Proposal for Adjustments to Farm Rewards

As we continue to optimize CAKE rewards across all of our deployments, we are able to gradually lower the overall CAKE emission, while maintaining sufficient liquidity to facilitate a smooth trading experience. Ultimately, this enables us to contribute a greater amount of CAKE towards the weekly burn.

Given PancakeSwap’s positive market growth across our v3 deployments as well to keep our Farms’ APR competitive against other liquidity venues, this proposal aims to decrease CAKE emission to Farms across all chains.

The previous round of Adjustments to Farm Rewards increased the overall CAKE burn by approximately 1,150 CAKE per day with minimal impact to trading volumes. This proposal aims to decrease emissions and increase the overall CAKE burn by approximately 4,000 CAKE per day.

As time passes, this optimization will help to 1) improve the overall efficiency and spend of CAKE across Farms and 2) continue to make CAKE deflationary.

Adjustment Details

With the above in mind, we are proposing to apply the following adjustments:

1. Reduce Farm emissions by 12.5% across all 8 chains (BNB Chain, Ethereum, Aptos, zkSync, Base, Arbitrum, Linea, and Polygon zkEVM)
2. BNB Chain’s core Farms will have their CAKE emissions reduced by 17.5% instead (including: BNB-USDT, BNB-BUSD, BUSD-USDT, USDC-USDT, USDC-BUSD, CAKE-BNB, CAKE-USDT, BTC-BUSD, BTC-USDT, ETH-USDT, BTC-BNB, ETH-BNB, and BTC-ETH)
3. Direct all the reduced CAKE emissions to increase our weekly burn

The purpose of this adjustment is to further turn CAKE deflationary while keeping our Farms’ APR more or less unchanged.