PancakeSwap

Concentrated liquidity LP strategies on PancakeSwap V3

What this yield is

• Protocol: PancakeSwap V3 (Concentrated Liquidity AMM)
• Networks: BNB Chain, Ethereum, Base, Arbitrum, Monad, Linea
• Receipt token: PancakeSwap LP token (e.g., USDT-USDC LP)
• Rewards: Trading fees (fee tiers: 0.01%, 0.05%, 0.25%, 1%)

PancakeSwap V3 uses concentrated liquidity, allowing LPs to allocate capital to specific price ranges for improved capital efficiency and higher fee generation when trading within those ranges.

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How it works

1. Add liquidity

   Deposit an asset pair into a PancakeSwap V3 pool, optionally setting your price range

2. Receive LP token

   Get an LP share token representing your underlying position

3. Earn fees

   Collect trading fees when the market trades within your range

4. Remove liquidity

   Redeem the LP token to receive underlying assets plus earned fees

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Required inputs

Parameter	Description
yieldId	The specific PancakeSwap LP yield ID
address	User’s wallet address
amount	Amount to deposit

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Pending actions

CLAIM_REWARDS

Earned yield accrues to a rewards balance. Use the CLAIM_REWARDS pending action to claim these rewards to the user’s wallet.

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Key considerations

Concentrated liquidity & range behavior

In-range: When the pool price is inside your configured range, the position earns trading fees normally.

Out-of-range: When the price moves outside, the position stops earning and becomes one-sided (100% token A or token B).

Range management

Users can set narrow or wide price ranges. Narrower ranges generate higher APR but require more active management and are more likely to go out of range. The price range can only be adjusted by removing and re-adding liquidity.

Impermanent loss

LPs are exposed to impermanent loss. Concentrated liquidity can increase IL magnitude for tight ranges during strong directional price moves.

Fee tiers

Pools have different fee tiers (0.01%, 0.05%, 0.25%, 1%). The fee tier is visible in the yield name and affects both LP earnings and swap costs.

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Example flow

Get yield metadata

curl --request GET \
  --url https://api.yield.xyz/v1/yields/ethereum-pcs-v3-usdc-weth-0x1ac1a8feaaea1900c4166deeed0c11cc10669d36-500-pancake-lp \
  --header 'accept: application/json' \
  --header 'x-api-key: <API_KEY>'

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Yield IDs by network

Ethereum

Yield ID	Pool
ethereum-pcs-v3-usdc-weth-...-500-pancake-lp	USDC/WETH 0.05%
ethereum-pcs-v3-weth-usdt-...-500-pancake-lp	WETH/USDT 0.05%
ethereum-pcs-v3-usdc-usdt-...-100-pancake-lp	USDC/USDT 0.01%
ethereum-pcs-v3-wbeth-weth-...-500-pancake-lp	wBETH/WETH 0.05%
ethereum-pcs-v3-cake-usdc-...-2500-pancake-lp	CAKE/USDC 0.25%

BNB Chain

Yield ID	Pool
binance-pcs-v3-usdt-wbnb-...-100-pancake-lp	USDT/WBNB 0.01%
binance-pcs-v3-eth-wbnb-...-500-pancake-lp	ETH/WBNB 0.05%
binance-pcs-v3-btcb-wbnb-...-100-pancake-lp	BTCB/WBNB 0.01%
binance-pcs-v3-cake-wbnb-...-2500-pancake-lp	CAKE/WBNB 0.25%
binance-pcs-v3-sol-wbnb-...-500-pancake-lp	SOL/WBNB 0.05%

Base

Yield ID	Pool
base-pcs-v3-weth-usdc-...-100-pancake-lp	WETH/USDC 0.01%
base-pcs-v3-weth-cbbtc-...-100-pancake-lp	WETH/cbBTC 0.01%
base-pcs-v3-usdc-cbbtc-...-500-pancake-lp	USDC/cbBTC 0.05%
base-pcs-v3-eurc-usdc-...-100-pancake-lp	EURC/USDC 0.01%
base-pcs-v3-usdc-usdt-...-100-pancake-lp	USDC/USDT 0.01%

Arbitrum

Yield ID	Pool
arbitrum-pcs-v3-weth-usdt-...-100-pancake-lp	wETH/USDT 0.01%
arbitrum-pcs-v3-weth-usdc-...-500-pancake-lp	wETH/USDC 0.05%
arbitrum-pcs-v3-wbtc-usdc-...-500-pancake-lp	wBTC/USDC 0.05%
arbitrum-pcs-v3-usdc-usdt-...-100-pancake-lp	USDC/USDT 0.01%

Full yield IDs include the pool contract address. Query /v1/yields?provider=pancakeswap to get all available pools.

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See also

LPing Overview

LP strategies overview

Curve LPing

Curve liquidity pools