📍Introduction
How do Cakepie and PancakeSwap work together?
Cakepie
Cakepie is a state-of-the-art SubDAO created by Magpie to bolster the long-term sustainability of PancakeSwap. As a yield and veTokenomics service provider, Cakepie’s core mechanism involves locking CAKE tokens as veCAKE. This process allows Cakepie to secure enhanced yields and amplified voting rights within PancakeSwap, serving up as a Meta-Governance layer, offering prime opportunities for DeFi users.
PancakeSwap
PancakeSwap is one of the top protocols across DeFi and functions as a DEX that spans multiple blockchain networks. The platform enables users to execute cryptocurrency trades directly, bypassing the need for intermediaries or conventional financial institutions. PancakeSwap has implemented the veCAKE (Vote-Escrowed CAKE) system for its governance token, CAKE, enabling holders to lock their CAKE as veCAKE. By doing so, users get voting rights, a share of the platform's revenue, and higher APR% as liquidity providers. To maximize the benefits of veCAKE, it is necessary for users to lock their CAKE tokens up to 4 years.
As the biggest platform on BNB Chain, PancakeSwap is renowned for its three core features: trading, earning, and winning. Users can connect to PancakeSwap through different blockchains network to exchange their assets into another. The platform allows users to participate as liquidity provider with the potential to earn passive income.
Cakepie: Sweetening The Crypto Kitchen
Cakepie brings a solution that supports PancakeSwap to maximize its long term value. The protocol enables CAKE holders to earn passive income, provides PancakeSwap voters with cost-effective voting power, and allows liquidity providers to gain increased APR% without needing to lock CAKE tokens as veCAKE.
Cakepie offers CAKE holders the opportunity to earn substantial rewards by converting their governance tokens (CAKE) into mCAKE. Users can stake mCAKE on Cakepie to earn an enhanced revenue share from the platform in the form of CAKE tokens.
When users convert their CAKE into mCAKE, Cakepie automatically locks the converted CAKE as veCAKE within PancakeSwap. This mechanism enables CAKE holders to earn greater rewards through mCAKE, while also granting Cakepie voting rights and increased APR% as a liquidity provider within PancakeSwap.
Thanks to Cakepie's veCAKE holdings, liquidity providers can deposit their assets on the platform and earn increased CAKE rewards without having to lock any CAKE as veCAKE by themselves.
The voting power accumulated by Cakepie through its veCAKE holdings is shared among vlCKP holders, allowing them to participate in PancakeSwap's governance cost-effectively. CKP is the governance token of Cakepie, and it can be locked as vlCKP to access its benefits. Vote-Locked CKP holders can earn a share from the platform's revenue and influence PancakeSwap's governance efficiently while simultaneously maximizing their rewards. Users must start a 60-day unlock period to fully unlock vlCKP back to CKP.
How does Cakepie benefit PancakeSwap?
Boosted income for CAKE holders - CAKE holders have the option to convert their tokens into mCAKE, allowing them to receive a share of the revenue generated by Cakepie in the form of CAKE without the need to lock their assets.
Expanding a diverse user base - Risk-averse liquidity providers can achieve higher yields without the need of locking CAKE and holding veCAKE on their own. The veCAKE holdings of Cakepie allows the platform to automatically provide depositors with boosted passive income.
Reducing the voting barrier - Cakepie provides a cost-effective method for acquiring voting rights on PancakeSwap, facilitated by the veCAKE accrued by the platform. Users can purchase CKP tokens and lock them on Cakepie as vlCKP. This enables users to control the veCAKE accumulated by Cakepie, granting them the power to effectively influence PancakeSwap's governance and earn revenue` without being subject to a four-year lock-up period.