As the foremost veCAKE holder, Cakepie is committed to amassing CAKE tokens from PancakeSwap and removing them from circulation by locking them as veCAKE. This strategy enables our platform to access and utilize governance rights, voting privileges, and enhanced yields within PancakeSwap. It also offers seamless opportunities for passive income to CAKE holders through mCAKE and other participants across the PCS ecosystem. In pursuit of this goal, we are excited to announce the launch of CAKE RUSH #3.
The CAKE RUSH #3
The initiative focuses on encouraging CAKE holders on BNB Chain to convert their CAKE tokens into mCAKE, offering them CKP tokens as incentives to add additional value to their conversion process. Cakepie has set aside a generous pool of 20,000 vlCKP tokens as rewards for enthusiasts who partake in the conversion process during CAKE RUSH #3. This move is twofold: bolstering Cakepie’s long term development and offering participants a chance to enhance their passive income and CKP rewards.
How to Participate?
To take part, users must convert their CAKE tokens into mCAKE. Whenever mCAKE’s value is above 95% in relation to the price of CAKE, converting one CAKE gives one mCAKE. If mCAKE’s value falls below 95%, Cakepie will use the Smart CAKE Converter to buy mCAKE with CAKE at current market rates, giving participants a favorable amount of mCAKE based on its current market price to help keep mCAKE’s value stable.
If mCAKE’s value drops below 0.95 during the event, half of the converted CAKE will go through the Smart CAKE Converter, to help keep mCAKE’s price close to CAKE’s. Cakepie is offering 20,000 vlCKP as incentives for those who convert their CAKE into mCAKE. This opportunity lasts for five days.
The mCAKE Stability Vault
During the CAKE RUSH #3, users are encouraged to convert their CAKE tokens into mCAKE. The newly minted mCAKE will be automatically placed into the mCAKE Stability Vault. This action aims to attract long-term supporters of Cakepie while deterring short-term speculators. The mCAKE Stability Vault is specifically structured to reward those who contribute positively to the development of Cakepie and PancakeSwap with substantial rewards, focusing on rewarding genuine supporters over those seeking quick profits.
The CAKE RUSH #3 Reward Structure
The distribution of CKP rewards in CAKE RUSH #3 depends on the amount of CAKE converted by each participant. A bracketed reward structure ensures that as participants climb the conversion ladder, they unlock increasingly lucrative brackets. Participants have the option to carry out multiple transactions to convert more CAKE, enabling them to move up through the reward brackets and receive greater incentives. Note that CKP rewards will be distributed as vlCKP.
Brackets of Rewards
Example:
1. User A converts 1,000 CAKE
User A will receive:
- 0.012 CKP * 1,000 = 12 vlCKP plus at least 1,000 mCAKE (If the peg of mCAKE is lower than 95% in relation to the price of CAKE, Cakepie will use the Smart Converter, and the amount of received mCAKE will be higher.
2. User B converts 25,000 CAKE
User B will receive:
- 0.012 CKP * 1,000 = 12 vlCKP
- 0.013 CKP * 4,000 = 52 vlCKP
- 0.015 CKP * 15,000 = 225 vlCKP
- 0.018 CKP * 5,000 = 90 vlCKP
User B will receive a total of 379 vlCKP plus at least 25,000 mCAKE (The amount of mCAKE received will be higher if the mCAKE peg is below 0.95)
Receiving mCAKE Tokens
Participants engaging in CAKE RUSH #3 will find their mCAKE tokens promptly allocated within the mCAKE Stability Vault post-conversion. If the price of mCAKE is lower than 95% in relation to the price of CAKE at the moment of conversion, users will get +1 mCAKE in return, thanks to the Smart CAKE Converter.
Receiving vlCKP rewards
Upon converting CAKE, users participating in the CAKE RUSH #3 will receive 100% of their earned CKP rewards directly in the vlCKP Pool.
The primary goal of CAKE RUSH #3 is to reduce the overall number of CAKE tokens circulating while simultaneously enhancing the services offered by Cakepie. This strategy leads to increased yields and expanded voting power for participants within the PancakeSwap ecosystem.
Convert CAKE into mCAKE
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 governance power within PancakeSwap, serving up prime opportunities for DeFi users.
