UpDeFi’s Contribution to PancakeSwap and Other DeFi Projects

An overview of how UpDeFi contributes to PancakeSwap and other projects.

The Importance of Liquidity Mining

PancakeSwap releases a large amount of CAKE every day to maintain its liquidity mining. This ensures that its Decentralized Exchange (DEX) can maintain sufficient Total Value Locked (TVL), which can provide traders with low slippage trading opportunities and attract traders to trade on PancakeSwap. Liquidity mining is the core of PancakeSwap’s DEX business; therefore, improving the efficiency of liquidity mining is the key to improving PancakeSwap’s business efficiency.

In fact, liquidity mining is still the core of attracting TVL and doing business for almost all DeFi projects to this day. Improving the efficiency of liquidity mining has thus become the core concern of all DeFi projects.

Capital Efficiency and UpDeFi


The rise of DeFi 2.0 stems from this pursuit of improving the capital efficiency. Many new protocols are trying to provide new solutions and it is the protocols that can propose effective solutions that will undoubtedly become the core of the future DeFi ecosystem.

In this case, UpDeFi proposes a new model to improve the capital efficiency of liquidity mining for other DeFi projects. Two weeks ago, UpDeFi launched and integrated several of PancakeSwap’s largest farms onto our platform. From the performance of the past two weeks, this model works quite well.

The model of UpDeFi for integrating PancakeSwap includes the following parts:

Yield-Enhancing Strategies

After users deposit the PancakeSwap LPs and CAKE to UpDeFi platform, UpDeFi will re-deposit these assets to the underlying mining pools of PancakeSwap to earn CAKE rewards. These CAKE earnings will not be returned to users directly, nor will they be sold for compounding, but will be returned to users through other methods described below. Users will be able to earn UP, the native token of UpDeFi directly.

Up Rewards Will be Linearly Released

The UP rewards obtained from each harvest will be linearly released to users within 60 days. This can reduce the selling pressure in the early growth period of UpDeFi, which is more conducive to growth.

Users Stake UP to Earn CAKE

The CAKE earnings in Part 1 will not be sold at all, but will be distributed to users who stake UP on UpDeFi platform. UpDeFi claims this will have no selling pressure on CAKE, and that the return for UP holders is also guaranteed.

Incentivizing the UP-CAKE Pool on PancakeSwap for Liquidity

This mode has several benefits for CAKE:

A. The UP-CAKE pool can lock a lot of CAKE.

B. UP is priced with CAKE, and the value of UP is tied to CAKE, which determines that UpDeFi’s benefits are aligned with CAKE.

C. If users want to buy UP, they need to use CAKE. If users use BNB or BUSD to buy CAKE, the price of CAKE will also increase at the same time.

Auto-Compounding Strategy, No Sell Pressure

The liquidity of UP is supported by UP-CAKE liquidity pool and does not require selling CAKE into BNB or BUSD. This means there will be no selling pressure on CAKE. In this way, it will not generate selling pressure on CAKE and also bring more benefits to UP users through compounding.

In summary, UpDeFi and UP tokens serve as a bridge that can increase the earnings of users who provide liquidity to PancakeSwap without generating selling pressure on CAKE. This improves the capital efficiency of PancakeSwap’s liquidity mining.

UpDeFi will continue to extend this model to the liquidity mining of other DeFi protocols, helping more DeFi protocols grow in the long term.

For more information about UpDeFi, visit the following links:






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Source : bsc.news

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