Hello HODLers, Farmers and PancakeSwap users,
Yesterday I came across this tweet from PancakeSwap:
I was the eagerly waiting. The vote came out a few hours ago and is clearly a must see for any $CAKE HODLers
First of all $CAKE HODLers and PancakeSwap users should be aware that we live in a DeFi world where there is a competition for capital. Meaning that investors / Liquidity providers put their capital to work on a platform doing a risk/reward arbitrage.
Current CAKE emission and burns
PancakeSwap because of its TVL and very safe track record could probably attract capital at a lower APY than let's say CubDeFi which is a smaller project.
Nevertheless, if the yield difference between a Pool on PCS and CubDeFi is too high, LPs might want to take more risk because this risk is paying-off in terms of returns.
By lowering the emission rate, you lower the APY (at least in the short term). Or, you would have to have a higher $CAKE price in order to give the same APY to LPs.
This is something to consider because if APY drops too fast, capital will flee and this can find yourself in a vicious circle.
There is a very important vote concerning the $CAKE emission, so if you have some.
Go Vote !
The vote started today, August, 5th and will last until August, 12th
Here are the voting options:
- ❌ No change:
9 CAKE per block go to yield farms
Total emissions = 19 CAKE per block (including Syrup Pool)- 🔥 1 CAKE per block (11%) reduction to farm rewards:
8 CAKE per block go to yield farms
New total emissions = 18 CAKE per block (including Syrup Pool)- 🔥🔥 2 CAKE per block (22%) reduction to farm rewards:
7 CAKE per block go to yield farms
New total emissions = 17 CAKE per block (including Syrup Pool)- 🔥🔥🔥 3 CAKE per block (33%) reduction to farm rewards:
6 CAKE per block go to yield farms
New total emissions = 16 CAKE per block (including Syrup Pool)- 🔥🔥🔥🔥 4 CAKE per block (44%) reduction to farm rewards:
5 CAKE per block go to yield farms
New total emissions = 15 CAKE per block (including Syrup Pool)
At the moment it seems $CAKE HODLers strongly support the biggest Yield Farms Reduction of 4 CAKE per block. More than 90% of voting power is supporting this option.
I personally believe a lower reduction of 2/3 CAKE per block would have been better as the platform and token could have more time to adapt.
Nevertheless, this kind of vote is very positive for the platform as it shows the power of CAKE as a governance token and it also gives some light on the paltform through tweets or posts such as this one.
To conclude I am keeping my long CAKE position and might even increase it.
Full link to the CAKE EMISSION REDUCTION Vote
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