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 sections below detail the requested changes to decrease CAKE emissions to select BNB Chain v3 pools and outline the expected increase in CAKE burn.

The previous round of Adjustments to Farm Rewards launched a host of new v3 pools and increased the total burn by 200 CAKE per day.

Given the traction and overall market share shown on our BNB Chain v3 pool deployments, this proposal aims to decrease emissions to the pools listed below and increase the overall CAKE burn by approximately 1,440 CAKE per day.

These optimizations will add up over the coming months to 1) improve the overall efficiency and spend of CAKE across liquidity pools 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 two 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 pools 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.

v3 Farms with Decreased Multipliers

LP	Fee Tier	Current Multiplier	New Multiplier	Change
BNB-USDT LP	0.05%	170x	130x	-40
BUSD-USDT LP	0.01%	123x	86x	-37