Proposal for New Updates to PancakeSwap Farm Auctions

Tl;dr

We are re-launching Farm Auctions!

To maintain our market competitiveness, and adjust Farm Auction parameters for maximum CAKE burn, we propose to re-launch Farm Auctions with the following changes (initial parameters in brackets):

• Minimum CAKE bid: 3,000 CAKE ➙ Flexible (7,000 CAKE)
• Community Farms duration: 8 days ➙ Flexible (10 days)
• Multiplier: 0.5x ➙ Flexible (6x, 2x, and 1x for the top 3 winners respectively)
• Type of Community Farms: Flexible (V3 Farms of 1% fee tier)
• Number of winners: Flexible (3 winners)
• Bidding time: 1 hour (No change)
• Frequency of Farm Auctions: 3 weeks ➙ Flexible (2 weeks)

What are Farm Auctions?

Farm Auctions are a highly effective mechanism to increase project volume and draw in organic traffic/users. This will not only boost project token liquidity right away, but it also allows liquidity providers to farm CAKE at a high APY. Most importantly, the winning CAKE bids from Farm Auctions will be burned, accruing value to all CAKE holders.

Why change?

It has been some time since our last Farm Auction. To kick-start this product again, we require flexibility in some of the parameters so that we can make quick adjustments if necessary. This increases our likelihood of success as we can adapt quickly to ever-changing conditions, ultimately optimizing value accrual to CAKE holders.

We are restarting Farm Auctions with these selected parameters based on the current market conditions:

• Increasing the minimum bid to 7,000 CAKE to maximize the value of CAKE burn
• Increasing the Community Farms duration to 10 days to increase attractiveness for projects
• Increasing the Farm multipliers to maintain similar levels of CAKE incentives as before (due to reduced overall CAKE emission to Farms)
• We propose V3 Community Farms as they are more capital efficient than V2 pairs
• We propose a 1% fee tier to maximize trading fees and LP APR, increasing CAKE burn and attracting more LPs to winning Farms

What is the process of Farm Auctions?

How do project teams win the Farm Auctions?

Once every two weeks, there will be a Farm Auction. Three v3 Community Farms of 1% fee tier (6x, 2x, and 1x Multiplier), each lasting for 10 days, will be available for projects to bid on.

To win a Community Farm for their token, project teams need to bid enough CAKE to finish in the top 3 positions by the end of the Auction period, with the highest bidder winning the highest multiplier Farm, and so on.

The 3 winning projects' CAKE token contributions will be accepted as payment and burned in the following CAKE burn.

For project teams outside of the top 3 positions, they will be able to claim their CAKE back and try again in the next round of Farm Auctions.

For a summary of our Farm Auctions product, please visit our Docs page here. Interested projects can apply for Farm Auctions here or reach out to @PancakeSwapBD on Telegram if they have any queries.