PancakeSwap's V3 trading system utilizes a smart routing mechanism. By default, this system intelligently draws liquidity from multiple sources to execute your trades and find you the best possible price. These sources include V3 pools, V2 pools, StableSwaps (on BNB Chain), and specific AMM and Market Maker (MM) pools on both BNB Chain and Ethereum.
Beyond this automated process, you have significant control. You can customize your trading experience by manually selecting which liquidity sources to use and deciding whether to enable or disable advanced routing features like multi-hop and split paths.
Viewing Transaction Fees and Details
Before confirming any trade, it's crucial to understand the associated costs and how your transaction will be processed.
To see the exact fee amount for your current trade, look for the "Transaction Fee" section within the trade details panel. This will clearly display the cost of executing your swap.
To check which specific liquidity pools and fee tiers your transaction will route through, examine the "Routing Path" section. For a more granular, step-by-step breakdown of the entire path your tokens will take, click the magnifying glass icon next to it.
Customizing Your Liquidity Sources
You have the power to choose exactly where your trade finds liquidity. The "Customize Routing" interface allows you to manually enable or disable specific liquidity sources.
You can access this settings menu in two ways:
- Click on "Customize Routing" at the bottom of the routing path display.
- Click the settings (gear) icon on the swap interface, then select "Customize Routing" at the bottom of the menu.
By default, all available liquidity sources are enabled, allowing the smart router to find the best price across all of PancakeSwap. It is important to note that the router will not mix AMM pools and Market Maker (MM) pools within a single transaction. If a MM is used for your trade, it will not also route through an AMM pool.
If your custom settings become too restrictive, you can always click the "Reset" button in the top-right corner of the routing settings to return to the default configuration. For those looking to dive deeper into advanced trading strategies across various platforms, you can explore more strategies for broader market insights.
Setting Your Routing Preferences
Beyond selecting liquidity sources, you can further tailor your transaction's behavior using the options at the bottom of the "Customize Routing" menu.
Multi-Hop
- Enabled (Default): Allows trades to route through multiple intermediate pools to achieve the best possible price. For example, swapping Token A for Token C might optimally go through Token B (A->B->C).
- Disabled: Restricts all trades to direct pairs only. This can result in significantly worse prices (higher slippage) and may even cause transactions to fail if a direct pool lacks sufficient liquidity.
Split Path
- Enabled (Default): Allows a single large trade to be broken down and executed across multiple different routes. This is often used to minimize slippage on large orders by aggregating liquidity from several pools.
- Disabled: Forces the entire trade to be completed through a single route. For larger orders, this often leads to poor pricing and high slippage as it exhausts the liquidity in one pool.
If your current custom routing settings prevent a trade from being executed, a warning message will appear. You can click "Check your settings" to quickly jump to the customization menu or select "Reset to default" to immediately restore the optimal default configuration.
Frequently Asked Questions
What is PancakeSwap's smart router?
The smart router is an advanced algorithm that scans all available liquidity sources on PancakeSwap—including V3, V2, and StableSwap pools—to find the most efficient and cost-effective path for your token swap. It automatically aggregates liquidity to provide users with the best possible price.
Why would I disable certain liquidity sources?
You might disable a source for a specific reason, such as preferring a more proven pool or avoiding a pool with a fee tier that is not ideal for your trade size. However, disabling sources typically reduces price efficiency, so it's generally recommended to keep them all enabled.
What happens if I disable both multi-hop and split routing?
Disabling these advanced features severely limits the router's ability to optimize your trade. Your transaction will be forced to use a single, direct path, which will almost certainly result in a worse exchange rate, especially for larger trades or illiquid token pairs.
Is there a cost to using the smart router?
No, using the smart router itself does not incur an additional fee. You simply pay the standard trading fees associated with the liquidity pools your transaction routes through. The router's job is to find the combination of pools that results in the lowest overall cost for you.
Can my trade use both an AMM and a Market Maker?
No, the router will not combine AMM liquidity pools and Market Maker liquidity pools within a single transaction execution. A trade will be routed through one type of source or the other.
How do I know if my custom settings are causing a trade to fail?
The interface will display a clear warning message if your routing preferences are too restrictive to complete the transaction. It will offer you quick options to either review your settings or reset them to default. Always ensure you are getting the best possible execution for your assets by learning to view real-time tools and data.