[MIP #49] - Support the Conversion of CAKE Earnings as proposed by Cakepie

Abstract

This proposal seeks to gather votes from vlMGP holders on whether Magpie should support Cakepie’s CIP #6. It proposes 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,it will execute the swap, securing more than 1 mCAKE for each CAKE converted.

The feedback from vlMGP holders will guide Magpie’s stance on this matter, ensuring that our actions align with the interests of our stakeholders and reinforce Cakepie’s strategic objectives.

Motivation

It is essential to consult vlMGP holders on decisions that significantly impact our SubDAOs. Supporting this proposal may enhance Cakepie’s influence within the PancakeSwap ecosystem by increasing its veCAKE holdings, which would, in turn, maximize the benefits for mCAKE holders and support long-term platform growth. By backing CIP #6, Magpie aligns itself with Cakepie’s strategic goal of leveraging veCAKE to strengthen its position and improve yields for its users. Additionally, this move could contribute to further stabilizing the mCAKE/CAKE peg, adding value for all stakeholders.

Specification

Vote on whether Magpie should support the conversion of 100% of the CAKE earnings from the mCAKE/CAKE StableSwap Liquidity Pool into mCAKE as proposed in CIP #6.