Decentralized crypto trade PancakeSwap has applied a new voting system referred to as “Gauges” and sunsetted its vCAKE metric, changing it with a new metric referred to as “veCAKE.”
Your CAKE, Your Voice
Introducing Gauges Voting and veCAKE
More governance energy
Control CAKE emissions
Deeper liquidity
Vote Incentiveshttps://t.co/doaCruwMV6 pic.twitter.com/GxHGHdIG4J— PancakeSwapEveryone’s Favorite DEX (@PancakeSwap) November 22, 2023
The system allows governance tokenholders to vote for extra rewards to be distributed to explicit swimming pools, in accordance with a Nov. 22 weblog put up.
PancakeSwap is the third-largest decentralized trade (DEX) by way of complete worth locked (TVL), according to blockchain analytics platform DefiLlama. At the time of publication, it had over $1.4 billion TVL. Its governance token, CAKE, is distributed as a reward to customers who present liquidity. It is ruled by a decentralized autonomous group, CakeDAO, which includes all CAKE holders.
Under the new system, CAKE holders can vote on which swimming pools will obtain further rewards each two weeks. However, to realize the flexibility to vote, they need to lock their CAKE into a wise contract for a set interval. The longer they lock their tokens up, the extra voting energy they obtain. The announcement states that voting energy is measured in a metric referred to as “veCAKE,” which has changed the earlier “vCAKE” metric.
Related: PancakeSwap adds portfolio manager function in partnership with Bril
The trade has additionally eradicated its “syrup pool” reward system, which beforehand allowed members of CakeDAO to stake their CAKE to obtain an extra share of the trade’s charges. Instead, the extra charges will now solely be given to customers with veCAKE.
According to the put up, this alteration was applied to extend the utility of the CAKE token, permitting solely CAKE holders to affect which swimming pools are most worthwhile:
“The beauty of this system lies in its exclusivity, as only veCAKE holders can channel CAKE emissions towards the pools where you have stakes, earning additional CAKE emissions as their pools garner more votes.”
To facilitate the transition from vCAKE to veCAKE, the trade’s interface now permits staked CAKE to be transferred into the new contract by pushing a button and confirming the transaction.
PancakeSwap isn’t the one DEX including new options in November. On Nov. 14, Uniswap released an Android version of its cell pockets, and SushiSwap started testing native Bitcoin swaps throughout 30 networks on Nov. 17.
