PancakeSwap implements a new ‘metrics’ voting system and sunset vCAKE metric
Decentralized crypto exchange Pancake Swap has implemented a new voting system called “Metrics” and replaced the vCAKE metric with a new metric called “veCAKE” at sunset.
Your cake, your voice
Voting parameters and introducing veCAKE
More administrative power KK releases deep liquid sound reinforcements pic.twitter.com/GxHGHdIG4J
— PancakeSwap Everyone's Favorite DEX (@PancakeSwap) November 22, 2023
The system allows management tokens to vote for additional rewards to be distributed to specific pools, according to a Nov. 22 blog post.
PancakeSwap is the third largest decentralized exchange (DEX) in terms of total value locked (TVL) according to blockchain analytics platform Defillama. At the time of publication, it had a TVL of over $1.4 billion. Its governance token, CAKE, is distributed as a reward to users who provide liquidity. It is managed by a decentralized autonomous organization, CakeDAO, which consists of all CAKE containers.
With the new system, CAKE owners can vote every two weeks on which pools will receive additional rewards. However, to get the ability to vote, they have to lock their CAKE into a smart contract for a certain period of time. The more they lock their tokens, the more voting power they receive. According to the announcement, voting power will be measured by a metric called “veCAKE,” which replaces the previous “vCAKE” metric.
Related: PancakeSwap partners with Bril to add portfolio manager functionality
The exchange has eliminated the “syrup pool” reward system that previously allowed CakeDAO members to share their CAKE to earn an additional share of the exchange's fees. Instead, the surcharge will only be offered to users who currently have veCAKE.
According to the post, this change was implemented to increase the utility of the CAKE token, allowing only CAKE holders to influence which pools are more profitable:
“The beauty of this system is that it's unique, because only VKK owners can transfer CAKE releases to pools where you have a share, so your pools get more votes and you get more CAKE releases.”
To facilitate the transition from vCAKE to veCAKE, the exchange interface now allows a loaded CAKE to migrate to the new contract by pressing a button and confirming the transaction.
PancakeSwap isn't the only DEX adding new features in November. In the year On November 14, Uniswap released its Android mobile wallet, and SushiSwap began testing native Bitcoin exchanges on 30 networks on November 17.
