PancakeSwap
Last updated
Last updated
PancakeSwap, the largest platform on BNB Chain, is a DEX facilitating cryptocurrency trading across various blockchain networks. It eliminates the necessity of intermediaries or conventional financial institutions. The platform's distinction lies in its core functionalities: enabling users to trade, vote, earn, and win through its services.
CAKE is the governance token of PancakeSwap.
veCAKE is a locked version of the CAKE token. When CAKE holders lock their tokens as veCAKE on PancakeSwap, they gain access to governance rights, voting power and passive income advantages. PancakeSwap provides multiple staking durations for locking CAKE as veCAKE, from a minimum of 7 days to a maximum of 4 years. The longer the locking period, the more significant the benefits, and possessing more veCAKE enhances these advantages.
🔹 Yield Boosting: One of veCAKE main utilities is to enable its holders to earn boosted yields when providing liquidity on PancakeSwap. The boosted emissions are proportional to the staking period duration and the amount of CAKE locked as veCAKE by users.
🔹 Governance Rights: veCAKE is fundamental for PancakeSwap's governance system. veCAKE holders can vote to influence the decision making and long-term development of PancakeSwap. The voting weight is proportional to the lockup period and the amount of CAKE locked by users. Longer lockup, more voting weight.
🔹 Directing CAKE Emissions / Earn Bribes: veCAKE holders can also vote to allocate CAKE emissions across different PancakeSwap pools.
🔹 Earning Rewards: Holding veCAKE on PancakeSwap allows users to earn rewards.
Cakepie has identified several areas where it can help provide a more efficient DeFi experience for users while supporting PancakeSwap's long-term development at the same time.
🔹 Liquidity providers cannot earn boosted yields without locking CAKE tokens.
🔹 Voters need to be locked up to 4 years to get considerable benefits.
🔹 CAKE holders cannot earn rewards without a lock up period.
