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

**URL:** <https://gov.magpiexyz.io/t/mip-49-support-the-conversion-of-cake-earnings-as-proposed-by-cakepie/291>\
**Category:** 4. Magpie Improvement Proposals\
**Created:** [August 27, 2024, 10:27pm UTC](https://gov.magpiexyz.io/t/mip-49-support-the-conversion-of-cake-earnings-as-proposed-by-cakepie/291 "2024-08-27T22:27:02Z")\
**Posts on this page:** 2\
**Page:** 1

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**Author:** ![Desmen](https://yyz1.discourse-cdn.com/flex031/user_avatar/gov.magpiexyz.io/desmen/32/84_2.png) [@Desmen](https://gov.magpiexyz.io/u/Desmen)\
**Post date:** [August 27, 2024, 10:27pm UTC](https://gov.magpiexyz.io/t/mip-49-support-the-conversion-of-cake-earnings-as-proposed-by-cakepie/291/1 "2024-08-27T22:27:03Z")

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## 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.

> [@\[CIP #6\] - Convert CAKE Earnings from the mCAKE/CAKE StableSwap Liquidity Pool into mCAKE](https://gov.magpiexyz.io/t/cip-6-convert-cake-earnings-from-the-mcake-cake-stableswap-liquidity-pool-into-mcake/292):
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> 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 throu…

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<div class="post-metadata">

**Author:** ![Desmen](https://yyz1.discourse-cdn.com/flex031/user_avatar/gov.magpiexyz.io/desmen/32/84_2.png) [@Desmen](https://gov.magpiexyz.io/u/Desmen)\
**Post date:** [November 13, 2024, 4:48pm UTC](https://gov.magpiexyz.io/t/mip-49-support-the-conversion-of-cake-earnings-as-proposed-by-cakepie/291/2 "2024-11-13T16:48:54Z")

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