In their biggest modification proposal yet, PancakeSwap has optimized efficiency and allowed for prospective reductions to emissions.
PancakeSwap has proposed to adjust yield farming rewards to re-direct liquidity to key farms and remove the inefficient ones.
This is not the first adjustment the PancakeSwap team has initiated in its bid to add value to yield farming. But the current modification will see PancakeSwap commit to their largest wholesale changes to date.
The Pancake team officially announced a new initiative on July 31st via Twitter. The proposal has undergone the usual route of tracking votes cast by community members and will be completed by the 2nd of August, 20:30 UTC. At present, with over six million votes cast, a unanimous 97% are in favor.
To summarize the prospective changes:
36 Farms will be discontinued
20 Farms will have weight lowered
2 Farms will have weight increased
17.9 represents total weight returned to existing Farms
*A detailed breakdown of all changes is linked at the end of the article.
An important takeaway from these changes is that CAKE rewards are NOT removed, rather they are being redirected from underperforming farms to the most effective farms providing the most value.
Optimizing the Ecosystem
PancakeSwap has been conscious of getting the most out of its ecosystem through rewarding performance. The continuous close attention the team pays to increasing value underlines why they retain the title of largest decentralized exchange (DEX) on Binance Smart Chain.
Necessary steps to slow inflation have already been taken by reducing the amount of native token CAKE created. The singular aim of making deflation higher than emission via mechanisms built into PancakeSwap’s products, means they continue to optimize efficiency.
With regular token burns initiated, and available to view on the burn address, the team has been consistent in their efforts.
Other Deflationary Mechanics
At present, CAKE is also burned in the following ways:
0.05% of every trade made on PancakeSwap V2
100% of CAKE sent to the Dev address
100% of CAKE raised in IFOs
100% of CAKE spent on Profile Creation and NFT minting
20% of CAKE spent on lottery tickets
45,000 CAKE per day (historically assigned to the lottery) (The CAKE for this is generated by a farm – PID 31)
3% of every Prediction markets round is used to buy CAKE for burning
2% of every yield harvest in the Auto CAKE Pool
* To see the full Detailed Overview of Recent Re-Adjustment, please see the PancakeSwap Source.
What is PancakeSwap?
PancakeSwap is the leading decentralized exchange on Binance Smart Chain (BSC), with the highest trading volumes in the market. PancakeSwap runs on BSC, a blockchain with much lower transaction costs than Ethereum or Bitcoin. As a result, trading fees are lower than other top decentralized exchanges, and the protocol offers a secure place to farm yields thanks to their Syrup pools.
Founded in 2020, BSCNews is the leading media platform covering decentralized finance (DeFi) on the Binance Smart Chain (BSC). We cover a wide range of blockchain news revolving mainly around the DeFi sector of the crypto markets. BSCNews aims to inform, educate and share information with the global investment community through our website, social media, newsletters, podcasts, research, and live ask me anything (AMA). Our content reaches hundreds of thousands of global investors who are active in the BSC DeFi space.