[CIP #2] - Convert CAKE earnings from the mCAKE Staking Pool and mCAKE SV into mCAKE

Cakepie 4. Cakepie Improvement Proposals
1

Convert CAKE earnings from the mCAKE Staking Pool and mCAKE SV into mCAKE

Abstract:

Cakepie currently is the top veCAKE holder within the PancakeSwap ecosystem, having accumulated over 9 million veCAKE. Currently, this represents +40% of the total veCAKE within PancakeSwap. The main focus of Cakepie as a platform is to blackhole CAKE tokens from PancakeSwap. This means that Cakepie is on a mission to get the maximum benefits from PCS for our users by locking CAKE as veCAKE. The more veCAKE Cakepie has, the more benefits it can provide for CAKE holders, for liquidity providers, and for PancakeSwap voters. In order for Cakepie to acquire veCAKE, CAKE holders must convert their CAKE tokens into mCAKE on our platform, which allows them to earn enhanced passive income in the form of CAKE via Cakepie.

Since more veCAKE accumulated by Cakepie equates to greater benefits for our users and contributes to the long-term sustainability of Cakepie and PancakeSwap, this proposal suggests converting 100% of the CAKE earned by mCAKE Staking pool participants and mCAKE SV lockers into mCAKE. This conversion would be achieved by converting through the Smart CAKE Converter all the CAKE revenue generated by these two pools into mCAKE prior to distributing it with mCAKE Staking Pool and mCAKE SV participants. The Smart CAKE Converter offers users an enhanced rate when converting CAKE into mCAKE via Cakepie. The Smart Converter first checks the current exchange rate between CAKE and mCAKE on PancakeSwap. If the exchange rate shows mCAKE trading below 98% of the CAKE price, the Smart Converter will execute the swap, securing more than 1 mCAKE for each CAKE converted.

Upon approval, this implementation would daily convert new CAKE into veCAKE for Cakepie while distributing more mCAKE to our users, creating a lasting positive impact on the overall PancakeSwap ecosystem. This strategy effectively decreases the circulating supply of CAKE while increasing the passive income benefits of our users and the influence of Cakepie.

Motivation:

By converting CAKE rewards from both the mCAKE Staking pool and mCAKE SV into mCAKE, users can enhance their staking efficiency and secure higher rewards consistently. Also, augmenting Cakepie’s control over veCAKE not only elevates yield rates and voting capacity but also enhances the platform’s attractiveness through improved APRs, encouraging more deposits and benefiting the overall TVL. Such an increase in veCAKE holdings bolsters Cakepie’s influence within the PancakeSwap ecosystem, potentially leading to a greater share of CAKE emissions per epoch and attracting additional partners for bribes, thus maximizing efficiency. Expanding veCAKE control lays the groundwork for a higher TVL and attracts more bribes for vlCKP voters, significantly contributing to the platform’s growth and appeal.

Specification:

  • Convert 100% of the CAKE rewards allocated to mCAKE Staking Pool and mCAKE SV into mCAKE prior to distributing them.

  • Cakepie will lock all the accumulated CAKE as veCAKE to maximize its veCAKE influence and benefits.