[CIP #6] - Convert CAKE Earnings from the mCAKE/CAKE StableSwap Liquidity Pool into mCAKE

Abstract

Cakepie is positioned as a leading force within the PancakeSwap ecosystem, having secured the status of the top veCAKE holder with over 12,9 million veCAKE, representing almost 50% of the total veCAKE supply. The primary goal of Cakepie is to accumulate and lock CAKE as veCAKE to maximize benefits for CAKE holders, liquidity providers, and voters within PancakeSwap. This proposal suggests converting 100% of the CAKE earnings from the mCAKE/CAKE StableSwap Liquidity Pool into mCAKE through the Smart CAKE Converter. 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.

Motivation

By converting the CAKE rewards from the mCAKE/CAKE StableSwap Liquidity Pool into mCAKE, we aim to bolster the efficiency of Cakepie’s staking strategy and secure higher and more consistent rewards for our users. The increase in veCAKE control enhances Cakepie’s capacity to influence PancakeSwap governance, attract bribes, and secure more favorable CAKE emissions per epoch. Additionally, this ongoing conversion could help stabilize the mCAKE/CAKE peg through constant buying pressure on mCAKE, benefiting all stakeholders by maintaining a closer alignment between mCAKE and CAKE values. This move supports the long-term sustainability and growth of Cakepie and also aligns with the broader strategic goals of maximizing the benefits of veCAKE for all stakeholders involved.

Specification

  • Convert 100% of the CAKE earnings from the mCAKE/CAKE StableSwap Liquidity Pool into mCAKE through the Smart CAKE Converter before distributing them to participants.

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