Proposal for Adjustments to Farm Rewards
Proposal for Adjustments to BNB Chain v3 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.
The previous round of Adjustments to Farm Rewards increased the overall CAKE burn by approximately 4,000 CAKE per day with minimal impact to trading volumes.
Given the traction and overall market share shown on our BNB Chain v3 deployments, this proposal aims to decrease emissions to the farms listed below and increase the overall CAKE burn by approximately 1,700 CAKE per day.
These optimizations will add up over the coming months to 1) improve the overall efficiency and spend of CAKE across farms and 2) redirect CAKE rewards towards the highest growth farms, ultimately accelerating the path towards ultrasound CAKE.
Adjustment Details
With the above in mind, we are proposing to adjust CAKE rewards on the farms mentioned below. Note, all other BNB Chain v3 farms will continue to earn the same level of rewards and even with these adjustments, the farms below will continue to have a healthy level of liquidity, volume, and APR.
The reason the below farms have been highlighted is due to their relative performance on metrics such as their average daily volume, 14-day volume, capital efficiency, and alternatives available.
BNB Chain v3 Farms with Increased Multipliers
| LP | Fee Tier | Current Multiplier | New Multiplier | Change |
|---|---|---|---|---|
| ETH-BNB LP | 0.05% | 3x | 6x | +3 |
| BTC-BNB LP | 0.05% | 5x | 7x | +2 |
| BTC-ETH LP | 0.05% | 0x | 2x | +2 |
| ETH-USDT LP | 0.05% | 1x | 3x | +2 |
BNB Chain v3 Farms with Decreased Multipliers
| LP | Fee Tier | Current Multiplier | New Multiplier | Change |
|---|---|---|---|---|
| CAKE-BNB LP | 0.25% | 168x | 140x | -28 |
| CAKE-USDT LP | 0.25% | 96x | 80x | -16 |
| BUSD-USDT LP | 0.01% | 38x | 28x | -10 |
| BUSD-USDC LP | 0.01% | 14x | 9x | -5 |
| BTC-BNB LP | 0.25% | 36x | 28x | -8 |
| ETH-BNB LP | 0.25% | 28x | 20x | -8 |
| BTC-ETH LP | 0.25% | 14x | 12x | -2 |
| USH-BNB LP | 1.00% | 5x | 2.5x | -2.5 |
BNB Chain v2 Farms with Decreased Multipliers
| LP | Current Multiplier | New Multiplier | Change |
|---|---|---|---|
| CAKE-BNB LP | 30x | 20x | -10 |
| CAKE-USDT LP | 1.6x | 1x | -0.6 |
| SABLE-BNB LP | 4x | 2x | -2 |
Off-Chain Vote
✅ Yes, make the adjustments!
27.57M CAKEVOTE96.1%
❌ No, don't make the adjustments!
1.13M CAKEVOTE3.9%
Timeline
Nov 13, 2023Proposal created
Nov 13, 2023Proposal vote started
Nov 14, 2023Proposal vote ended
Nov 14, 2023Proposal updated