The decentralized finance landscape has elegantly evolved, with myriad protocols surfacing from distinct sectors to cater to multifaceted user demands. At the heart of this evolution is innovation, propelling growth and continuously expanding the horizons of possibility. In sync with this expanding realm and a commitment to continuously drive forward this ever-evolving landscape, we are thrilled to announce our integration with PancakeSwap, the top platform on BNB Chain and one of the biggest protocols across DeFi. This collaboration has led to the creation of Cakepie, a new SubDAO introduced by Magpie, with the ambitious goal of enhancing the core functionalities of PancakeSwap’s new veCAKE design. Through this initiative, we aim to further the reach and impact of DeFi, opening up new possibilities for users and the broader community.
What is PancakeSwap?
PancakeSwap is a decentralized exchange (DEX) that operates across multiple blockchain networks, allowing users to conduct cryptocurrency trades without the need for middlemen or traditional financial institutions. As the biggest platform on BNB Chain, PancakeSwap is renowned for its three core features: trading, earning, and winning. Users can instantly swap assets, earn tokens by providing liquidity or staking in Syrup Pools, and take part in lotteries and games to win tokens or NFTs.
What is CAKE?
CAKE is the governance token for PancakeSwap. It has various functions, including providing rewards to users who supply liquidity. Users can lock their CAKE to amplify their yields and take part in PancakeSwap’s governance processes.
veCAKE
veCAKE represents a locked version of the CAKE token and is not tradable or transferable. To benefit from voting and revenue-sharing advantages, users must lock their CAKE as veCAKE within PancakeSwap.
Cakepie: A SubDAO for Stacking CAKE
Cakepie has been launched by Magpie, specifically to support the long-term development of PancakeSwap. The main focus of Cakepie is to accumulate CAKE tokens and lock them as veCAKE in order to gain enhanced yield benefits and governance power within the platform.
Cakepie offers CAKE holders an opportunity to earn enhanced CAKE rewards as passive income. It also provides cost-effective voting power to PancakeSwap voters and allows liquidity providers to enjoy higher APR% without the need to lock any of their CAKE tokens as veCAKE.
mCAKE
CAKE holders have the chance to maximize their rewards by converting their assets into mCAKE. Users can stake their mCAKE on Cakepie to earn an increased revenue share from the platform in the form of CAKE.
On Cakepie, when users convert their CAKE tokens to mCAKE, the protocol immediately locks the converted CAKE as veCAKE within PancakeSwap. This mechanism offers CAKE holders enhanced rewards through mCAKE. Additionally, it grants Cakepie governance capabilities and access to a higher APR% on PancakeSwap.
Due to Cakepie’s veCAKE holdings, liquidity providers have the convenience of depositing their assets on the platform and benefiting from increased rewards. This means there’s no requirement for them to individually lock their CAKE as veCAKE.
The voting power that Cakepie has accumulated through veCAKE is distributed among vlCKP holders, enabling them to participate efficiently in PancakeSwap’s governance. CKP, the governance token of Cakepie, can be locked as vlCKP, granting access to its benefits. Holders of Vote-Locked CKP can earn a share of the platform’s revenue and influence PancakeSwap’s governance, maximizing their rewards in the process. Users must wait 60 days for their vlCKP to be fully unlocked and converted back to CKP.
Cakepie Benefits for the PancakeSwap Ecosystem
- For CAKE holders: If you hold CAKE tokens, you have the option to convert them into mCAKE. By staking mCAKE you can earn a share of the revenue generated by Cakepie, which is distributed in the form of CAKE.
- For Liquidity Providers: Cakepie’s platform possesses veCAKE holdings, which enables it to offer boosted passive income to depositors. This means that even if you’re risk-averse, you can enjoy higher returns without having to lock CAKE or manage veCAKE personally.
- For PancakeSwap Voters: Cakepie offers a cost-effective way to acquire voting rights on PancakeSwap. By leveraging the veCAKE accumulated by Cakepie, users can buy CKP tokens and then lock them into Cakepie as vlCKP. This not only allows users to have a say in PancakeSwap’s governance decisions but also ensures they receive a higher revenue share. Additionally, Cakepie offers the advantage of a reduced lock-up period in relation to veCAKE.
The CKP Token
CKP is the governance and revenue-sharing token of Cakepie. CKP can be locked as vlCKP to earn revenue from the platform and simultaneously participate in the governance of both Cakepie and PancakeSwap.
vlCKP
Vote-Locked CKP, abbreviated as vlCKP, represents the locked form of the CKP token. When users choose to lock their CKP on Cakepie, they receive an equivalent amount of vlCKP at a one-to-one ratio.
- Governance rights: vlCKP allows users to engage actively in the governance of Cakepie. This enables them to play a role in shaping the platform’s future and its decision-making processes.
- Participation in PancakeSwap: Holding vlCKP enables users to partake in PancakeSwap’s governance. Since vlCKP holders have authority over the veCAKE amassed by Cakepie, they gain voting privileges in PancakeSwap’s decision-making process.
- Income Sharing: When users hold vlCKP, obtained by locking CKP, they can earn passive income through profit-sharing. A portion of the Cakepie’s proceeds is designated for vlCKP holders, promoting continued investment and involvement.
- Voting Incentives: Holders of vlCKP can receive benefits from PancakeSwap’s partners who are looking for governance votes to enhance their pool emissions by voting through the Cakepie bribery market.
Security
Cakepie prioritizes the security and confidence of its users. In line with our commitment to transparency and robustness, we’ve undertaken thorough audits by top-notch industry experts. To further enhance our platform’s security, we employ a rigorous multi-signature setup for all our smart contracts. Building on our dedication to safety, Magpie has successfully integrated with platforms such as Wombat Exchange, Pendle Finance, and Radiant Capital, accumulating ~100 million in TVL. With Cakepie, it’s our mission to provide the PancakeSwap community with an unparalleled, secure, and lucrative DeFi journey.
CAKE RUSH Coming Soon
Attention all CAKE holders! We are pleased to announce the upcoming launch of the CAKE RUSH. This event is specifically tailored to benefit participants who choose to convert their CAKE into mCAKE on Cakepie by offering a sweet % of the total CKP supply. Please make a note of this event in your calendars and look out for further details regarding the CAKE RUSH launch. This is an opportunity to enhance the value of your CAKE assets.
The strategic collaboration between Magpie and PancakeSwap, via Cakepie, is aimed at driving the progress of PancakeSwap and at the same time broadening the Magpie ecosystem. This integration is anticipated to boost governance participation, amplify passive income opportunities, and heighten user engagement, in addition to encouraging the lock-up of CAKE tokens, thus reinforcing the strength of the PancakeSwap ecosystem as a whole. There is an ongoing dedication to improving the user experience by offering a more optimized array of passive income options within a more streamlined and interconnected DeFi ecosystem.
About 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, providing prime opportunities for DeFi users.
