PancakeSwap, a multi-chain decentralized exchange, is set to roll out vote-escrowed CAKE (veCAKE) and voting gauges, garnering over 98% support. The proposal aims to fortify governance influence, amplify liquidity, and elevate rewards for CAKE stakers.
In line with PancakeSwap’s Q4 roadmap, voting gauges empower veCAKE holders to dictate CAKE farm emissions. Picture it like this: veCAKE holders, analogous to shareholders, decide on CAKE distribution across liquidity pools. Their voting sway is tethered to their veCAKE balance, allowing them to shape reward allocations in diverse exchange pools.
What’s unique here is the ability for holders to delegate voting rights, akin to outsourcing decisions to external entities, potentially earning extra rewards. The veCAKE concept, originating from Curve Finance, involves users locking their tokens for a set period, receiving “ve” tokens in return, granting substantial voting rights and protocol rewards, and fostering long-term engagement.
The phased launch initiates with liquidity pools on BNB Chain, Ethereum, and Arbitrum, offering around 0.99 CAKE per block in rewards. Kitchen, the team behind PancakeSwap, retains a 40% voting share initially to ensure a smooth transition for liquidity providers. Their focus is on sustaining competitive returns, meeting partner arrangements, and gradually transitioning to a veCAKE governance system.
Voting concludes at 5:30 a.m. ET tomorrow, and if approved, the proposal will be implemented, launching veCAKE shortly after. PancakeSwap’s diversified DEX trading across various chains positions it as a dynamic player in the decentralized exchange landscape. This move follows their revenue-sharing initiative in July and the recent launch of a gaming marketplace, showcasing PancakeSwap’s commitment to innovation.