PanicSwap is a protocol on the Fantom Network that functions as an Automatic Market Maker (AMM). It is built on the audited Solidly code-base from Andre Cronje. The AMM supports stable and non-stable pairs, as well as multi-hop swaps that include both stable and non-stable pairs. The contract interface is designed to be intuitive and user-friendly.

One of the key innovations of PanicSwap is the incentivization of liquidity pairs with Yearn Finance's single asset yield bearing tokens, known as 'Y-Tokens'. Users can earn yield on their tokens in liquidity pairs and receive $PANIC rewards for providing liquidity. Earned $PANIC tokens are vested for 2 years, but can be claimed instantly with a 50% fee on the rewards. PanicSwap also implements a variable fee structure, similar to Uniswap, where different liquidity pairs have different swap fees.

$PANIC holders have the option to stake their tokens with no lockup period and earn fees generated by the protocol. Alternatively, they can choose to lock their tokens for 2 years, earning the aforementioned fees along with early exit fees paid by farmers who opt for early token release.