_Disclaimer and Risk Warning: This content is for general information and educational purposes only, without representation or warranty. It should not be construed as financial, legal, or other professional advice, nor intended to recommend purchasing any specific product or service. You should seek advice from appropriate professional advisors._

PancakeSwap's CLAMM Options (powered by Stryke) introduces a revolutionary approach to liquidity provision, offering LPs (Liquidity Providers) an opportunity to enhance their returns through options trading. In this blog, we'll explore how providing liquidity on PancakeSwap options works and its benefits to LPs.

## **LP Value Proposition:**
The core value proposition for LPs in CLAMM options remains in line with PancakeSwap v3, providing avenues for strategic capital allocation to optimize returns. However, CLAMM introduces a groundbreaking addition where LPs have the potential to earn options premiums on utilized liquidity ticks, thereby significantly augmenting their overall yield potential.

## **Utilized Ticks and Options Trading:**
In CLAMM Options, liquidity within a specified tick is temporarily transitioned out of the PancakeSwap v3 liquidity pool when utilized for an option contract. This liquidity serves as the underlying asset for the option and cannot revert to the PancakeSwap v3 pool until the expiration or execution of the option contract. This mechanism ensures a clear demarcation between standard liquidity provision and options engagement, maintaining transparency and integrity within the platform.

## **Incentives for Liquidity Providers:**
CLAMM options offer a multifaceted incentive structure designed to maximize LP returns while accommodating the added dynamics of options trading. LPs benefit from swap fee earnings for out-of-range liquidity and premiums derived from options contracts for in-range liquidity. This dual-income stream enhances the attractiveness of providing liquidity on PancakeSwap options, incentivizing LPs to participate actively in the platform.

With the introduction of CLAMM, LPs can capitalize on options premiums to augment their returns while diversifying their investment portfolios across many assets and chai

 In this blog, we'll explore how providing liquidity on PancakeSwap options works and its benefits to LPs.

Benefits of Providing Liquidity on PancakeSwap Options

Slippage in decentralized exchanges (DEXs) refers to the difference between the expected price of a trade and the price at which the trade is actually executed. This phenomenon is prevalent in DEXs due to the nature of their trading mechanics and liquidity dynamics. Slippage often occurs during periods of high volatility when market orders are executed at prices that differ significantly from the quoted prices at the time of order placement.

**Causes of Slippage**

1. **Low Liquidity**: One of the primary causes of slippage is the lack of sufficient liquidity in a trading pair. In DEXs, liquidity is provided by liquidity pools, and if a pool does not have enough depth, large orders can significantly move the market price.
2. **High Market Volatility**: During periods of intense market volatility, rapid price changes can occur between the time an order is placed and when it is executed, leading to slippage.
3. **Order Queue Times**: On a blockchain, transactions including trades need to be mined and included in a block. Delays in this process can lead to discrepancies between the intended execution price and the actual execution price, especially in fast-moving markets.

**Impacts of Slippage**

- **Market Inefficiency**: High slippage can deter traders from participating, especially those looking to execute large orders, thus reducing the overall efficiency of the market.
- **Adverse Price Movements**: Significant slippage can lead to unexpected price movements, which might trigger a cascade of trades that further destabilize the market.

**Mitigation Strategies**

1. **Using Limit Orders**: Limit orders allow traders to specify the range they are willing to trade, providing control over execution price and preventing slippage.
2. **Trade in High Liquidity Pools**: Choosing trading pairs and pools with higher liquidity can help reduce slippage as larger orders can be accommodated.
3. **Slippage Tolerance Settings**: Most DEX platforms, like PancakeSwap, allow users to set a slippage tolerance level, which is the maximum percentage of slippage they are willing to accept. If the slippage exceeds this percentage, the trade will not be executed.

![Screenshot 2024-09-11 at 5.19.31 PM.png](https://sgp1.digitaloceanspaces.com/strapi.space/fefcf2b3cf2a139951053e184e7a878c.png)

PancakeSwap equips its users with advanced slippage mitigation tools, empowering them to manage transactions with precision. By leveraging slippage tolerance settings, traders can ensure that their trades execute within set parameters, which significantly enhances their ability to control and predict the outcomes of their actions. Coupled with robust liquidity pools, these tools provide an effective framework for engaging with the decentralized finance environment, fostering a more stable and manageable trading experience.

The Chefs

By leveraging slippage tolerance settings, traders can ensure that their trades execute within set parameters, which significantly enhances their ability to control and predict the outcomes of their actions. 

Slippage in Decentralized Exchanges: Causes, Impacts, and Mitigation Strategies

**DEX routing** is the process by which decentralized exchanges (DEXs) facilitate efficient trade execution by navigating through multiple liquidity pools or sources to find the best path for a transaction. The goal is to minimize [**slippage**](https://blog.pancakeswap.finance/articles/slippage-in-decentralized-exchanges-causes-impacts-and-mitigation-strategies), reduce fees, and optimize trade outcomes. Advanced algorithms assess factors such as liquidity, pricing disparities, and depth across various pools, often splitting orders across multiple liquidity providers to achieve the most cost-effective results. DEX routing is essential for ensuring smooth and efficient trading within DeFi ecosystem.

### **Types of Routing in DEX**

1. **Direct Routing**:

Executes trades within a single liquidity pool if enough liquidity is available for the desired token pair. This is the simplest and most efficient route.

**Example**: Swapping BNB for CAKE directly in the BNB-CAKE pool.

1. **Multihop Routing:**

Routes trades through multiple pools using intermediary tokens when direct liquidity is insufficient. This helps minimize slippage and optimize execution.

Example: Swapping BNB for TWT by routing through BUSD (BNB -> BUSD -> TWT).

1. **Aggregator Routing:**

Aggregates liquidity from multiple DEXs to find the best trade path, optimizing for price, liquidity, and fees across different platforms.

Example: A trade from BNB to ETH might split liquidity between three exchanges.

1. **Split Orders:**

Splits large trades across multiple pools or routes to reduce slippage and price impact. Each portion of the trade is executed simultaneously across different liquidity sources.

Example: A large BNB-BUSD trade split between two BNB-BUSD pools.

1. **Conditional Order Routing:**

Executes trades based on predefined conditions, such as limit or stop orders, which are triggered when a specific price or market condition is met.

Example: A limit order to buy BNB at a specified price, executed only when that price is reached.

**Advanced Routing Features**: **Navigating Costs and Customization in DEX Routing**

PancakeSwap demonstrates the advanced capabilities of DEX routing with tools such as the Smart Router V3. This tool efficiently harnesses liquidity from multiple sources to guarantee users the best trading prices. Moreover, PancakeSwap offers customizable routing options that allow traders to select specific liquidity sources and configure settings for multi hops and split routing, enhancing their ability to manage trading strategies according to personal or market-driven needs.

![Screenshot 2024-09-10 at 5.51.25 PM.png](https://sgp1.digitaloceanspaces.com/strapi.space/0ad04b4b9307689327ff44fff0fb48c9.png)
![Screenshot 2024-09-11 at 5.18.30 PM.png](https://sgp1.digitaloceanspaces.com/strapi.space/789fafd7820155fe87208ff24cbe0f73.png)

PancakeSwap provides detailed insights into transaction fees and the routing paths via user interfaces that display swap details and routing configurations. This level of transparency empowers users to make informed decisions about their trading strategies, optimizing their operations based on real-time data and personal preferences.

![Screenshot 2024-09-11 at 5.18.14 PM.png](https://sgp1.digitaloceanspaces.com/strapi.space/f4fba7ec835607e7aa3f7fc90bbb3b25.png)

Routing is a cornerstone of DEX, providing the necessary infrastructure to optimize trade execution across the increasingly complex landscape of DEX platforms. Its development and refinement continue to be pivotal in enhancing the efficiency, cost-effectiveness, and accessibility of trading. For those looking to leverage these advancements, understanding and utilizing DEX routing will be key to trade effectively.

The Chefs

DEX routing is the process by which decentralized exchanges (DEXs) facilitate efficient trade execution by navigating through multiple liquidity pools or sources to find the best path for a transaction.

Understanding DEX Routing: The Backbone of Decentralized Exchanges

_Disclaimer and Risk Warning: This content is for general information and educational purposes only, without representation or warranty. It should not be construed as financial, legal, or other professional advice, nor intended to recommend purchasing any specific product or service. You should seek advice from appropriate professional advisors._

In our previous posts, we explored the basics of options trading and how they are priced. Now, let's take the next step and understand Automated Market Makers (AMMs) and Concentrated Liquidity Automated Market Makers (CLAMM). We’ll continue using relatable examples to make these concepts easier to grasp.

### **Why an AMM is Important for Options Trading**

Imagine you're back in the world of booking vacations, but this time, the demand for hotel rooms varies wildly, with no set system to handle bookings. Without a stable mechanism to ensure fair pricing and availability, travellers and hotel owners would struggle to find common ground. This is where an Automated Market Maker (AMM) becomes crucial in the context of options trading.

In traditional financial markets, options are traded on exchanges where buyers and sellers agree on prices. However, in decentralized finance (DeFi), there's no centralized exchange to facilitate these trades. This is where an AMM comes into play. An AMM automatically sets prices and provides liquidity by allowing anyone to participate in the market as a liquidity provider, ensuring that there’s always a market for options trading.

By using mathematical formulas, AMMs create liquidity pools that allow traders to buy and sell options without needing to directly match with another trader. This is similar to a system that automatically adjusts hotel prices based on demand, ensuring that travellers can always find a room at a fair price, and hotel owners can maximize their occupancy.

### **What is an AMM and CLAMM?**

An **Automated Market Maker (AMM)** is a protocol that facilitates the buying and selling of assets directly between traders and liquidity pools, without the need for a traditional order book. Instead of matching buyers and sellers, AMMs use mathematical formulas to price assets, allowing anyone to trade at any time.

Now, take this concept a step further with **Concentrated Liquidity Automated Market Makers (CLAMM)**. PancakeSwap’s CLAMM powered by Stryke takes the flexibility of AMMs and enhances it by allowing liquidity providers to focus their funds within specific price ranges. This is similar to strategically offering certain hotel rooms at better rates during peak travel times, maximizing both occupancy and revenue.

### **Addressing Key Challenges with CLAMM**

### **Liquidity Fragmentation**

In traditional AMMs, liquidity is spread across all possible price points, which can lead to inefficiency—like spreading your travel budget thin across multiple dates and room types, only to find that your top picks aren’t getting the attention they deserve. CLAMM addresses this by allowing liquidity providers to concentrate their assets within narrower price bands where they believe the most trading activity will occur. This concentration reduces liquidity fragmentation and ensures that liquidity is used more effectively.

### **Capital Efficiency**

Imagine being able to allocate your travel budget exactly where it will generate the most value, ensuring you get the best possible trip without wasting resources. CLAMM improves capital efficiency by allowing liquidity providers to allocate their capital precisely where they expect the most trading activity. This focused approach ensures that capital is not wasted on price points where little to no trading occurs, much like choosing the best travel dates to get the most out of your budget.

### **Composability**

Just like how you might combine different travel deals—such as flights, hotels, and tours—into a single vacation package, composability in DeFi refers to the ability to integrate various financial protocols seamlessly. CLAMM’s design enhances composability by enabling options trading within the same liquidity pools used for other DeFi activities. This allows traders and liquidity providers to create more sophisticated strategies, much like combining different travel perks into a well-rounded vacation package.

### **What You Can Do with PancakeSwap CLAMM Options powered by Stryke**

Now that we’ve covered the basics of what AMM and CLAMM are and what problems they solve, let’s take a closer look at what you can do with PancakeSwap CLAMM Options powered by Stryke.

- **Trade with Precision**: PancakeSwap CLAMM Options powered by Stryke allows traders to execute options strategies with precise strike prices and expiration dates, giving you control over your positions. This is akin to selecting exact travel dates and times to get the best deals.
- **Utilize a Variety of Expiration Timeframes**: Whether you’re looking for short-term trades or longer-term strategies, PancakeSwap CLAMM Options powered by Stryke offers a range of expiration timeframes, from just a few hours to several days. This flexibility is like having the option to choose between a weekend getaway and an extended vacation.
- **Take Advantage of Auto-Exercise Features**: With PancakeSwap CLAMM Options powered by Stryke, you can set your options to automatically exercise if they become profitable, much like setting up alerts for price drops on your favourite travel sites. This feature ensures you don’t miss out on potential gains.
- **Earn Premiums as a Liquidity Provider**: If you’re providing liquidity on PancakeSwap CLAMM Options powered by Stryke, you can earn premiums from options contracts that utilize your liquidity. It’s like renting out your vacation home during peak season, earning additional income while your assets are in use.

In our next post, we’ll dive deeper into how you can leverage these features to optimize your options trading and liquidity provision strategies on platforms like PancakeSwap CLAMM Options powered by Stryke. 

Now, let's take the next step and understand Automated Market Makers (AMMs) and Concentrated Liquidity Automated Market Makers (CLAMM)

Understanding a Concentrated Liquidity Automated Market Maker (CLAMM)

_Disclaimer and Risk Warning: This content is for general information and educational purposes only, without representation or warranty. It should not be construed as financial, legal, or other professional advice, nor intended to recommend purchasing any specific product or service. You should seek advice from appropriate professional advisors._

## **How options are priced: From hotel booking to market dynamics**

In our last discussion, we compared options trading to booking a hotel room—locking in a price today with the flexibility to decide later. Just as the final price you pay for that hotel room can fluctuate based on demand, market events, and other factors, an option’s price is influenced by various market conditions. Let’s continue this journey and explore how these prices are determined.

### **Understanding the Black-Scholes Model**

Imagine you’re back to booking that hotel room, but this time you’re using an advanced tool that considers various factors to predict the best rate. In the world of options, the Black-Scholes model works similarly. It’s a mathematical formula used to estimate the fair price of an option.

The model uses inputs like:

- **Current price of the asset (e.g., ETH)**: Just like the current going rate for the hotel room.
- **Strike price**: The locked-in rate you can pay later, similar to your reserved hotel rate.
- **Time until expiration**: How long you have until the option expires, much like how far away your vacation date is.
- **Risk-free interest rate**: An assumed steady rate, similar to assuming certain stable conditions for your hotel stay.
- **Volatility**: How much the price of the asset is expected to fluctuate, similar to how hotel prices might change based on events or seasons.

The Black-Scholes model is a great starting point, but it assumes that volatility is constant. However, in reality, just like unexpected events can cause hotel prices to spike or drop, market conditions cause volatility to change, leading us to the next concept.

### **Exploring Volatility Surfaces and Market Dynamics**

![1.png](https://sgp1.digitaloceanspaces.com/strapi.space/13f43fa67ba5df8cd12a05931697c5a9.png)

Picture this: as your vacation date nears, you see that hotel prices are not consistent across different dates or room types. This is similar to how a volatility surface works in options trading.

A **volatility surface** is a three-dimensional graph showing the implied volatility of an option across different strike prices and expiration dates. Ideally, if everything were predictable, this surface would be flat. But just like hotel prices can vary based on demand, implied volatility changes due to real-world market conditions.

**Implied volatility** refers to the market’s forecast of a likely movement in the asset’s price. If traders expect big price swings, implied volatility goes up, increasing the option’s price. Understanding this concept is key to adjusting your trading strategy to market dynamics.

### **Decoding Volatility Smiles and Market Sentiment**

Now, imagine you notice that certain hotel rooms—like budget ones and luxury suites—are always priced higher, no matter the overall demand. This pattern is similar to a **volatility smile** in options trading.

![2.png](https://sgp1.digitaloceanspaces.com/strapi.space/36856bebb4465c5154d5f30e52f12041.png)

A volatility smile occurs when options that are either deep ITM or OTM have higher implied volatility compared to those ATM. When you plot this on a graph, it creates a U-shaped curve. The Black-Scholes model assumes a flat line for volatility across different strikes, but in practice, market sentiment and expectations of price swings lead to this smile.

This smile helps traders understand where the market expects the most significant price movements and adjust their strategies accordingly.

### **Understanding AMM Pricing with PancakeSwap’s CLAMM Options**

Imagine a booking platform that adjusts hotel rates in real-time based on the latest data. This is similar to how **[PancakeSwap's CLAMM Options](https://pancakeswap.stryke.xyz/)** powered by Stryke works in the options market.

PancakeSwap's CLAMM Options uses the Black-Scholes model as a base but further refines pricing by incorporating real-time market data, including implied volatility and historical price movements. This means that as market conditions change—whether due to volatility shifts or other factors— PancakeSwap Options pricing adapts, ensuring you get a fair and up-to-date price.

By understanding how options are priced—starting from the basics of the Black-Scholes model, through the complexities of volatility surfaces and smiles, to the real-time adjustments in AMM pricing—you’ll be better equipped to navigate the options market. In our next post, we’ll explore more about what an Automated Market Maker (AMM) is, the innovations behind PancakeSwaps’s CLAMM, and how it addresses key challenges like liquidity fragmentation and capital efficiency.

How options are priced: From hotel booking to market dynamics

Options 101: How Options Are Priced

PancakeSwap offers users a variety of ways to engage with the ecosystem. **veCAKE** and **Gauges Voting** have emerged as powerful tools that allow the community and CAKE holders to participate in the distribution of CAKE rewards across liquidity pools.

**1. Understanding veCAKE**

veCAKE (vote-escrowed CAKE) is a governance mechanism that ties your voting power directly to the amount and duration of CAKE you lock on the platform. By locking CAKE, you receive veCAKE, which is non-transferable and directly tied to your wallet. This balance determines your influence in governance decisions, including the crucial Gauges Voting process, where users like you can decide how CAKE emissions are allocated among various liquidity pools.

To explore the benefits of holding veCAKE, please [read this article.](https://blog.pancakeswap.finance/articles/introducing-gauges-voting-and-ve-cake-your-ownership-of-cake-emissions)

### **2. Acquiring veCAKE**

Acquiring veCAKE is a straightforward process, but it requires careful consideration of how much CAKE you want to lock and for how long. The more CAKE you lock and the longer the duration, the more veCAKE you’ll receive, increasing your governance power.

- **Connect Your Wallet:** Start by connecting your wallet to PancakeSwap.

![Screenshot 2024-08-17 at 12.09.56 AM.png](https://sgp1.digitaloceanspaces.com/strapi.space/66a576e6d32d582c33efb18e0af0a57b.png)

- **Lock Your CAKE:** Select the amount of CAKE you want to lock and choose a lock duration ranging from 1 week to 4 years. Longer lock durations result in more veCAKE.

![Screenshot 2024-08-17 at 12.24.51 AM.png](https://sgp1.digitaloceanspaces.com/strapi.space/d3de343ecfb80a4e3ca3525cca0adc50.png)
If you don’t have any CAKE in your wallet, buy CAKE on PancakeSwap using [this](https://pancakeswap.finance/swap?chain=bsc&output=0x0E09FaBB73Bd3Ade0a17ECC321fD13a19e81cE82) link.

- **Confirm the Transaction:** After reviewing your choices, confirm the transaction to lock your CAKE and receive veCAKE

### **What is Gauges Voting?**

Gauges Voting is the process through which veCAKE holders influence how CAKE rewards are distributed across the various liquidity pools on PancakeSwap. By participating in Gauges Voting, you can direct CAKE emissions to the pools you support, increasing their attractiveness to liquidity providers. The more veCAKE you hold, the greater your influence, making it a key component of PancakeSwap’s decentralized governance structure.
![Screenshot 2024-08-17 at 12.29.57 AM.png](https://sgp1.digitaloceanspaces.com/strapi.space/7f21fd1f6e57460395ff97118640da63.png)
**Participating in Gauges Voting**

**Once you have veCAKE, you can participate in Gauges Voting:**

1. **Access the Gauges Voting Page:** Navigate to the [Gauges Voting](https://pancakeswap.finance/gauges-voting) page on PancakeSwap.

- **Review Liquidity Pools:** Examine the LPs available for voting and decide where you want to allocate your veCAKE.
![Screenshot 2024-08-17 at 12.30.57 AM.png](https://sgp1.digitaloceanspaces.com/strapi.space/57185d777420d9fa79e0f7a755005712.png)

1. **Submit Your Votes:** Distribute your veCAKE among the pools you want to support. Confirm your allocation by submitting your vote.

**4. Monitor Results:** After each voting round, monitor how the CAKE emissions are distributed based on the votes, and adjust your strategy for future rounds.

### **5. Earning and Managing Rewards**

Gauges Voting directly impacts the distribution of CAKE rewards, making your participation crucial. By voting for specific pools, you can help direct more CAKE rewards to those pools, benefiting all liquidity providers involved. Regular participation and careful management of your veCAKE, such as increasing your lock duration, can maximize your influence and rewards.

### **6. Additional Features and Considerations**

veCAKE holders can also engage with bribes (voting incentives) offered by other users or projects aiming to acquire your votes. This adds an additional layer of strategy to Gauges Voting. Furthermore, PancakeSwap’s cross-chain support allows you to vote across multiple blockchains, providing flexibility in how you engage with the ecosystem.

To check out additional voting incentives, check out various bribing markets that work with veCAKE:

- [Cakepie](https://www.pancake.magpiexyz.io/vecake-bribe)
- [StakeDAO](https://votemarket.stakedao.org/?market=cake&solution=All)
- [Hiddenhand](https://hiddenhand.finance/pancakeswap)

To learn more about how to earn incentives, check out the step by step guides:

- https://blog.pancakeswap.finance/articles/how-do-you-earn-vote-incentives-on-cakepie-s-ve-cake-voting-market
- https://blog.pancakeswap.finance/articles/how-do-you-earn-vote-incentives-on-stake-dao
- https://blog.pancakeswap.finance/articles/how-do-you-earn-vote-incentives-on-hidden-hand

### 

Mastering veCAKE and Gauges Voting on PancakeSwap empowers you to play a significant role in shaping the platform’s future. By locking your CAKE, participating in voting, and strategically managing your veCAKE, you can maximize your influence and rewards. Whether you're looking to support your favorite liquidity pools or simply want to engage more deeply with the PancakeSwap community, veCAKE and Gauges Voting offer you the tools to make a real impact. Acquire veCAKE and start making your votes count today!

The Chefs

veCAKE and Gauges Voting have emerged as powerful tools that allow the community and CAKE holders to participate in the distribution of CAKE rewards across liquidity pools.

Step by Step Guide: Unlocking the Power of veCAKE and Gauges Voting on PancakeSwap

At PancakeSwap, our Initial Farm Offerings (IFOs) provide a unique and effective method for our users to gain first access to token launches. We offer two distinct types of sales: Public Sales and Private Sales. 


## **Public Sales**


## **Requirements:**

1\. **Active PancakeSwap Profile**: You’ll need an [**active PancakeSwap Profile**](https://quest.pancakeswap.finance/create-profile?chain=bsc) to take part in an IFO 

2\. **Lock CAKE**: Lock more CAKE for longer durations to increase the maximum allocation you can commit to the sale. 
   
To secure your allocation in the IFO, you need to lock CAKE [**here** ](https://pancakeswap.finance/cake-staking) to acquire iCAKE.

iCAKE, short for Initial CAKE, represents the maximum amount of CAKE you can allocate to an IFO. This value is calculated based on your [**veCAKE**](https://blog.pancakeswap.finance/articles/introducing-gauges-voting-and-ve-cake-your-ownership-of-cake-emissions) balance, which indicates the amount of CAKE you've locked up for a certain period. For a detailed exploration of iCAKE, check out our dedicated blog post [here](https://blog.pancakeswap.finance/articles/understanding-icake-your-key-to-maximize-participation-in-pancakeswap-ifos).

 For example, in the [LISTA IFO](https://blog.pancakeswap.finance/articles/ama-with-lista-dao-the-next-ifo-project-in-pancake-swap), a 1x iCAKE ratio is applied, allowing users to commit up to the amount of their veCAKE in CAKE.  In that case, if you have 1,000 veCAKE, you can commit up to 1,000 CAKE in the IFO. 

3\.  **Participation Fee**: In the Public Sale, the participation fee is 1%.

This fee is calculated based on the amount of committed CAKE, minus the portion used to purchase the lFO tokens, and is subsequently burned. 

In other words, the higher the oversubscription rate of a IFO, the greater the amount of CAKE tokens that will be burned through the participation fee.


## **Private Sales**

## **Requirements:**

Private Sales participation is typically limited to users who own a **Pancake Squad NFT OR a significant number of PancakeSwap Profile points**. 


-**Pancake Squad NFT Holders**: You need to set a Pancake Squad NFT as your [**Pancake Profile**](https://pancakeswap.finance/create-profile) avatar.

-**Pancake Profile Point Holders**: Have at least certain amount of PancakeSwap Profile Points, depends on the announcement of each IFO.

PancakeSwap Profile Points measure a user's activity and achievements on the PancakeSwap platform. 

To check your points, go to your [profile](https://pancakeswap.finance/profile/0x586ca92c4ab530f9f9b686ad754e1274702c037f), and check your points. Please ensure your points record is up-to-date by claiming any unclaimed tokens from previous IFOs or cIFOs.]
There's no fee in the Private Sales.
(More details about our point system will be revealed soon.)

**Participation Fee**: There's no fee in the Private Sales.
        
Note: If you don't have enough points, you can purchase a Pancake Squad NFT to gain access to the Private Sale.


### **Detailed Guide to Participating in PancakeSwap IFOs**

**To participate in any of PancakeSwap's IFOs, follow these detailed steps:**

**1. Activate Your Profile:**

   You need an active PancakeSwap Profile to participate in an IFO. This profile serves as your entry point into the various offerings on the platform.
    
**2. Lock CAKE in the CAKE Pool:**

To secure your allocation in the IFO, you need to lock CAKE here to hold veCAKE. The allocation you can obtain via Public Sale corresponds to the amount of your iCAKE.
 
For a detailed exploration of iCAKE, check out our dedicated blog post [**here**.](https://blog.pancakeswap.finance/articles/understanding-icake-your-key-to-maximize-participation-in-pancakeswap-ifos)
    
    
**3. Check Your Points:**

   To participate in the Private Sale, ensure you meet the criteria by either owning a [**Pancake Squad NFT or having at least 1,500 points**.](https://pancakeswap.finance/profile/0x586ca92c4ab530f9f9b686ad754e1274702c037f)
 

## **What's more: Basic Sale - IFO on a New Chain**

There's another type of IFO sale called the Basic Sale. The Basic Sale is a combination of Private and Public Sales and ONLY takes place on a new chain. In a Basic Sale on a new chain, no veCAKE is required. Users receive a proportional share of tokens based on their contribution relative to the total amount raised in the IFO.


At PancakeSwap, we are dedicated to providing a flexible and inclusive IFO participation framework. We encourage our community to explore these opportunities and make informed decisions to maximize their participation in PancakeSwap's IFOs!

_Visit our IFO Page now: [https://pancakeswap.finance/ifo](https://pancakeswap.finance/ifo)_

The Chefs


At PancakeSwap, our Initial Farm Offerings (IFOs) provide a unique and effective method for our users to gain first access to token launches. We offer two distinct types of sales: Public Sales and Private Sales. 