Proposal for Adjustments to Farm Rewards

Proposal for Adjustments to Farm Rewards

Firstly, these adjustments do not reduce CAKE rewards to the Trading Allocation (and therefore farms) – the per block allocation to the Trading Allocation will remain at ~1.88 CAKE/block.

Importantly, the purpose of this proposal is to redirect CAKE rewards given to farms that are underperforming and give them to farms that are providing the most value.

By boosting APRs for higher-performing farms, we are able to encourage higher volume and liquidity, ultimately leading to greater trading fee revenue and therefore CAKE burns.

This allows us to ensure that CAKE emissions are distributed in a sustainable and beneficial manner.

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

With the above in mind, we're proposing to adjust CAKE rewards on the farms mentioned below. Rewards will be redistributed from farms with reduced multipliers to farms with increased multipliers - often on their direct V3 counterparts. Pancakeswap’s V3 deployment is significantly more flexible, enabling a similar level of trading experience for swappers and earning potential for LPs while taking advantage of greater capital efficiency. This will also give us increased capacity to establish Syrup Pool/Farm arrangements with more partner projects and bootstrap additional liquidity for the most highly traded pairs.

We also request for flexibility in the fee tier of the proposed v3 farms, which would be adjusted, as appropriate, to optimize liquidity.

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, unique token holders on BNB Chain, etc.

Farms with Increased Multipliers

LP	Current Weight	New Weight	Change
DOGE-BNB (V3)	0	3	+3
OLE-USDT (V3)	0	1	+1
WMX-USDT (V3)	0	3	+3
DAR-BNB (V3)	0	0.5	+0.5

Farms with Reduced Multipliers

LP	Current Weight	New Weight	Change
OLE-BUSD (V2)	0.4	0.2	-0.2
WMX-BUSD (V2)	2	1	-1
DOGE-BNB (V2)	1.5	0.5	-1
DAR-BNB (V2)	1	0.5	-0.5
TUSD-BUSD (V2)	0.2	0	-0.2
UNI-BNB (V2)	0.5	0	-0.5
METIS-BNB (V2)	0.6	0	-0.6
KRS-BUSD (V2)	0.2	0	-0.2