Proposal to Launch veCAKE on Polygon zkEVM

Proposal to Launch veCAKE Gauges System on Polygon zkEVM

As mentioned in our initial veCAKE proposal, we are launching veCAKE in phases, and are excited to share the next deployment - Polygon zkEVM!

Recap: Vote-Escrowed CAKE Overview

Here’s a quick recap of veCAKE’s utility:

1️⃣ Direct Gauge Emissions - veCAKE holders can directly impact how CAKE emissions are distributed within each pool, rewarding specific liquidity pools and projects. Rewards and gauge weights are determined through voting power, which will be determined by veCAKE balance.

2️⃣ Enable 3rd Party Protocols through Delegation - external protocols, such as veCAKE Managers, will compete to earn a share of veCAKE voting rights in order to direct CAKE emissions. veCAKE holders can opt to delegate their CAKE to potentially earn boosted rewards. However, direct participation is highly encouraged!

Inclusion of Polygon zkEVM in veCAKE Gauges System

Currently, the total rewards available for farm emissions on BNB Chain, Ethereum, Arbitrum, and zkSync Era is ~28,416 CAKE/day.

With the inclusion of Polygon zkEVM, the current Trading Allocation emission of ~125 CAKE/day directed towards Polygon zkEVM Farms will be added to veCAKE emissions.

As voted for previously, the Kitchen will retain a 40% voting share of total veCAKE votes currently allocated to the gauges system to vote for core pairs, such as ETH-USDC on Polygon zkEVM. This is to maintain the liquidity depth and volumes of these core pairs, which contribute significantly to CAKE buyback-and-burn.

Proposal Details

If this proposal closes with the community in favor of these recommendations, the proposed changes will be enacted and veCAKE will be launched shortly on Polygon zkEVM.