PancakeSwap to distribute fee revenue to CAKE stakers

The PancakeSwap decentralized exchange announced that from August 9, CAKE token stakers will receive 5% of trading fees in the protocol.

The initiative applies to all v3 pairs with fee tiers of 0.01% and 0.05% — such assets account for around 80-90% of the exchange’s trading volume.

The reward will apply to stakers with fixed lockup periods and will be paid on a weekly basis.

“The distribution pool represents a sustainable model based on real yield and protocol growth. It guarantees that the value of CAKE will not be diluted, and adds the benefits of owning the token. Moreover, the solution will serve as a valuable tool for mitigating inflation,” explained PancakeSwap representatives.

The amount of the distribution depends on the amount of CAKE and the remaining time staking for users. The minimum lockup period to receive the bonuses is seven days.

In April 2023, the DEX introduced the third version of the protocol. It provides liquidity providers the ability to concentrate capital in certain price ranges, as implemented in Uniswap v3.

According to the developers, the total trading volume on PancakeSwap v3 has surpassed $12.5 billion. At the time of writing, the total value locked in the protocol stands at $270 million.

In late July, the exchange team launched an updated version of the platform on the Polygon zkEVM network. For PancakeSwap this is the fourth integration — the protocol supports blockchains BNB Chain, Ethereum and Aptos.

Earlier, the developers proposed to change the project’s tokenomics. The initiative envisages a transition from the current high-inflation model of CAKE to neutral issuance or deflation “with real yield and utility”.