Implementing a Points system through Pancake Bunnies for Enhanced Farming

I will start by looking at the big picture:

1. Cake wants to have liquidity, that’s a key goal for their business (The total Volume Locked).
2. Cake wants to have a strong burning rate, to be able to acheive a deflationary tokenomics model.
3. Every business that initiates an IFO on Pancake, wants to achieve 3 things a) Raise Funds, b)Growth of adoption, and c)Retaining their customers (to grow)

There are 25 Pancake Bunnies(PB) NFT types in this collection. We will adopt a points system that will be used to achieve the goals we mentioned above without sacrificing the tokenomics. We will use the most common PB as the baseline (Sleepy). This one has a total of 216,980. We will then give Sleepy 216,980 points, 1 point for every Sleepy NFT held. We will give every other PB type the same points, but with a different distribution, based on a weighted rarity system. For example, every Lottie NFT holder will get 12 points for every one they hold (Because it is 12x rarer than Sleepy). Same all the way up to The Baller, where every holder will get 5,166 points for every Baller held. The total points here will be 4,556,580. The good thing here is that it’s a points system, so this could scale if Pancake releases more NFTs in the future, using the same methodology I explained above.

Now, let us assume a new token wants to make an IFO on PC (lets call it Bazabizo Token). They will use the same public sale mechanism + Private sale (with Squads NFTs as an enabler). However, the problem here is that users dump the tokens right after the IFO for an immediate profit. Now, the Bazabizo business gets the initial funding, but they lose a lot of users (because they sold early). I know that PC offers farms for that token, but then because a lot of dumping is happening, the price is very volatile, and users remove the liquidity because they are afraid of impermanent loss. If we enable an accelerated returns Farm for this token based on points, everyone wins.

For example, we make an “Enhanced” farm for Bazabizo-BNB, and it yields 1% additional APY every week, until lets say 6 months. Users will need 1 point for every $1/week in that farm. So, if you put $10,000 in that pool and you have 50,000 points, you will be allowed to stay in there for 5 weeks, then auto-removed. You will get the LP tokens, that you could then use to farm in the ordinary pool. If this idea removed 10% of the selling pressure post IFO, then the Bazabizo business wins a lot of money! 10% less selling pressure could mean upto 50% price appreciation which means less impermanent loss, which means longer retention. On the other hand, if the token’s price is doing well, users in the “Enhanced” farm will be tempted to buy more PBs to get more points to stay in that Enhanced farm. Once users leave the enhanced farm, they keep their points always. Lastly, there are a lot of users who hold PB NFTs but they don’t participate in the IFO, they could then be tempted to buy the token to get into the Enhanced Farm. There are more than 200,000 holders of PB NFTs, that’s the best marketing for free a company like Bazabizo could have.

The incremental yield given through the Enhanced Pool, shouldnt be large for PC. Its a maximum of ~$4.5M farm for 1 week at 1% incremental (in average, according to the total number of points as mentioned earlier). This shouldn't be more than ~$10K for every IFO (Happy to elaborate offline). On the other hand, if users like a certain Enhanced Pool, and then a new IFO is concluding, they will either leave the enhanced Farm (that they like) or buy more PB NFTs to participate in the Enhanced Farm for the new IFO. This will create volume. This mechanism, will create more volume for PB NFTs which reflects Cake burning. Simple Maths, every point costs ~$5 (the cost of Sleepy). So, if demand for the Enhanced Pool is increased to additional 500K points. That should reflect at least $2.5M trading volume no the PB collection, 2% of that is burned. Thats $50K! This is also a flywheel effect. The more Enhanced pools there is, the more users will buy PBs to enter, this means further volume and this could be accelerated. Every successful Enhanced Farm could bring 10-20% price appreciation to every point (Sleepy as a baseline), which means the burning associated with volume increases linearly with that, and so on.

Ah, I forgot to say, that could be allowed for any given Farm, not only the newly formed IFOs. This could give tremendous added value.

Unfortunately, I am not allowed to add Excel sheets, that could've made it easier, but happy to do so offline.

Thanks for reading!