Analysis of Pancake TVL: Liquidity
The liquidity level of SWAP represents the willingness to retain market-making funds. Under the same mechanism, the more abundant the liquidity of the AMM platform, the better the overall trading experience of users, and it can capture users' trading behavior to the greatest extent. Of course, through mechanism improvements, some Swaps can provide lower slippage within a certain trading volume range, such as DODO that uses the PMM mechanism, and Uni V3 that supports custom liquidity market making intervals. However, most SWAPs with the largest trading volume on BSC still use the traditional AMM mechanism.
