CIP #5 - Utilize zkSync and LayerZero Airdrops as Bribes for mCAKE/CAKE Pool

Abstract

This proposal seeks to use the zkSync and LayerZero airdrops received from PancakeSwap as bribes for the mCAKE/CAKE pool. The main objective is to maximize the benefits of these airdrops by incentivizing liquidity providers, ensuring a more robust and liquid market for mCAKE and CAKE tokens. This strategy aims to address the issue where direct distribution to mCAKE holders may result in unclaimed rewards due to higher gas fees than the actual airdrop amount.

Motivation

Cakepie received 108,279 zkSync tokens (ZK) and 796 LayerZero tokens (ZRO) for the zkSync and LayerZero airdrops from PancakeSwap. Distributing these airdrops directly to mCAKE holders is inefficient because the gas fees could surpass the value of the airdrops themselves, resulting in unclaimed rewards. By redirecting these airdrops as bribes for the mCAKE/CAKE pool, we can more effectively incentivize liquidity providers, thereby enhancing the liquidity and stability of mCAKE and CAKE tokens. This strategy aligns with Cakepie’s commitment to creating a vibrant and liquid ecosystem, ensuring that the airdrops are utilized in a manner that benefits the broader community.

Specification

Approval to use the zkSync and LayerZero airdrops received from PancakeSwap as bribes for the mCAKE/CAKE pool to incentivize liquidity providers.