Ethereum Chain Market Maker Integration
PancakeSwap has integrated market makers on both Ethereum and Binance Smart Chain to help traders execute transactions at lower costs.
Beyond the Automated Market Maker (AMM) system, trades on PancakeSwap can now be routed to approved whitelisted market makers—but only if they offer better pricing than the current AMM rates. This routing is handled automatically by smart routing technology, ensuring users always get the best available price. Transactions will only be directed to market makers when they actively provide superior pricing; otherwise, trades default to the AMM.
How Market Makers Operate on PancakeSwap
Market makers interact with PancakeSwap in two primary scenarios:
Scenario 1: Existing AMM Liquidity Pool
If an AMM liquidity pool already exists for a token pair (e.g., WETH/USDC), PancakeSwap will compare quotes from both the AMM and market makers. The smart router then directs the trade to whichever source provides the best price at that moment.
Scenario 2: No Existing AMM Liquidity Pool
When no AMM pool exists, trades are automatically routed to market makers. However, project teams can still create new AMM pools later to collaborate in maintaining DEX liquidity.
Fee Structure
PancakeSwap charges zero fees to users for trades executed by market makers. However, whitelisted market makers pay PancakeSwap a 0.05% fee on their trading volume. For stablecoin pairs, this fee is reduced to 0.01%. Below is the fee breakdown:
| Transaction Type | Fee Charged to Market Makers | Cake Burn % | Team Treasury % |
|---|---|---|---|
| Non-stable pairs (e.g., ETH/USDC) | 0.05% | 80% | 20% |
| Stablecoin pairs | 0.01% | 80% | 20% |
Currently Supported Assets
Supported assets may expand or contract based on market maker participation.
Ethereum Chain:
- Major Assets: WETH, WBTC
- Stablecoins: USDT, USDC, DAI, BUSD
- Popular ERC-20 Tokens: MATIC, DYDX, CRV, LINK, APE, CVX, STG, LDO, SNX, RNDR, FET
Binance Smart Chain:
- Major Assets: BNB, ETH, BTCB
- Non-BNB Chain Tokens: ARB, OP
👉 Discover how market makers enhance your trading experience
Important Notes
- Order Execution Limits: Unlike AMMs, market makers may not fulfill arbitrarily large orders due to their liquidity constraints. Users should review quotes carefully.
- Market Maker Downtime: Market makers may pause quoting during major economic events or system upgrades, temporarily halting trading for affected tokens.
Frequently Asked Questions (FAQs)
Q: Will market maker integration expand to Aptos?
A: Potentially. Current focus is on Ethereum and BSC to optimize liquidity. Other chains may follow based on demand.
Q: How does PancakeSwap generate revenue without user fees?
A: Revenue comes from market maker commissions, which fund CAKE buybacks and burns.
Q: Can liquidity providers (LPs) still earn LP fees?
A: Yes. LPs continue earning 0.17% trading fees and CAKE farming rewards.
Q: Do market makers add liquidity to AMMs? Will APR decrease?
A: No. Market makers maintain separate liquidity, so AMM APR remains unaffected.
Q: I’m an LP on Ethereum PancakeSwap. Do I need to take action?
A: No changes required. Existing LP positions continue earning fees.
Q: How can I become a market maker?
A: PancakeSwap selects partners privately. Interested parties should contact the team via official channels.