|

News - Archive

PancakeSwap Introduces ‘Gauges’ Voting System and Replaces vCAKE Metric with veCAKE

Author

Jay Solano

Tags

Tags Editor's Choice

Reading time

2 mins
Last update

Author

Jay Solano

Tags

Editor's Choice

Category

News - Archive

Reading time

2 mins
Last update

Author

Jay Solano

Tags

Editor's Choice

Reading time

2 mins
Last update


x

pancakeswap

Join our growing community


PancakeSwap, a prominent decentralized cryptocurrency exchange, has unveiled an innovative voting system named “Gauges” while simultaneously sunsetting its vCAKE metric, introducing the new “veCAKE” metric in its place. This strategic move empowers tokenholders involved in governance decisions to actively participate in determining which liquidity pools should be entitled to augmented rewards. As the third-largest decentralized exchange (DEX) by total value locked (TVL), boasting over $1.4 billion TVL at the time of this announcement, PancakeSwap operates under the governance of CakeDAO—a decentralized autonomous organization comprising CAKE token holders.

Under this newly introduced system, CAKE token holders possess the privilege of voting every fortnight to allocate additional rewards to specific liquidity pools. However, to exercise their voting rights, token holders must lock their CAKE tokens into a smart contract for a predetermined period. Notably, the duration of the lockup period influences the extent of their voting power, measured using the novel “veCAKE” metric, which replaces the previous “vCAKE” metric.

The platform has also phased out its “syrup pool” reward system, whereby CakeDAO members could stake CAKE tokens to receive an enhanced portion of the exchange’s fees. Instead, this additional fee allocation will now exclusively benefit users holding veCAKE tokens. This strategic modification serves to amplify the utility of the CAKE token, allowing sole influence over the profitability of specific liquidity pools to be vested in CAKE holders with veCAKE.

To facilitate the seamless transition from vCAKE to veCAKE, PancakeSwap’s user interface incorporates a straightforward mechanism that enables staked CAKE tokens to be effortlessly migrated to the new contract through a straightforward button click followed by transaction confirmation.

PancakeSwap’s strategic move aligns with a broader trend in the decentralized exchange arena, where platforms continuously introduce new features and enhancements to enrich the cryptocurrency trading experience for users.