Proposal for Adjustments to Farm Rewards

Proposal for Adjustments to Farm Rewards

First, these adjustments do not reduce CAKE rewards to farms – the per block allocation to Farms and Lottery will remain at 3.75 CAKE/block.

Importantly, the purpose of these proposals is to redirect CAKE rewards given to farms that are underperforming and give them to farms that are providing the most value. In other words, redistributing farm rewards from the farms mentioned below will boost APRs for all other farms.

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

So, with the above in mind, we're proposing to reduce CAKE rewards on the farms mentioned below, which will mean those rewards will be distributed back across all other existing farms, in addition to giving us more capacity to add more new Syrup Pool/farm combos etc.

The reason the below farms have been highlighted is due to their low ranking on our performance index which ranks each project using metrics like their reward multiple, average daily volume, 14-day volume, unique token holders on BNB Chain etc.

LP	Current Weight	New Weight	Change
ALPACA-BUSD	1	0.5	0.5
ERA-BNB	1	0.5	0.5
XWG-USDC	0.5	0	0.5
ALICE-BNB	0.5	0.2	0.3
AXS-BNB	0.5	0.2	0.3
C98-BNB	0.5	0.2	0.3
CHR-BUSD	0.5	0.2	0.3
DAR-BNB	0.5	0.2	0.3
FROYO-CAKE	0.5	0.2	0.3
ALPHA-BNB	0.1	0	0.1
BCOIN-BNB	0.1	0	0.1
BNB-aBNBc	0.1	0	0.1
BP-BNB	0.1	0	0.1
FINA-BUSD	0.1	0	0.1
GMI-BNB	0.1	0	0.1
MIX-BUSD	0.1	0	0.1
RPG-BUSD	0.1	0	0.1