PancakeSwap has officially arrived on Solana, and it is not just another multichain deployment.
This launch introduces PancakeSwap’s v3 liquidity pool, built for capital efficiency and low-cost trading, now powered by Solana’s high-speed network.
Whether you are a trader looking for lower fees or a liquidity provider aiming to maximise returns, this integration brings new opportunities. But how does it actually work on Solana, and what sets it apart from other platforms? Let’s take a closer look.
PancakeSwap Integrates with Solana
With the deployment of PancakeSwap v3 on Solana, liquidity providers now have access to a more capital-efficient model using the CLAMM structure.
Unlike the traditional approach that spreads liquidity across all price points, this model allows users to define specific price ranges where their assets will be active.
This increases the depth of liquidity at those prices and potentially results in higher earnings for LPs without requiring more capital.
The new integration opens up trading pairs for Solana-native tokens such as BONK-SOL, PYUSD-USDT, EURC-USDC, CGPT-USDC, ROAM-USDC, and SKATE-USDC.
This selection gives LPs a way to back projects they are already familiar with while earning trading fees in return.
It also positions PancakeSwap as one of the few decentralised platforms offering both cross-chain flexibility and a Solana-native experience.
Another highlight is the wide range of available fee tiers. Liquidity providers can choose from 0.01% up to 4%, adjusting their exposure based on volatility and market conditions.
Those focused on stable pairs might prefer lower fees, while others targeting more volatile pairs may benefit from higher ones. This system allows LPs to match their strategies more closely to the assets they support.
Each liquidity position is represented as an NFT, which makes management and tracking easier.
These NFTs can be viewed, transferred, or withdrawn without interacting with a central system. It adds more transparency and control for LPs, especially those managing multiple pools.
PancakeSwap also offers up to 84% of trading fees to liquidity providers, depending on how much of their liquidity is actively used during trades.
While the system rewards efficient provisioning, LPs are reminded that there are still risks such as impermanent loss, especially during major price swings. Evaluating risk before providing large amounts of liquidity remains crucial.
Currently, PancakeSwap’s interface routes Solana-based swaps through an external protocol.
However, the liquidity added by LPs is still active and used during trades. Users will not see additional fees from PancakeSwap, and the interface remains consistent with what they already use on other chains.
New Improvements for Traders
For traders, the integration offers access to PancakeSwap’s well-known interface with the added benefits of Solana’s performance. The key change is how capital is distributed across price ranges, which leads to deeper liquidity and less slippage on most swaps.
This is particularly useful for those trading large amounts or those who value precision in price execution.
Trading fees can be as low as 0.01%, making it one of the most affordable ways to swap tokens on Solana. Whether you are executing frequent small trades or a few large ones, the lower costs can make a noticeable difference over time.
These fee tiers are determined by the liquidity pool structure and offer better cost-efficiency than many competing platforms.
Although the backend routing currently uses an external Solana-native protocol, the user experience is not affected. Swaps are still executed from the PancakeSwap interface, and the liquidity provided by v3 pools remains part of the transaction flow.
This means users will benefit from the deep liquidity without needing to switch platforms or wallets.
Minimal slippage is another major upgrade. Because of the concentrated liquidity model, trades can be executed closer to the expected price.
This matters most when trading tokens that typically have wider spreads or when executing trades in low-volume hours. The model creates a more stable and reliable trading experience overall.
There are also no extra fees imposed by PancakeSwap beyond what the external protocol charges.
This ensures a straightforward experience for users who are already used to the platform on Ethereum, BNB Chain, or other networks. Over time, more direct routing features may be introduced, but for now, the system functions well within this setup.
The familiar user interface, combined with Solana’s network speed and the new liquidity engine, creates a more efficient trading environment.
For those already trading on Solana or those looking to diversify into faster chains, this launch brings a proven product to a new ecosystem.
Conclusion
The launch of PancakeSwap v3 on Solana expands the platform’s reach while offering meaningful upgrades for both liquidity providers and traders. With concentrated liquidity, wide fee tier options, and NFT-based positions, LPs gain more control and potential yield.
At the same time, traders enjoy lower fees, better execution, and a stable interface without needing to adjust their usual habits.
While swaps are still routed through an external Solana protocol, the experience remains smooth and familiar. PancakeSwap’s arrival on Solana is not just a technical integration.
It adds a new layer of capital efficiency to one of the fastest growing ecosystems in decentralised finance.