PancakeSwap AMM vs Uniswap

PancakeSwap is the dominant DEX on BNB Smart Chain, using a Uniswap‑V2 style x*y=k invariant plus built‑in yield‑farming to bootstrap liquidity. V3 upgrades added concentrated liquidity ranges, multi‑tier fee levels and a position manager NFT similar to Uniswap V3. The protocol’s CAKE token follows an aggressive burn schedule funded by trading fees and IFO auctions.

Uniswap V3 pioneered concentrated liquidity ranges and multiple fee tiers, letting LPs choose custom price curves and earn up to 4000 × higher fee capital efficiency. It introduced NFTs to represent positions and a licence that restricts commercial forks for two years. As of 2025 V3 is deployed on more than 15 chains and retains over 60 % DEX market share by volume.