Pancakeswap Introduces New Voting System and Token Metric to Enhance Rewards Distribution
Summary:
Pancakeswap, a prominent decentralized crypto exchange, has introduced a new voting system called "Gauges" that allows governance token holders to vote for extra rewards issuance to specific pools. The platform has also replaced its vCAKE metric with a new "veCAKE" metric. Pancakeswap has revamped its reward system, withdrawing the "syrup pool" scheme and assigning additional fees only to veCAKE holders. This amendment aims to enhance the functionality of the CAKE token and allow only token holders to determine the most rewarding pools.
The popular decentralized crypto platform, Pancakeswap, has introduced a new vote-based system known as "Gauges". This system enables individuals holding the governance token to cast a vote for additional rewards to be dispensed to specific pools, as announced in a blog post on November 22. Additionally, the exchange has phased out its vCAKE metric and introduced a new metric named "veCAKE".
Notably, Pancakeswap is the third biggest decentralized exchange in terms of total value locked (TVL), as per DeFiLlama, a blockchain analytics platform. The exchange currently holds over $1.4 billion in TVL at the point of this report. Its governance token, CAKE, is bestowed as a reward to users for supplying liquidity. The governance of the token lies in the hands of a decentralized autonomous organization, known as CakeDAO, which represents all CAKE holders.
Under the recently introduced system, those holding CAKE get to vote every fortnight on which pools will get extra rewards. However, to secure voting rights, CAKE holders must commit their tokens to a smart contract for a predetermined time duration. The longer the lock-up period, the more voting power they amass. The voting power is gauged via a metric called "veCAKE" which has replaced the previous "vCAKE" metric.
Moreover, the exchange has scrapped its "syrup pool" reward scheme that previously allowed CakeDAO members to stake their CAKE for an additional share of the exchange's fees. Moving forward, the surplus fees will be allocated only to those holding veCAKE. This transformation was initiated to boost the usefulness of the CAKE token, letting only token holders influence the most productive pools.
The switch from vCAKE to veCAKE has been streamlined by a new feature on the exchange's platform which enables staked CAKE to be shifted into the new contract through a quick button press and transaction confirmation.
It's worth noting that Pancakeswap isn't the sole DEX introducing innovations this November. On November 14, Uniswap launched the Android version of its mobile wallet, while Sushiswap started testing native Bitcoin swaps on 30 networks on November 17.
Published At
11/22/2023 4:49:15 PM
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