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Liquidity Pools

PancakeSwap Liquidity Pools let users provide token liquidity through Exchange V3 non-fungible, concentrated liquidity positions or Exchange V2 LP tokens and earn trading-fee rewards, with additional CAKE earning opportunities through farms.
Category: Decentralised Exchange

Description

Liquidity Pools are PancakeSwap's liquidity-provision offering across Exchange V3 and Exchange V2. In V3, users create transferable non-fungible liquidity positions, choose a price range, and earn trading fees while their liquidity remains active and in range; they can manually claim fees and remove liquidity to redeem their funds. In V2, users receive LP tokens representing their share of a pool and receive a portion of trading fees. Liquidity providers may also use eligible farms to earn CAKE, and providing liquidity carries impermanent-loss risk.