Proposal for Adjustments to Farm Multipliers
Proposal for Adjustments to Farm Multipliers
Firstly, these adjustments do not reduce CAKE rewards to the Trading Allocation (and therefore farms) – the per block allocation to the Trading Allocation will be unchanged at ~2.11 CAKE/block as of proposal posting.
Importantly, the purpose of these proposals is to redistribute CAKE rewards given to farms that are underperforming and give them to farms that are providing the most value.
By redistributing farm rewards from the farms mentioned below, APRs for all other performing farms will be boosted, enabling a more positive environment for increased trading.
This ultimately leading to greater trading fee revenue and therefore CAKE burns, optimizing how the platform utilizes the Trading Allocation.
This allows us to ensure that CAKE emissions are distributed in a sustainable and optimal manner.
💡Refresher💡: We recently streamlined our tokenomics – structuring our emissions by function, rather than product –, and Farm Rewards are part of the Trading Allocation now. Read more here.
Example of Adjustment
(Figures are for illustration purposes only.)
Over a certain time period,
- Under performing farm receives 1x (10 CAKE)
- High performing farm receives 1x (10 CAKE)
Total Amount of CAKE distributed to farms: 20 CAKE
After 1x multiplier removed for under performing farm,
- Under performing farm receives 0x (0 CAKE)
- High performing farm receives 1x (20 CAKE)
Total Amount of CAKE distributed to farms: 20 CAKE (no change)
Adjustment Details
So, with the above in mind, we're proposing to reduce CAKE rewards on the farms mentioned below, which will mean those rewards will be distributed back across all other existing farms, in addition to giving us more capacity to add more new Syrup Pool/farm combos etc.
The reason the below farms have been highlighted is due to their low ranking on our performance index which ranks each project using metrics like their reward multiple, average daily volume, 14-day volume, unique token holders on BNB Chain etc.
| LP | Current Weight | New Weight | Change |
|---|---|---|---|
| CAKE-BNB | 350 | 325 | 25 |
| BUSD-BNB | 100 | 95 | 5 |
| BTCB-BNB | 20 | 19 | 1 |
| BTCB-BUSD | 20 | 19 | 1 |
| CAKE-BUSD | 20 | 19 | 1 |
| ETH-BNB | 20 | 19 | 1 |
| CAKE-USDT | 15 | 10 | 5 |
| WOM-BUSD | 10 | 5 | 5 |
| BTCB-ETH | 5 | 4 | 1 |
| ETH-USDC | 5 | 4.5 | 0.5 |
| KRS-BUSD | 5 | 0.2 | 4.8 |
| MGP-BUSD | 5 | 3 | 2 |
| RACA-BUSD | 5 | 1 | 4 |
| WMX-BUSD | 5 | 3 | 2 |
| ARENA-CAKE | 2 | 1.5 | 0.5 |
| BTT-BUSD | 2 | 0.2 | 1.8 |
| SFUND-BNB | 2 | 1.5 | 0.5 |
| ALPACA-BUSD | 1 | 0.5 | 0.5 |
| APX-BUSD | 1 | 0.2 | 0.8 |
| AXS-BNB | 1 | 0.5 | 0.5 |
| C98-BNB | 1 | 0.5 | 0.5 |
| CHESS-USDC | 1 | 0.2 | 0.8 |
| CHR-BUSD | 1 | 0.3 | 0.7 |
| GAL-BNB | 1 | 0.5 | 0.5 |
| GQ-BUSD | 1 | 0.5 | 0.5 |
| HFT-BUSD | 1 | 0.5 | 0.5 |
| METIS-BNB | 1 | 0.7 | 0.3 |
| OLE-BUSD | 1 | 0.2 | 0.8 |
| PEEL-BUSD | 1 | 0.2 | 0.8 |
| SANTOS-BNB | 1 | 0.2 | 0.8 |
| SPS-BNB | 1 | 0.2 | 0.8 |
| TRX-BUSD | 1 | 0.5 | 0.5 |
| TUSD-BUSD | 1 | 0.2 | 0.8 |
| UNI-BNB | 1 | 0.5 | 0.5 |
| WIN-BUSD | 1 | 0.2 | 0.8 |
| XVS-BNB | 1 | 0.5 | 0.5 |
Off-Chain Vote
✅ Yes, make the adjustments!
167.03M CAKEVOTE97.6%
❌ No, don't make the adjustments!
4.02M CAKEVOTE2.4%
Timeline
Feb 02, 2023Proposal created
Feb 02, 2023Proposal vote started
Feb 03, 2023Proposal vote ended
Oct 26, 2023Proposal updated