across the DeFi ecosystem without needing to master each platform individually. This convenience lowers the barrier to entry, allowing both novice and experienced traders to maximize their assets more efficiently.


## __PancakeSwapX: A New Era in DeFi Aggregation__

Since its inception, PancakeSwap has established itself as a leading multichain DEX, supporting billions in trading volume across nine chains. However, DeFi users still encounter challenges like high gas fees, fragmented liquidity, and the need to manage multiple tokens for gas across chains. To address these issues, PancakeSwap introduced __PancakeSwapX__, an aggregator built to enhance the user experience with optimized trade execution, zero fees at launch, and protection from MEV attacks.

__[PancakeSwapX](https://blog.pancakeswap.finance/articles/introducing-pancake-swap-x-zero-fee-and-gasless-swaps-on-ethereum-and-arbitrum)__ enhances your trading by aggregating liquidity from multiple sources, including PancakeSwap’s AMM, other DEXs, and external liquidity providers, locating users with better execution prices.


## How Does Liquidity Aggregation in PancakeSwapX Work?

PancakeSwapX enhances trading by intelligently aggregating liquidity from both its own pools and external DEXs to ensure users get the best execution and pricing:



* __Smart Liquidity Sourcing__: PancakeSwapX scans both internal and external liquidity sources to find the most favorable price, automatically routing trades to the optimal source.
* __Reduced Slippage__: By pulling liquidity from multiple sources, PancakeSwapX minimizes the price impact on trades, particularly for larger transactions.
* __Automatic Routing Across Chains__: Supporting both Ethereum and Arbitrum, PancakeSwapX automatically directs trades to the best available liquidity pool, so users don’t have to manage cross-chain or cross-platform selection manually.
* __Broader Token Access__: Even tokens without direct liquidity on PancakeSwap’s AMM are accessible, thanks to PancakeSwapX’s connections with other platforms.

For more details,[**read the full article on PancakeSwapX’s liquidity aggregation benefits**](https://blog.pancakeswap.finance/articles/pancakeswapx-s-liquidity-aggregation-benefits-and-implications).

The rise of DeFi aggregators has reshaped trading by centralizing liquidity, optimizing trade execution, and reducing costs. PancakeSwapX stands out with its features like gasless swaps, zero fees at launch, MEV protection, and dynamic liquidity routing. As the DeFi landscape continues to grow, platforms like PancakeSwap will be important in creating efficient, secure, and user-friendly experiences. 


 
Enjoy trading! 


The Chefs

The rise of DeFi aggregators has reshaped trading by centralizing liquidity, optimizing trade execution, and reducing costs. PancakeSwapX stands out with its features like gasless swaps, zero fees at launch, MEV protection, and dynamic liquidity routing. 

The Rise of DeFi Aggregators: How PancakeSwapX is Transforming the Trading Experience


## **What Are Hooks, and Why Should You Care?**

One of the key updates of [PancakeSwap v4](https://blog.pancakeswap.finance/articles/introducing-pancake-swap-v4-for-developers-traders-and-every-user) are "Hooks"—Externally deployed smart contracts that can be integrated to enhance the functionality of swaps and liquidity pools. These contracts, deployed separately from the core AMM logics and pool managers, act as customizable add-ons, enabling developers and protocols to execute predefined logic during key pool and swap actions.

Why is this important? It means the experience on PancakeSwap can now be tailored to meet different needs, allowing for dynamic fees, custom order types like take-profit orders, and improved liquidity management. It’s like upgrading from a basic toolkit to a fully customizable one, and it’s not just for the technical crowd—everyone can benefit from this innovation!


## **For Traders: A Smarter Trading Experience**



1\. **Dynamic Fees for Better Deals:** Unlike the fixed fee structure of previous versions, PancakeSwap v4's Hooks can enable dynamic fees, adjusting rates based on market conditions. This flexibility allows traders to enjoy more dynamic fees tailored to their trading volume and market activity, making every trade more efficient.

2\. **Advanced Order Types:** With v4, advanced trading tools like limit orders and take-profit orders are now possible through Hooks. This means traders can automate strategies directly on PancakeSwap without needing to monitor the market constantly, offering a more hands-off approach. 

3\. **Potential Gas Fees Reduction:** Gas costs can be a pain point for frequent traders. PancakeSwap v4 addresses this with 🎃 gas-optimizing features like Singleton contracts and Flash Accounting. By consolidating all pools into a single contract, traders save on gas fees during multi-hop swaps, allowing them to trade more efficiently and cost-effectively.


### **For Liquidity 🎃Providers: Optimization**

1\. **Boosted Capital Efficiency:** Hooks provide liquidity providers (LPs) with more control over how their liquidity is used. By integrating custom strategies into liquidity pools, LPs can optimize their position management. This means they can react to market changes more effectively, ensuring their capital is always working at its best potential.


2\. **Mitigating Impermanent Loss:** The new Liquidity Book AMM model, supported by v4, allows for liquidity to be stacked into price bins, enabling zero price impact trades within those bins. For LPs, this reduces the risk of impermanent loss, making liquidity provision more predictable and stable.


3\. **Gas Savings on Liquidity Adjustments:** With the introduction of the Singleton contract and Flash Accounting, v4 makes it more cost efficient for LPs to manage their positions. This means less gas spent when adjusting liquidity ranges or rebalancing positions,


## **For DeFi Users: A More Engaging DeFi Experience**



1\. **Enhanced Liquidity Pools:** The introduction of custom pool types in PancakeSwap v4 means users now have access to a broader range of liquidity pools that can be tailored to specific market conditions. 

2\. **Community-Driven Features:** PancakeSwap v4's 🎃open-source nature encourages developers to build custom Hooks that benefit the community. This means users can expect more innovative features over 🎃time, like community-voted fee models or new trading tools, making PancakeSwap a continually evolving platform.

3\. **A User-Centric Platform:** The flexibility of Hooks allows PancakeSwap to integrate features that cater to different user preferences. Whether it's adjusting swap parameters to reduce slippage or creating user-friendly liquidity management tools, v4 is designed to prioritize the needs of everyday DeFi users.


## **Ready to Experience PancakeSwap v4?**

The PancakeSwap v4 upgrade is about more than just technical improvements—it's about making DeFi work better for everyone. With features like dynamic fees, advanced trading tools, and gas-saving optimizations, v4 makes the PancakeSwap experience smoother, more cost-effective, and user-friendly for traders, LPs, and DeFi enthusiasts alike.

Whether you're looking to optimize your trading, enhance your liquidity provision, or simply explore new features, PancakeSwap v4 is your gateway to a more powerful DeFi experience. Dive into the future of decentralized trading and discover how PancakeSwap v4 is redefining the DEX landscape.


#### **PancakeSwap v4 Directory**

[**PancakeSwap v4 page**](https://pancakeswap.finance/v4)

[**Introducing PancakeSwap v4: For Developers, Traders & Every User**](https://blog.pancakeswap.finance/articles/introducing-pancake-swap-v4-for-developers-traders-and-every-user)
 
[**PancakeSwap v4 Whitepaper**](https://github.com/pancakeswap/pancake-v4-core/blob/main/docs/whitepaper-en.pdf)

[**PancakeSwap v4 FAQ**](https://blog.pancakeswap.finance/articles/pancake-swap-v4-answering-all-your-questions-about-v4)

[**Mochi's vision for PancakeSwap v4**](https://blog.pancakeswap.finance/articles/chef-mochi-s-vision-for-pancake-swap-v4-a-leap-forward-in-de-fi-innovation)

[**Why should Developers build on PancakeSwap v4 and How to build Hooks**](https://blog.pancakeswap.finance/articles/why-should-developers-build-on-pancake-swap-v4-and-how-to-build-hooks)

[**Introducing PancakeSwap’s $500K Developer Program and CAKE Emissions Grant Program**](https://blog.pancakeswap.finance/articles/introducing-pancake-swap-s-500-k-developer-program-and-cake-emissions-grant-program)

[**What’s in it for Developers, DeFi Protocols, Traders, and Liquidity Providers**](https://blog.pancakeswap.finance/articles/everything-you-need-to-know-about-pancake-swap-v4-what-s-in-it-for-developers-traders-liquidity-providers-and-defi-protocols)

[**PancakeSwap v4 Developer Docs**](https://developer.pancakeswap.finance/)


Why v4 is this important? It means the experience on PancakeSwap can now be tailored to meet different needs, allowing for dynamic fees, custom order types like take-profit orders, and improved liquidity management. 

Unlocking the Power of PancakeSwap v4: How Hooks Benefit Everyone

Since its launch in 2020, PancakeSwap has become one of the most popular decentralized exchanges (DEXs), known for its user-friendly interface and multichain features. However, as decentralized finance (DeFi) grows rapidly, **gas fees have become a significant hurdle for users.** These fees, which are required to process transactions on blockchain networks, vary depending on network congestion. Adding to this challenge is the **scattered liquidity across different DEXs, making it even harder for users to get a better trade execution.** All these inefficiencies point to the need for a more integrated solution to simplify and improve the DeFi trading experience.

This is where **PancakeSwapX** steps in—an upgrade to the PancakeSwap ecosystem. PancakeSwapX is designed to solve these pain points by introducing **gasless swaps**, a system that eliminates the need for users to manage gas fees, and by **aggregating liquidity from multiple sources** to locate users a **better execution price for their trades**. Moreover, PancakeSwapX includes **advanced protection mechanisms against MEV**, safeguarding traders from predatory practices.


## **Goals of PancakeSwapX**

PancakeSwapX aims to make DeFi trading more **efficient, accessible**, and **secure** for all users.

1\. **Gasless Swaps**: Gas fees can be a significant barrier in DeFi, but PancakeSwapX tackles this issue with gasless swaps. Rather than paying gas fees upfront in native tokens, users simply sign and submit off-chain orders with no gas fee required .External Liquidity providers then fulfill these orders by submitting the required on-chain transactions and covering the gas costs, which are factored into the swap price. By bundling multiple orders, external liquidity providers can locate more competitive pricing. Additionally, users can avoid gas fees on failed or expired transactions, as these remain off-chain. By minimizing direct gas fee exposure for traders, PancakeSwapX fosters a more efficient and cost-effective trading environment.

2\. **Solve Fragmented Liquidity**: By aggregating liquidity from PancakeSwap’s AMM pools, other DEXs, and external liquidity providers, PancakeSwapX locates a better execution price with minimal slippage. 

3\. **Protect Against MEV Attacks**: PancakeSwapX shields traders from front-running and sandwich attacks by utilizing off-chain order signing and private transaction relays. This keeps trades hidden until execution, reducing the risk of manipulation.

4\. **Access a Wider Range of Tokens**: At launch, PancakeSwapX will support a broad selection of tokens, giving users access to trades even for tokens that do not have liquidity on PancakeSwap’s DEX. This opens up more options for diverse trading strategies.


*You can still incur some gas fees for token approvals or wrapping native tokens.  It's important to check the final price quotes to confirm.


**1.1 Technical Architecture: How PancakeSwapX Delivers Gasless Swaps and Better Execution Prices**


- **Off-chain order signing and on-chain execution**

PancakeSwapX introduces several upgrades that work together to enhance the trading experience. At the core of the platform’s architecture is the combination of off-chain order signing and on-chain execution. This approach allows users to submit signed trade requests off-chain. Once the order is signed, external liquidity providers pick it up—who execute the trade on-chain and pay the gas fees on behalf of the user. The gas cost is factored into the trade, allowing users to avoid upfront gas payments entirely.

By eliminating the need for users to hold native tokens for gas fees, PancakeSwapX lowers the barrier to entry for trading in DeFi. This makes it much easier for users, particularly beginners, to participate in decentralized trading without constantly managing multiple tokens for gas.



- **Liquidity aggregation model**

One of PancakeSwapX's standout features is its liquidity aggregation model. Liquidity is aggregated from PancakeSwap’s AMM pools, external DEXs, and external liquidity providers, locating users a more favorable execution price for their trades.

In traditional DEX setups, users are often limited to the liquidity available on that specific platform, leading to slippage, especially for larger trades or tokens with less liquidity. PancakeSwapX addresses this by** constantly evaluating liquidity across different sources and routing trades dynamically to achieve a better execution price. 

This means that users benefit from the deep liquidity in PancakeSwap’s native pools and the added liquidity from external sources, creating a more efficient and cost-effective trading environment.


**1.2 How PancakeSwapX and AMMs Work Together to Optimize Trading**

When a user initiates a trade on PancakeSwap, the platform evaluates available liquidity from various sources, including PancakeSwap’s AMM, other DEXs, and external liquidity providers. This assessment is based on the token pair, trade size, and network conditions.

**If PancakeSwapX has liquidity that locates a better execution price, the platform will automatically route your trade there**. At launch, PancakeSwapX will not charge trading fees for selected pairs and offer gasless swaps. Traders simply need to sign an off-chain order, while external liquidity providers already cover the gas fees in the trades, ensuring a seamless transaction process. Failed or expired orders remain off-chain, meaning there are no gas fees for trades that failed to route through PancakeSwapX.

If liquidity from PancakeSwapX is unavailable, your trade will not be routed through it. Instead, our platform will automatically search for a better execution price through our standard AMM pools, where standard PancakeSwap fees will apply.


### **PancakeSwapX and the Future of DeFi**

PancakeSwapX marks a significant leap forward in decentralized trading. By solving key issues like high gas fees, fragmented liquidity, and MEV exploitation, PancakeSwapX is redefining what users can expect from a decentralized exchange. Our ability to provide **gasless swaps**, **liquidity aggregation**, and **dynamic routing through AMM pools** and external sources enables traders efficiency and cost-effectiveness that is rarely seen in DeFi.

**Welcome to the future of DeFi. Welcome to PancakeSwapX.**




#### **PancakeSwapX Directory**

- [**Introducing PancakeSwapX: Zero-Fee & Gasless Swaps on Ethereum and Arbitrum**](https://blog.pancakeswap.finance/articles/introducing-pancake-swap-x-zero-fee-and-gasless-swaps-on-ethereum-and-arbitrum)
- [**Why PancakeSwapX is the Upgrade DeFi Traders Have Been Waiting For**](https://blog.pancakeswap.finance/articles/why-pancakeswapx-is-the-upgrade-defi-traders-have-been-waiting-for) 
- [**Getting Started with PancakeSwapX: A Beginner’s Guide**](https://blog.pancakeswap.finance/articles/getting-started-with-pancakeswapx-a-beginner-s-guide)
- [**PancakeSwapX’s Liquidity Aggregation: Benefits and Implications**](https://blog.pancakeswap.finance/articles/pancakeswapx-s-liquidity-aggregation-benefits-and-implications)
- [**The Mechanics of Gasless Swaps: How It Works in PancakeSwapX**](https://blog.pancakeswap.finance/articles/the-mechanics-of-gasless-swaps-how-it-works-in-pancakeswapx)
- [**MEV Protection: Safeguarding Your Trades using PancakeSwapX**](https://blog.pancakeswap.finance/articles/mev-protection-safeguarding-your-trades-using-pancakeswapx)

PancakeSwapX is designed to solve these pain points by introducing gasless swaps, a system that eliminates the need for users to manage gas fees, and by aggregating liquidity from multiple sources to locate users a better execution price for their trades.

 Why PancakeSwapX is the Upgrade DeFi Traders Have Been Waiting For

PancakeSwapX elevates your trading experience with gasless swaps, liquidity aggregation for better execution prices, minimal slippage, and zero PancakeswapX trading fees on over 150 tokens for a limited period at launch. Starting on Ethereum and Arbitrum, PancakeSwapX locates efficient execution and seamless trading across these networks. Let’s dive into your essential guide for onboarding with PancakeSwapX. 


## **View the List of Tokens Supported by PancakeSwapX on Ethereum and Arbitrum at Launch:**

Explore the lists below to discover the available tokens, including popular ones like ETH, ARB, USDC, USDT, DAI, BTC, LINK, STG, and ZRO—all available from the start. For the complete list, simply head to "Manage Tokens" on the PancakeSwap Swap page. And stay tuned—more tokens are coming soon!

 
**Token List On Ethereum**

[https://tokenlists.org/token-list?url=https://tokens.pancakeswap.finance/pancakeswap-eth-mm.json](https://tokenlists.org/token-list?url=https://tokens.pancakeswap.finance/pancakeswap-eth-mm.json) 

**Token List On Arbitrum**

[https://tokenlists.org/token-list?url=https://tokens.pancakeswap.finance/pancakeswap-arb-mm.json](https://tokenlists.org/token-list?url=https://tokens.pancakeswap.finance/pancakeswap-arb-mm.json) 

## **Step-by-Step Guide: How to Make Your First Trade on PancakeSwapX**


## 1. **Check PancakeSwapX Settings**

1.1 Visit Swap page on Ethereum or Arbitrum PancakeSwap. Open the settings modal by clicking the settings icon on the Swap page. 

![image13.png](https://sgp1.digitaloceanspaces.com/strapi.space/dd4a2e6dc015ab6fa00f06a2a038754f.png)

1.2 Select *Customize Routing* to view routing preferences.

![image9.png](https://sgp1.digitaloceanspaces.com/strapi.space/b1ead379bd17989a0dd2fad1a1537521.png)

1.3 Check that the PancakeSwapX switch is on for trade routes

![image7.png](https://sgp1.digitaloceanspaces.com/strapi.space/483525d4aae034b86e8dc524f6e55950.png)

Once confirmed, return to the main Swap page. If PancakeSwapX locates a better execution price, PancakeSwap will automatically route your trade there. In the Route section, you'll see an indicator showing zero PancakeSwapX trading fees.

*Note: PancakeSwapX availability depends on the input/output tokens, trade size, and network. If PancakeSwapX is active, it will be highlighted in the **Route** section. If PancakeSwapX is unavailable, the swap will be routed through standard AMM liquidity pools, and *standard PancakeSwap fees will apply. Be sure to verify the fee structure before confirming your trade. 


## 2. **Submit an Order**

**2.1** Click **Swap** to initiate your trade.

![image4.jpg](https://sgp1.digitaloceanspaces.com/strapi.space/967a5604970d4dd4c60e05878ea73395.jpg)

**2.2** Verify all parameters in the **Confirm Swap** modal. Once confirmed, click **Submit Order**.

![image6.png](https://sgp1.digitaloceanspaces.com/strapi.space/1e5de1c7bc1dc7cf061119d87dd63592.png)

**2.3** Approve the input token if prompted by your wallet

![image10.png](https://sgp1.digitaloceanspaces.com/strapi.space/bb160f672c9eb83cb6f59038a1770c48.png)
*Please note that you can still incur some gas fees for token approvals or wrapping native tokens.*

**2.4** When prompted, simply sign the order in your wallet. No gas fees or on-chain transactions are required at this stage, as the gas cost is already built into the trade price.

![image5.png](https://sgp1.digitaloceanspaces.com/strapi.space/03f1cdde6168f2834501307e22903b9b.png)

**2.5** Monitor the progress bar that appears once the order is submitted. You can view details by clicking **Order** Details or closing the modal while the order fills in the background.

![image16.png](https://sgp1.digitaloceanspaces.com/strapi.space/005948feb81f693ad2c094d1de0cad79.png)


**Note:**
 
*1. PancakeSwapX orders may take up to 2 minutes for external liquidity providers to fill.*

*2. You can still incur some gas fees for token approvals or wrapping native tokens.  It's important to check the final price quotes to confirm.*

## 3. **Track Your Order Status**

**3.1** Click the **History** icon on the swap card to view your list of orders. 

![image2.png](https://sgp1.digitaloceanspaces.com/strapi.space/2d8f513dc93a4cd9e0e6f17c2300ed91.png)

**3.2** Select a specific order to view detailed information on its progress.

Once the order is filled, you’ll see a green check mark, and the purchased tokens will be automatically transferred to your wallet.

![image12.png](https://sgp1.digitaloceanspaces.com/strapi.space/ec93b96649dbfa96a737eb93c17ef94a.png)


**Resubmitting Failed Orders on PancakeSwapX** 

If an order fails, click **"Retry"** to resubmit the swap. Failed or expired PancakeSwapX orders remain off-chain and do not incur any gas costs. If PancakeSwapX does not provide better execution pricing for the resubmission, your order will be routed through standard AMM liquidity pools, and standard PancakeSwap fees will apply. Be sure to verify the fee structure before confirming your trade.

![image1.png](https://sgp1.digitaloceanspaces.com/strapi.space/7e99bfaf71d7d147a55bb9bc0de02ef0.png)


## **Tips for New Traders**

**1. Take Advantage of Zero-Fee Trading at Launch:**

At launch, PancakeSwapX will not charge trading fees for over 150 tokens on Ethereum and Arbitrum for a limited period when your trade is routed through PancakeSwapX. If PancakeSwapX has a better execution price, your trade will be automatically routed there for maximum savings!

If your trade isn't routed to PancakeSwapX, it will be routed through traditional AMM pools, and standard PancakeSwap fees will apply. Therefore, check the fee structure before confirming your trade.

This zero-fee promotion for select pairs is only available for a limited time at launch. After this promotional period, standard PancakeSwapX fees may apply. Any future adjustments to fees will be communicated in advance.


**2. Avoid the Hassle of Native Gas Tokens**

With PancakeSwapX, you won’t need to hold multiple native gas tokens just to complete your trades. Instead, gas fees are seamlessly built into the trade price, so you won’t pay them separately. External liquidity providers cover the gas costs and include them in the swap price. For new users, double-check the total swap amount and confirm that you’re comfortable with the final trade price before proceeding.


**3. Shield Your Trades from Bot Attacks**

PancakeSwapX’s built-in MEV protection safeguards your trades from front-running and sandwich attacks. By signing off-chain orders, your transactions stay hidden until execution, preventing bots from interfering with your trades. Always monitor your order status, and if needed, retry failed orders—all while staying protected and avoiding extra gas costs.

Following the steps outlined in this guide, you'll be well-equipped to navigate the PancakeSwapX ecosystem and enhance your trading experience. Welcome to the future of decentralized trading—let’s explore the possibilities together.


#### **PancakeSwapX Directory**

- [**Introducing PancakeSwapX: Zero-Fee & Gasless Swaps on Ethereum and Arbitrum**](https://blog.pancakeswap.finance/articles/introducing-pancake-swap-x-zero-fee-and-gasless-swaps-on-ethereum-and-arbitrum)
- [**Why PancakeSwapX is the Upgrade DeFi Traders Have Been Waiting For**](https://blog.pancakeswap.finance/articles/why-pancakeswapx-is-the-upgrade-defi-traders-have-been-waiting-for) 
- [**Getting Started with PancakeSwapX: A Beginner’s Guide**](https://blog.pancakeswap.finance/articles/getting-started-with-pancakeswapx-a-beginner-s-guide)
- [**PancakeSwapX’s Liquidity Aggregation: Benefits and Implications**](https://blog.pancakeswap.finance/articles/pancakeswapx-s-liquidity-aggregation-benefits-and-implications)
- [**The Mechanics of Gasless Swaps: How It Works in PancakeSwapX**](https://blog.pancakeswap.finance/articles/the-mechanics-of-gasless-swaps-how-it-works-in-pancakeswapx)
- [**MEV Protection: Safeguarding Your Trades using PancakeSwapX**](https://blog.pancakeswap.finance/articles/mev-protection-safeguarding-your-trades-using-pancakeswapx)

PancakeSwapX elevates your trading experience with gasless swaps, liquidity aggregation for better execution prices, minimal slippage, and zero PancakeswapX trading fees on over 150 tokens for a limited period at launch.

Why Trade with the PancakeSwap Swap Bot?

How to Get Started:

PancakeSwap Telegram Bot Directory