**Good afternoon PancakeSwap community and CAKE holders!🐰**

We’ve noticed that many of you had questions and points of feedback from our Discussion Proposal for CAKE tokenomics v2.5

If you haven't yet read the proposal, you can find it here 👉 [https://bit.ly/3Ac4Vpb ](https://bit.ly/3Ac4Vpb)

We want to share with you the answers to many of the questions you have been asking. 

Please, if you have any other questions regarding the voting, feel free to ask our chefs in our communities and official channels. 



**❓CAKE Tokenomics v2.5  FAQs❓**


**Q: How will revenue sharing work in Tokenomics v2.5?**

A: Revenue generated from v3 will be shared with stakers, and longer-term stakers will receive a bigger share of the revenue. The technical details of implementation are still being worked out, but it will follow the logic of the current CAKE staking, where longer-term stakers are favored over shorter-term stakers to align the benefits of loyal stakers with the growth of PancakeSwap. 

**Q: How will the revenue be distributed to stakers?**

A: Users who are fixed-term staking their CAKE will be able to participate in the new revenue sharing program. Same with locked staking, the distribution will be biased towards longer term staking users. Earned revenues will be able to harvest on a monthly basis.

**Q: Why is the revenue share set at 5%?**

A: The 5% revenue share is based on various wider considerations. The Chefs currently believe that it will not affect the competitiveness of the 0.01% and 0.05% trading pools based on v3's early successful launch, and the revenue share will be sustainable. The allocation of trading fees has been carefully considered to ensure that LPs are still provided with the right amount of fees and CAKE rewards, so that the platform can be sustainable over the long term against competitor DEXs on different chains.

**Q: Is protocol revenue sharing going to be able to make up the reduction in staking APR?**

A: It is not expected to in the short term. First, please see our [**documentation**](https://docs.pancakeswap.finance/products/pancakeswap-exchange/faq) on the trading fees and breakdown of v3 and how trading fees are distributed to various parties. For a quick estimate, for second week of v3’s launch, v3 traded approximately $800m of volume in a week ([**link**](https://pancakeswap.finance/info/v3)). As most trading occurs in the 0.01% and 0.05% fee tier, we can assume the average fee paid on this volume is 0.025%. On an annualized basis, a 5% revenue sharing of this fee should amount to under 1% APR.

For PancakeSwap and other DEXs, most of the AMM trading fees go to liquidity providers, who risk their capital to enable trading on PancakeSwap. A large part of the remaining funds goes to CAKE buyback and burn mechanism to reduce CAKE supply.

Growth in protocol revenue from AMM trading is largely expected to come from PancakeSwap successfully expanding to more chains. PancakeSwap is currently the leading DEX on BNB Chain, and is actively building on Ethereum and other chains to come.

**Q. Will using 5% of the distribution from the treasury have any long-term impact on the dev fund?**

A: We don't think so. We had earmarked this portion for LPs in case the LP distribution needed to be higher and liquidity providers were not coming to v3. Our primary aim with v3 is always to ensure that we support the TVL, pushing our trading volume and CAKE burn to new heights. As you have seen with the recent Farm emissions reduction and now this Syrup Pool reduction, we are erring on the side of not having to increase CAKE APRs (i.e. inflation) on Farms to attract liquidity providers.

**Q: What is the relationship between the CAKE Syrup Pool APR, and overall inflation rate?**

A: The CAKE Syrup Pool currently receives the largest allocation of CAKE emissions. Following the reduction on [**Farm Emissions**](https://pancakeswap.finance/voting/proposal/0x367af4eddf693f76cdfd59691e7d100cb23053a8c5f7c34c5318789bfeeb6932), CAKE Syrup Pool currently receives ~70% of all CAKE emissions. Therefore, there is a strong relationship between CAKE’s overall inflation rate and the Syrup Pool emission rate. Below is a table that shows the relationship between CAKE/block emissions on the CAKE Syrup Pool, APR, and overall inflation rate.

![image3.png](https://sgp1.digitaloceanspaces.com/strapi.space/209fe59f31dd8c159568109c34efbb56.png)
CAKE inflation rates are dynamic on many factors since there are many sources of CAKE emissions and CAKE burn, therefore figures are very approximate.



**Q: Will CAKE staking still be attractive after Syrup Pool reductions are introduced?**

A: First, the CAKE token is one of the most utility-rich tokens in crypto. See a brief summary here. 
Second, below is a sampling of staking APRs (if available) on other leading DEXs on other chains, listed in order by Coingecko volumes. 


![image1.png](https://sgp1.digitaloceanspaces.com/strapi.space/0793d40a5e9d0374fe5bf22da1446ee0.png)
_Data: Current as of 25rd April, 2023._

**Q: If CAKE Syrup Pool APR is comparable with L1 staking interest rates, would that make CAKE staking uncompetitive?**

A: DEX and DeFi protocols have different token models from L1s. L1s do not provide trading or DeFi services, do not need/want to incentivize liquidity for execution of trades and therefore their tokenomics model is not based on the same logic. 

We cannot speak to all the details which drive L1 staking APR, however the comparison between CAKE staking and L1 staking is not apples-to-apples.

**Q: What are the product benefits that will accrue to staked CAKE and how will longer stakers benefit on the product utility?**

A: On a high level, many products on PancakeSwap attract some level of fees which are mostly going to CAKE burn. 

As a general principle, Staked CAKE can therefore be used to differentiate either fee levels or be used to boost returns, depending on the product. For example, with the upcoming Simple Staking integration, we are working on reducing fees for CAKE Stakers so that their net return is higher relative to non-stakers.

For bCAKE, which will be introduced to key v3 farms soon. Please see how bCAKE works for previous v2 Farms [**here**](https://docs.pancakeswap.finance/products/yield-farming/bcake/how-to-use-bcake). Moving to v3 Farms, bCAKE will stick with a similar mechanism, boosting your staked farming positions. CAKE Stakers who are contributing liquidity are doubly aligned with PancakeSwap - they are staking CAKE rewards and also contributing to PancakeSwap’s trading execution on important pools plus CAKE burn. bCAKE therefore creates the right alignment and rewards for this very important group of users.


**Q: Will CAKE be directly deflationary after this proposal if we go for the biggest reduction?**

A: It will be very close. Please refer to the table in the voting proposal - inflation falls to about ~5%.

**Q: Besides the mentioned benefits, what future plans do you have for CAKE lockers?**

A: PancakeSwap upgrades existing products and develops new products every quarter in our goal to be the leading all-in-one DeFi platform. Future plans will include CAKE lockers as much as possible to create more utility and preference for CAKE lockers. We also intend to go to other chains with our existing products, increasing the sources of trading volume which drive growth in the protocol revenue share to stakers.

**Q: Why do we need low inflation? PancakeSwap’s differentiating factor is its high APR, which drives people to come and stake and use the platform.**

A: Reduced inflation results in a lower number of CAKE tokens being generated over time. If PancakeSwap issues CAKE tokens at a rate that exceeds its growth, the protocol's value will be spread over an increasing number of tokens. Consequently, the value of each CAKE token will decrease over time as the value is distributed over a disproportionately larger number of tokens.

While a high APR may seem appealing at first glance, the additional CAKE tokens is counterbalanced by the increased distribution of value across more CAKE tokens. 

**Q:  Wouldn't it be better to end the burning? Stop the emission and transfer the amount burned as revenue share in stable?**

A: That would not be the case. Most of the protocol revenue is directed to burn because this is the most direct way to counterbalance the inflation of the CAKE token. Even if we were to have no more staking emissions on CAKE Syrup Pools (which is what some other leading DEXs have moved to), we still have emissions on Farms. A significant advantage of PancakeSwap is the significant runway of CAKE emissions which can help to attract TVL from DEX protocols which no longer emit liquidity mining rewards. As TVL is one important factor in driving trading volumes, CAKE emissions on Farms will help to attract TVL, which in turn generates trading volume on the AMM and the revenue that is now going to burn and into distribution to CAKE lockers.

If we were to end the burn completely, CAKE holders and stakers would lose a major source of buying pressure which balances CAKE inflation from Syrup Pools and Farms. They must depend 100% on users and protocols buying CAKE to counterbalance the inflation on farms. Lower value CAKE will then require more emissions to incentivize liquidity miners, which drives even more inflation.


**Q: Does PancakeSwap plan to educate users, especially new users who may prioritize high APR, about the potential benefits and drawbacks of Ultrasound CAKE and how it differs from other deflationary mechanisms?**

A: Yes. We intend to be broad-based, highlighting not just aspects about inflation but also the utility of the CAKE token. We expect this to be a long-term, ongoing effort.

**Q: Are there other future utility features for locked CAKE?**

A: We are trying to incorporate CAKE staking in our new products this quarter. Given Q2 development requirements (some of which we didn't announce in the roadmap), we will revisit our existing products and how we can further refine/add product utilities onto CAKE in Q3 and beyond.

**Q: Could we put an end to the CAKE locked pool?**

At a lower level of inflation than the current, PancakeSwap can support a small rate of inflation on the CAKE Syrup Pool, which serves as one utility of the CAKE token. Unlike many other DEXs, we dedicate protocol revenue to buyback-and-burn, which means that some CAKE inflation can be supported in the long term so as long PancakeSwap continues to make progress on its products.

CAKE staking allows us to align the benefits of token holders and the protocol. For example, a user who locks CAKE and provides liquidity contributes more to PancakeSwap than a user who only farms CAKE through liquidity mining. At a sustainable level of inflation, the protocol should incentivize users who are more aligned with protocol needs and growth by increasing the level of benefits to them.

**Q: What is PancakeSwap’s future plan with regard to managing Syrup Pool and CAKE inflation in general?**

A: The crypto market is very dynamic and is increasingly multichain. Therefore, we will operate on the basis of first/fundamental principles which guide PancakeSwap to better models. The key principles with regard to Syrup Pool and general inflation are:

**Syrup Pool**

- Competitive and attractive relative to other DEXs
- De-emphasize APR, emphasize and build on CAKE utilities to align protocol growth and CAKE stakers
- Rewarding long-term stakers more than short-term stakers due to higher alignment with PancakeSwap

**Inflation**

- Target deflationary CAKE
- Balance emissions with economic activity that generates CAKE burn
- Selective strategic CAKE emissions to gain market share across core products which drive CAKE burn in the longer-term


_For previous discussion proposal_

**Q: Do CAKE voters only vote on the bolded options (1 CAKE or lower)?**

A: No. All options on the voting proposal are open for voting, including ones are smaller cuts on the Syrup Pool. If the community does not want to reduce emissions on the CAKE Syrup Pool so quickly, the final proposal will take the higher emission rate options as the base to start and propose schedules of varying durations for reducing emissions on the CAKE Syrup pool

**Q: Why are there many options available, including very aggressive cuts and also higher CAKE/block options?**

A: This proposal aims to understand if the community wants to continue the gradual reduction of the Syrup Pool, opt for a faster but gradual rate of reduction, or make quick, aggressive cuts to stem inflation. The trade-off is between inflation and the speed of Syrup Pool reduction.

**Q: If people vote for other emission reductions, is revenue sharing still on the table?**

A: Yes. The proposal intends to set the structure for CAKE to move to a more sustainable model of substituting inflationary yield (which increases the amount of CAKE) with real / protocol yield (which does not affect CAKE supply)

The proposal does not automatically discard revenue sharing simply because the community is not voting on very low emissions. We want the community to consider the balance of inflationary yield, real/protocol yield against inflation on CAKE and the attractiveness of the CAKE Syrup Pool to attract future stakers to lock and present stakers to re-lock

**Q: Is 0.35 / 0.5 CAKE/block the best option since it is the lowest option?**

A: Not necessarily. The CAKE Syrup Pool currently has the largest allocation of CAKE emissions (see our [**tokenomics**](https://docs.pancakeswap.finance/tokenomics/cake/cake-tokenomics) and the recently [**reduced allocation**](https://pancakeswap.finance/voting/proposal/0x367af4eddf693f76cdfd59691e7d100cb23053a8c5f7c34c5318789bfeeb6932) to the Trading Allocation), and contributes the most to overall CAKE inflation. (See below for detailed calculation) Therefore, cutting CAKE Syrup Pool emissions aggressively may seem to be the best option. However, CAKE Syrup Pool and its APR contribute to the CAKE token by encouraging CAKE holders to lock up their freely circulating tokens, reducing selling pressure. Regardless of the voting outcome on reduction, CAKE Syrup Pools will continue to attract stakers partially due to the APR it offers (ignoring all the other utilities that are and would be available). 

Therefore, voters should consider what they view as a healthy balance between attracting new stakers (and existing stakers to relock) and overall inflation of the CAKE token, while Chefs work towards increasing CAKE burn from organic protocol revenues on new and existing products



Doubts about the emissions reduction proposal? Come and read about it!

FAQ: Discussion Proposal for CAKE tokenomics v2.5

Hey PancakeSwap Fam, 

We have teamed up with Orbs Network to develop a new feature to level your trading experience. Say hello to TWAP (Time-Weighted Average Price) and Limit orders, now seamlessly integrated into PancakeSwap's ecosystem on the BNB Chain. This feature spans all DEX liquidity sources and versions (v2, v3 StableSwap, etc.). Moreover, we're planning to extend this feature to multiple chains soon.

### **What are TWAP and Limit Orders?**
TWAP, a staple in traditional finance, is designed to break large orders into smaller trade sizes and execute them at regular intervals. This minimizes the order's price impact and allows for implementing a dollar-cost averaging (DCA) strategy. On the other hand, Limit orders empower users to buy or sell assets at a specified price or better, providing more control over trade execution.

### **Why Integrate TWAP and Limit Orders?**
- Price Impact Reduction: With TWAP, the adverse effects of high price impact on large trades or low-liquidity pairs are mitigated, ensuring better outcomes for traders.
- Automation of Dollar-Cost Averaging (DCA): Implementing a DCA strategy becomes effortless as TWAP automates the process, smoothing market volatility over time.

### **How to Get Started with TWAP and Limit Orders:**
1\. Visit **[PancakeSwap](https://pancakeswap.finance/swap/limit)** and connect your wallet to the BNB Chain.
![Screenshot 2024-04-10 at 14.51.04.png](https://sgp1.digitaloceanspaces.com/strapi.space/ae366949140d3eb83ef1973835f10a3f.png)

2\. Specify the token pair and amount you wish to trade.

![Screenshot 2024-04-10 at 14.52.27.png](https://sgp1.digitaloceanspaces.com/strapi.space/392c94d123dd77e7a5298c24ae86580c.png)

3\. Choose whether to set a limit price. Trades will execute only if the market price equals or exceeds the limit price.

![Screenshot 2024-04-10 at 14.52.33.png](https://sgp1.digitaloceanspaces.com/strapi.space/c138e81953f05ec254552a54bb34a49a.png)

4\. Determine the total number of trades and the trade interval to tailor the execution to your preference. Set the maximum duration for the order to ensure timely execution.
![Screenshot 2024-04-10 at 14.52.55.png](https://sgp1.digitaloceanspaces.com/strapi.space/91b2cd7e024464b218310087cf447a9c.png)

If you have more questions, please refer to our documentation **[here](https://docs.pancakeswap.finance/products/pancakeswap-exchange/limit-orders)**.

Empower your trading strategy with TWAP and Limit orders today **[on PancakeSwap](https://pancakeswap.finance/swap/limit)**, and elevate your trading game to new heights!

Happy Trading,

The Chef’s

Say hello to TWAP (Time-Weighted Average Price) and Limit orders, now seamlessly integrated into PancakeSwap's ecosystem on the BNB Chain

 PancakeSwap Teams Up with Orbs Network to Introduce TWAP and Limit Orders

### Data Recap
#### Overall
- Total Volume: $44.8B
- Average Daily Volume: $1.4B
- Unique Traders: 2.6M
- Unique Onsite Users: 5.3M
- Web3 Wallet — Onsite Users: 109K
- Web3 Wallet — Average Daily Users: 8K
- Gaming Marketplace - AVG Daily Users: 6k

#### CAKE
- Total burned: 36.2M CAKE ($143.7M)
- Bought back from the market to burn: $5.8M
- N° of holders: 1,640,421 (MoM 2.05%)
- Effective CAKE Emission Rate: 1.36 CAKE/Block

*As our emissions and burn data are calculated and grouped by weeks, not months, the statistics above may not one-to-one reflect our “monthly burn”, and only serves as a guideline. For more information on our burns, please refer to our weekly burn post on our social channels.

#### 🍽✅ Served In March

#### PancakeSwap v4: Your DEX, Your Innovation 

![v4.png](https://sgp1.digitaloceanspaces.com/strapi.space/0d14d562a94e0e569dc341d5caf55bbc.png)

Introducing PancakeSwap v4: For Developers, Traders & Every User.

Since the launch of PancakeSwap in 2020, we've achieved remarkable milestones. While PancakeSwap v3 brought improvements, it lacked composability for leveraging PancakeSwap’s liquidity and user base. Additionally, it didn't offer seamless integration for developers and DeFi protocols to create on top of it. 

That’s why we present PancakeSwap v4, a groundbreaking iteration designed to address these challenges head-on. Our codebase is open-sourced, inviting developers to explore and contribute.

This is just an announcement. The DEX is scheduled to launch in the third quarter of this year on Ethereum and BNB Chain, with intentions to expand to additional chains in the future
Hooks, Singleton, Customized Pool Types, Flash Accounting. A lot of new things are coming to the AMM, and we invite you to come and learn how you can contribute to it! We’re also initializing a $500K Developer Program & CAKE Emission grant program, an initiative to empower and support developers in the DeFi ecosystem.

It’s impossible to put into words how this announcement made us feel! We invite you to check our v4 directory to understand PancakeSwap v4 deeply. 

The moon is made of Pancakes! 

#### **PancakeSwap v4 Directory**

-[**PancakeSwap v4 page**](https://pancakeswap.finance/v4)

-[**Introducing PancakeSwap v4: For Developers, Traders & Every User**](https://blog.pancakeswap.finance/articles/introducing-pancake-swap-v4-for-developers-traders-and-every-user)

-[**PancakeSwap v4 Whitepaper**](https://github.com/pancakeswap/pancake-v4-core/blob/main/docs/whitepaper-en.pdf)

-[**PancakeSwap v4 FAQ**](https://blog.pancakeswap.finance/articles/pancake-swap-v4-answering-all-your-questions-about-v4)

-[**Mochi's vision for PancakeSwap v4**](https://blog.pancakeswap.finance/articles/chef-mochi-s-vision-for-pancake-swap-v4-a-leap-forward-in-de-fi-innovation)

-[**Why should Developers build on PancakeSwap v4 and How to build Hooks**](https://blog.pancakeswap.finance/articles/why-should-developers-build-on-pancake-swap-v4-and-how-to-build-hooks)

-[**Introducing PancakeSwap’s $500K Developer Program and CAKE Emissions Grant Program**](https://blog.pancakeswap.finance/articles/introducing-pancake-swap-s-500-k-developer-program-and-cake-emissions-grant-program)

-[**What’s in it for Developers, DeFi Protocols, Traders, and Liquidity Providers**](https://blog.pancakeswap.finance/articles/everything-you-need-to-know-about-pancake-swap-v4-what-s-in-it-for-developers-traders-liquidity-providers-and-defi-protocols)

-[**PancakeSwap v4 Developer Docs**](https://developer.pancakeswap.finance/)

#### ETH Global London: Our first hackathon! 

![ETHLondon Stand.jpg](https://sgp1.digitaloceanspaces.com/strapi.space/db084d462ab0073cf5c46abfcff3796a.jpg)

During ETH Global London, we unveiled the PancakeSwap v4 announcement. Through our keynote presentation and v4 workshop, helmed by the esteemed Chef Momo and Chef Burger, attendees gained invaluable insights into the transformative benefits and challenges accompanying this pivotal change within the PancakeSwap Kitchen and the whole DeFi ecosystem.

The cherry on top of the pancake is that we hold our first hackathon! Developers were tasked with crafting innovative features utilizing our Custom Layer with Hooks, vying for a chance to claim their share of the $10,000 prize pool! 🐰 A discerning panel of judges, comprised of loved PancakeSwap Chefs, faced the arduous challenge of selecting the deserving winners.

We extend our heartfelt gratitude to all those who visited our booth and offered their unwavering support throughout the event's three days.

If you missed out on the excitement, fret not! We've prepared a recap video for your enjoyment, ready to be replayed to your heart's content! https://www.youtube.com/watch?v=UBU9Ui9HZTc

#### March 2024: PancakeSwap's CAKE Burn - New ATH

![March Burn Recap 2024-04-07 23.58.27.jpg](https://sgp1.digitaloceanspaces.com/strapi.space/6a5e3ec6d1684e9bf8c5a4582d777b1a.jpg)

Can you smell the burned pancakes? It’s the smell of deflation 
In March, we burned 1,789,306 CAKE, with…drums please 🥁…-731,042 Net Mint! That marks a new ATH in terms of net mint 🔥

🐰This is the 7th consecutive month of CAKE total supply reduction, with a cumulative -2,103,059 CAKE net mint

Take a look at March’s burn report here 👉 https://blog.pancakeswap.finance/articles/march-2024-pancake-swap-s-cake-burn 

#### Affiliates Initiative: Mancake, the first candidate! 

![mancake proposal.jpg](https://sgp1.digitaloceanspaces.com/strapi.space/56f542875cc1bddce20ee9ae9b3f77ab.jpg)

In February, we presented our Affiliates Initiative to the PancakeSwap Community: To assist the PancakeSwap protocol in being up-to-date with the crypto industry’s developments, the Kitchen intends to invite and, on a case-by-case basis, approve forks of PancakeSwap onto any chains that PancakeSwap is not already deployed on, based on certain principles.

You can refresh your memory about it in this Forum Discussion: https://forum.pancakeswap.finance/t/discussion-on-pancakeswap-affiliates-a-multichain-expansion-strategy/395 

The reception was pretty good, and the valuable feedback was all taken! 

During March, we presented the discussion to launch our First Affiliate DEX initiative on the Mantle network with MancakeSwap! 

MancakeSwap; or ‘Mancake’ - is an affiliate fork of PancakeSwap on Mantle Network. Officially supported by  PancakeSwap and Mantle Network, Mancake provides users an all-in-one service to trade, earn, and own various cryptocurrencies in a trustworthy environment with a user-friendly interface.

The Mancake launch is now on voting stage. 🗳 Read more about the proposal and cast your vote for free here: https://pancakeswap.finance/voting/proposal/0xbf8ac28356bd7ad863c7a1bf9fb66901b44430f274986a4e8793639f8214a747 

#### bCAKE Migration: Attention CAKE Stakers!

![bcake migration banner.jpg](https://sgp1.digitaloceanspaces.com/strapi.space/4f5c3bf7b0969ee1cc1cb62c02a8aba4.jpg)

Starting on April 5th, if you’re staking CAKE on BNB CHAIN v2 Farms, StableSwap, & Position Manager, you must migrate your stakings, to continue earning rewards! 

🔍 See how to Migrate ⤵️
https://docs.pancakeswap.finance/products/yield-farming/bcake/migration-guide

![bcake migration pairs.jpg](https://sgp1.digitaloceanspaces.com/strapi.space/bfcba7e4c2c6a00b2e8bc5b34d6a5a6f.jpg)
 
🔜More pairs to be added - stay tuned for updates!

#### PancakeSwap x Wormhole Integration

![PancakeSwap x Wormhole.jpg](https://sgp1.digitaloceanspaces.com/strapi.space/165b14cfaa4fa18250d353d9a9683472.jpg)

🥞 PancakeSwap has now integrated Wormhole Connect, allowing seamless token transfers.

🌐 Transfer assets to BNB Chain hassle-free and enjoy uninterrupted access within the app.

🔗 Experience the multichain development with Wormhole Connect. Learn more: https://twitter.com/wormholecrypto/status/1768276001010942444

#### Position Manager: News 

![DefiEdge news.jpg](https://sgp1.digitaloceanspaces.com/strapi.space/3e3fbdc6487fc21cecde099c7c0390cf.jpg)

DeFiEdge’s Position Manager is now on Arbitrum PancakeSwap! Now you can enjoy DeFiEdge’s strategies on the Arbitrum Network! 

Dive into the 8 pairs LP with 80,000 ARB rewards over 6 weeks! Get started: https://pancakeswap.finance/position-managers?chain=arb 

#### New Pools

![Pools Marchpng.png](https://sgp1.digitaloceanspaces.com/strapi.space/5de943954e8883ef8d29afa22c60b7c2.png)

#### New Farms

![Farms March.png](https://sgp1.digitaloceanspaces.com/strapi.space/67361746805a54c48cfea4efbe1f833b.png)

### Still Cooking - Coming Soon!

**DEX: New Trading Venue**

There is always more to do to improve the PancakeSwap user experience. You can never be user-friendly enough! 

For a few months, we have been working on two new features that we believe will significantly improve how tokens are swapped in PancakeSwap and how users interact with the whole PancakeSwap ecosystem. 

Without giving too many details, we want to let you know that we will soon introduce both features together, and you can be part of that presentation! 

Are you interested in trying them out before anyone else? Let us know! 

**v4: Developers focused-activities**

Following the v4 Announcement and the success of our inaugural hackathon, we're thrilled to announce that this is just the beginning of a series of engaging events to come. 

That's right – more activities like these are on the horizon! We're committed to fostering creativity, innovation, and collaboration within our ecosystem, providing developers with opportunities to showcase their talents and push the boundaries of what's possible in decentralized finance. 

Stay tuned for updates and be ready to unleash your creativity in future events. Together, we'll continue to build, innovate, and shape the future of DeFi.

#### Still hungry?
Join us on Twitter , Telegram, in our Discord server, or in our growing Reddit community!

Bon appétit!

_The Chef's 🐰🥞_



PancakeSwap March Recap

GM PancakeSwap Community,

We are excited to announce that PancakeSwap has teamed up with Stryke (formerly Dopex) to introduce CLAMM Options Trading. This product allows the building of on-chain options liquidity and enables users to seamlessly trade options, earn premiums, and earn swap fees. This collaboration represents a significant leap forward in decentralized finance (DeFi), merging PancakeSwap's robust platform with Stryke (formerly Dopex)'s cutting-edge options protocol.

### **Overview of PancakeSwap’s CLAMM Options**
PancakeSwap’s American-style CLAMM options will debut on the Arbitrum chain, offering flexibility with diverse expiry durations (1 hour to 24 hours).
- Markets: ARB/USDC, WETH/USDC, and WBTC/USDC
- Options Types: Call & Put
- Strike Prices: Based on v3 pool ticks
- Expiry Durations: 1H, 2H, 6H, 12H, and 24H
- Exercise Conditions: Exercising positions before closure to avoid in-the-money options expiring worthless. Users can choose to enable auto-exercise to skip further actions and realize profits automatically at expiry. 

 ### **What are Options?**
![trading-campaign (34).jpg](https://sgp1.digitaloceanspaces.com/strapi.space/9391f82952ac74a1d01a4d5d0b5865f6.jpg)
Options are derivative contracts that grant buyers the right, without obligation, to buy or sell an asset at a predetermined strike price in the future. Option buyers pay a premium for this right. If market conditions are unfavorable, option buyers can let the option expire, limiting potential losses to the premium paid. Conversely, if the market moves favorably, the option can be exercised to realize profits.

Options are generally categorized into "call" and "put" contracts. With a call option, the contract buyer acquires the right to buy the asset at a predetermined strike price. With a put option, the buyer can sell the asset at the predetermined price.

### **Key Terminologies**
- Option Positions: Long (buying) or short (writing/selling), call or put options.
- Strike Prices: Locked-in prices for buying (call) or selling (put) the asset at the settlement date/expiry time.
- Expiry: Represents the time till the options contract is valid. Net settlement happens at expiry or on exercise.
- Premiums: The fee received by option sellers and the cost incurred by option buyers.
- American option: Options contract that allows traders to exercise the option rights at any time before and including the expiration day.
- Option Moneyness: This is determined through the relationship between the strike price and asset price. It is used to classify if a strike price is In-the-money (ITM), At-the-money (ATM), or Out-of-the-money (OTM).
- A call option is ITM if the asset price exceeds the strike price. A put option is ITM if the asset price is below the strike price. If a user has purchased an option at a strike that goes ITM, the user will earn profits (excluding cost of buying i.e. premium) by exercising the option.  
- A call option is OTM if the asset price is below the strike price. A put option is OTM if the asset price exceeds the strike price. OTM strikes have no intrinsic value, so exercising doesn’t make sense.

### **Types of Options:**
1\. Call Option (Buy):
- Buyers: Gain the right to buy the asset at a predetermined strike price on a specified date, with potential profits if the price exceeds the strike.
- Sellers: Undertake the obligation to sell the asset, receiving upfront premiums but facing potential losses if the asset's price rises beyond the strike.

**Example**
![trading-campaign (28).jpg](https://sgp1.digitaloceanspaces.com/strapi.space/9d89c11117be0a391a3d3303684ad803.jpg)
- On February 1, 2024, Alice initiated a buy call option at a $2,000 strike price and a $200 Option Premium. After 24 hours, Ethereum rose to $2,500. Now Alice exercises her buy call option, purchasing Ethereum at the strike price of $2,000 (lower than the current market value). Her profit is $2500 - ($2000 - $200), totaling $300, making her position in the money (ITM). 
- On the flip side, the seller, Bob, incurs a loss of $300 as Alice exercises her right to purchase Ethereum at the strike price (lower than the current market price), so he has to sell his Ethereum at the strike price of $2000, which is lower than the current market price marked at $2500.

**Risk/Reward**
![trading-campaign (29).jpg](https://sgp1.digitaloceanspaces.com/strapi.space/e3bdff0c2f38f488ac8fb40867f453e3.jpg)
The trader's (Alice) potential loss from buying a call option is limited to the premium paid. Potential profit is unlimited due to the increasing option payoff and the underlying asset price until expiration.

2\. Put Option (Sell):
- Buyers: Secure the right to sell the asset at a predetermined strike price, anticipating a decrease in the asset's price.
- Sellers: Accept the obligation to buy the asset, earning upfront premiums but facing potential losses if the asset's settlement price is lower than the strike price.

**Example**
![trading-campaign (30).jpg](https://sgp1.digitaloceanspaces.com/strapi.space/4ec80a5cce517c10c75855f54bec824f.jpg)
- Alex initiates a buy put option on February 1, 2024, with a $2,500 strike price and a $250 Option Premium. On February 2, 2024, Ethereum drops to $2,000. Alex exercises his buy put option, selling Ethereum at the strike price of $2,500 (higher than the current market value). Resulting in a $250 profit, $2500 - ($2000 - $250), making his position in the money (ITM). 
- On the flip side, the seller, Dave, incurs a loss of $250 as Alex exercises his right to sell his Ethereum at the strike price (higher than the current market price), so Dave has to buy Alex’s Ethereum at the strike price of $2500, which is higher than the current market price marked at $2000

**Risk/Reward**
![trading-campaign (33).jpg](https://sgp1.digitaloceanspaces.com/strapi.space/1df52b39dfea566a7ccd9117d194e371.jpg)
The potential loss on buying a put option is limited to the premium paid for the options. The maximum profit from the position is capped because the underlying price cannot drop below zero; options are a highly leveraged instrument, and even a capped upside return when buying put options allows users to maximize gains on their capital.

### **Decoding the CLAMM Options: A Liquidity Game-Changer**

Crafted by the Stryke (formerly Dopex) team, the CLAMM options protocol introduces an efficient dual liquidity provision system for options traders (buyers) and PancakeSwap v3 pools. Here's a breakdown of how it operates:
- **Liquidity Addition:** Users adding liquidity to CLAMM options simultaneously contribute to the designated PancakeSwap v3 (CLAMM) pool within their chosen price range.
- **Options Trading:** When an options trader (buyer) initiates a position, the liquidity is extracted from the v3 pool to facilitate options selling. The user thereby becomes an options seller and receives a premium.
- **Idle Liquidity Management:** The unutilized liquidity resides in the PancakeSwap v3 pool, potentially earning trading fees as long as the pool price remains within the liquidity range.
- **Consistent Payoff:** The payoff from selling options and providing liquidity in a v3 pool mirrors the same IL or token balance, ensuring users face no increased risk compared to the conventional method of adding liquidity to v3 pools.
- **Minimal Risks:** Users face fewer risks, as liquidity might remain un-utilized due to lower options buying demand. Additionally, since liquidity is added to the pool in an inactive range, it might not earn any fees.

Refer to our **[step-by-step guide](https://blog.pancakeswap.finance/articles/how-to-provide-liquidity-on-pancake-swap-s-clamm-options)** on how to add liquidity to PancakeSwap CLAMM Options.

### **How Can I Start Trading Options on PancakeSwap?**

Refer to our **[step-by-step guide](https://blog.pancakeswap.finance/articles/how-to-trade-options-on-pancake-swap)** for participating in PancakeSwap’s Options Trading.

### **The Start of Something Even Bigger**
This collaboration marks a significant stride forward, delivering diverse trading opportunities for users and elevating fee-earning potential for liquidity providers. Join us on this transformative journey as we redefine DeFi trading with PancakeSwap and Stryke (formerly Dopex), where each trade unfolds new possibilities and rewards.

Stack’em

The Chefs

PancakeSwap has teamed up with Stryke (formerly Dopex) to introduce CLAMM Options Trading.

Introducing CLAMM Options Trading on PancakeSwap in Collaboration with Stryke (formerly Dopex)

In our March 2024 report, we explore the world of CAKE token supply management on PancakeSwap. Learn how PancakeSwap reduces the total supply of CAKE through strategic burns and the pursuit of ultrasound CAKE.

### **CAKE Total Supply Reduction:**
As of  April 2nd, 2024, PancakeSwap has successfully burned 0.189% of the CAKE total supply for March 2024. To calculate this percentage, we divided the total net mint of -731,042 CAKE by the initial total CAKE supply on March 4th, 2024. This marks the seventh consecutive month of CAKE total supply reduction, with a cumulative -2,103,059 CAKE net mint over September, October, November, December 2023, January, February, and March 2024. 

### **Achieving CAKE Total Supply Reduction through Net Minting:**
In April 2024, PancakeSwap achieved a net mint of -731,042. This negative net mint indicates that more CAKE tokens were burned than minted during the month.

### **March Mint Breakdown**
- Farms: 816,702
- CAKE Syrup Pool: 117,600
- Other Product Usage: 123,962
- Total March Mint: 1,058,264

_Please note that we have excluded CAKE mints that directly contribute to burning, calculating the mint based on raw CAKE/block emission (including emission changes over the months) for a precise monthly mint estimate._

### **March Burn Categories**
- Swaps and Perpetual Trading Fees: 1,470,456
- Prediction: 190,134
- Pancake Protectors: 5,296
- Lottery, NFT Market, Profile & Factory: 123,420
- Total March Burn: 1,789,306

_Note: To ensure accuracy, we pro-rate weekly CAKE burns over two months. For example, burns occurring at the end of March and stretching into April receive a proportionate allocation between the two months._

### **Proof of Burn for March:**
- March 6: **[Link](https://bscscan.com/tx/0xddfc376c4cf0b13d02cc5feaaebbe084be4529a9c5db69be09777369dc312681)**
- March 11: **[Link](https://bscscan.com/tx/0xdf7c1def8b6f00e7a9c31e381fc045f82a4d53172f132c6e9098806293613abf)**
- March 18: **[Link](https://bscscan.com/tx/0xa5861c373be4ae42126094baea795553fb3c96994d8ca69ee2f650fb47124ac4)**
- March 25: **[Link](https://bscscan.com/tx/0x36d7c2768daca14123ac8d00882ff69ad826340557adbd1ab8f1fa2e3f6daad4)**
- April 2: **[Link](https://bscscan.com/tx/0xa486253829e13db5851890a04fd1bef6583b4092ff13d8e572bbd715deeb78a9)**

In our March 2024 report, we explore the world of CAKE token supply management on PancakeSwap.

March 2024: PancakeSwap's CAKE Burn

PancakeSwap's journey began with a simple AMM model and has evolved into a leading multichain DEX offering a suite of DeFi products. Since the launch of PancakeSwap in 2020, we've achieved remarkable milestones: 711B in total volume, 1.8M active users, 2.24B total value locked, and expansion onto nine chains.

While PancakeSwap v3 brought improvements, such as enhanced capital efficiency for traders and optimized yield generation for liquidity providers (LPs), it lacked composability for leveraging PancakeSwap’s liquidity and user base. Additionally, it didn't offer seamless integration for developers and DeFi protocols to create customized features for liquidity pools or introduce new pricing curves tailored to specific assets or market demands.

Today, we're thrilled to unveil PancakeSwap v4, a groundbreaking iteration designed to address these challenges head-on. Our **[codebase](https://github.com/pancakeswap/pancake-v4-core)**  is open-sourced, inviting developers to explore and contribute. Technical details are available in the **[whitepaper](https://github.com/pancakeswap/pancake-v4-core/blob/main/docs/whitepaper-en.pdf)**, with comprehensive **[documentation](https://developer.pancakeswap.finance/)** to support integration and development efforts.

The DEX is scheduled to launch in the third quarter of this year on Ethereum and BNB Chain, with intentions to expand to additional chains in the future. Developers can begin building and engaging with our platform immediately.

### PancakeSwap v4 Vision: Beyond a DEX

Our vision for PancakeSwap v4 extends beyond just a DEX upgrade. We aim to foster the most comprehensive flexibility and functionality within the AMM space, built together by the Kitchen and DeFi developers in the crypto community. Hence, PancakeSwap v4 code will be released under an open-source license.

Addressing the shortcomings of current AMMs, including inflexibility in pricing models for all assets, lack of CEX-level execution functions, impermanent loss for liquidity providers, and pricey on-chain gas fees for users, is paramount to our mission.

Furthermore, PancakeSwap v4 will enhance the DEX experience and complement with existing and upcoming features, like veCAKE, enabling PancakeSwap to evolve into the highest-functionality DeFi platform.

### **Key Features of PancakeSwap v4:**

#### **Hooks: Tailored Features and Fee Management**

Externally deployed contracts, known as hooks, can be integrated to enhance the functionality of swaps and liquidity pools. These contracts, deployed separately from the core AMM logics and pool managers, act as customizable add-ons, enabling developers and protocols to execute predefined logic during key pool and swap actions.

The possibilities are endless with hooks – from dynamic fees, order types, custom oracles, active liquidity management modules, and more. Additionally, fees can be imposed on actions like swapping and liquidity withdrawals, with the flexibility to collect the fees as a hook creator or distribute them to stakeholders.

#### **Custom Pool Types and Donate: Empowering Liquidity Provisioning & Incentivisation**

At launch, PancakeSwap v4 supports multiple pool types, including CLAMM and Liquidity Book. The architecture offers flexibility to incorporate any new AMM design to address current AMM models' drawbacks or cater to new types of assets that may be priced better by new curves.

In PancakeSwap v4, we implement the innovative Liquidity Book AMM alongside the widely adopted CLAMM design. While CLAMM follows the X*Y = K formula, the Liquidity Book AMM operates on a constant sum formula: X + Y = K. The liquidity is stacked in price bins rather than following a uniform distribution across a price range, as in the CLAMM design. This allows for liquidity to be deposited in various shapes.

#### Liquidity Book AMM:

Utilizing a constant sum formula within each bin ensures that traders benefit from 0 price impact trades within a bin, eliminating impermanent loss (IL) for LPs.

The fungibility of liquidity makes position adjustments cost-effective for LPs, supporting single-sided liquidity provisioning and enabling native limit orders akin to an order book model. This is the first Liquidity Book AMM implementation supporting hooks, allowing developers to introduce tailored features and optimizations to these pools.

**Donate:** The Donate method empowers stakeholders to incentivize in-range LPs, fostering the liquidity ecosystem.

#### **Singleton and Flash Accounting: Gas Optimization Techniques**

In contrast to  v3, where each pool requires a separate contract, v4 consolidates all pools into a single contract (singleton), reducing the deployment cost by 99%.  Gas cost is further reduced for multi-hop swaps as there is no need to transfer tokens between separate contracts.

Flash Accounting optimizes the accounting process by computing net balances for a batch of transactions and settling them collectively, reducing gas consumption compared to previous models. It relies upon a lock mechanism to update internal net balances before executing external transfers, minimizing gas fees for multi-hop transactions. Enabled by EIP-1153, Flash Accounting benefits from "Transient Storage," which stores data temporarily, avoiding serialization costs associated with permanent storage, thus enhancing cost-effectiveness.

#### **Open-Source Licensing**

Our v4 mission is crystal clear: to champion open-source principles and uplift the entire DeFi landscape. We're proud to announce that PancakeSwap v4 code will be released under an open-source license, empowering developers to innovate, customize, and collaborate freely. To facilitate the rapid adoption of PancakeSwap v4 across multiple chains, DeFi protocols forking PancakeSwap under the **[Affiliate initiative](https://forum.pancakeswap.finance/t/discussion-on-pancakeswap-affiliates-a-multichain-expansion-strategy/395)** will be warmly welcomed and officially recognized by the Kitchen. Join us in building a more inclusive and vibrant DeFi ecosystem for all.

#### **$500,000 Developer Program**

With the introduction of PancakeSwap v4, we're committed to providing developers with the resources and support to thrive in the DeFi landscape. Hence, we are launching a $500,000 Developer Program to encourage innovation, creativity, and collaboration within the developer community through Growth Campaigns, Hackathons, a Developer Ambassador Program, and a CAKE Emissions Grants Program.

As part of the CAKE Emission Grants Program: PancakeSwap will allocate CAKE emissions to developers building hooks and other promising solutions on PancakeSwap v4. More details on this initiative will be announced in the coming months.

For more details of the Developer Program, please refer to our official announcement **[here](https://blog.pancakeswap.finance/articles/introducing-pancake-swap-s-500-k-developer-program-and-cake-emissions-grant-program?utm_source=v4announcementblog&utm_medium=blog&utm_campaign=v4announcementblog&utm_id=v4announcementblog)**.

#### **What's Next for v4?**

The DEX is scheduled to launch in the third quarter of this year on Ethereum and BNB Chain, with intentions to expand to additional chains in the future. Developers can start building on PancakeSwap immediately by reading the v4 whitepaper and codebase. To get started or learn more about PancakeSwap v4, visit our **[v4 website](https://pancakeswap.finance/v4?utm_source=v4announcementblog&utm_medium=blog&utm_campaign=v4announcementblog&utm_id=v4announcementblog)**. 

The Chefs



#### **PancakeSwap v4 Directory**

[**PancakeSwap v4 page**](https://pancakeswap.finance/v4)

[**Introducing PancakeSwap v4: For Developers, Traders & Every User**](https://blog.pancakeswap.finance/articles/introducing-pancake-swap-v4-for-developers-traders-and-every-user)
 
[**PancakeSwap v4 Whitepaper**](https://github.com/pancakeswap/pancake-v4-core/blob/main/docs/whitepaper-en.pdf)

[**PancakeSwap v4 FAQ**](https://blog.pancakeswap.finance/articles/pancake-swap-v4-answering-all-your-questions-about-v4)

[**Mochi's vision for PancakeSwap v4**](https://blog.pancakeswap.finance/articles/chef-mochi-s-vision-for-pancake-swap-v4-a-leap-forward-in-de-fi-innovation)

[**Why should Developers build on PancakeSwap v4 and How to build Hooks**](https://blog.pancakeswap.finance/articles/why-should-developers-build-on-pancake-swap-v4-and-how-to-build-hooks)

[**Introducing PancakeSwap’s $500K Developer Program and CAKE Emissions Grant Program**](https://blog.pancakeswap.finance/articles/introducing-pancake-swap-s-500-k-developer-program-and-cake-emissions-grant-program)

[**What’s in it for Developers, DeFi Protocols, Traders, and Liquidity Providers**](https://blog.pancakeswap.finance/articles/everything-you-need-to-know-about-pancake-swap-v4-what-s-in-it-for-developers-traders-liquidity-providers-and-defi-protocols)

[**PancakeSwap v4 Developer Docs**](https://developer.pancakeswap.finance/)

PancakeSwap's journey began with a simple AMM model and has evolved into a leading multichain DEX offering a suite of DeFi products.

Introducing PancakeSwap v4: For Developers, Traders & Every User

We are excited to announce our Developers Program, an initiative to empower and support developers in the DeFi ecosystem. With $500K USD allocated, our program is designed to foster innovation, creativity, and collaboration within the developer community.

#### **Why a Developers Program?**

As PancakeSwap continues to evolve as a leading multichain DEX, we recognize the developer's critical role in driving innovation and enhancing user experiences. With the launch of PancakeSwap v4, we're committed to providing developers with the resources and support they need to thrive in the DeFi landscape.

The PancakeSwap Developers Program includes a range of initiatives aimed at nurturing talent, driving growth, and advancing the boundaries of DeFi. Here's a glimpse into some of the key initiatives:

**1. CAKE Emission Grants Program:** We will allocate CAKE emissions to developers building hooks and other promising solutions on PancakeSwap v4. More details on this initiative will be announced in the coming months, so stay tuned for updates! If you're already  building hooks with early ideas, feel free to submit your hooks in advance **[here](https://pancakeswapforms.fillout.com/PancakeSwap_Hooks_Submission)**.

**2. Hackathons:** PancakeSwap will organize and sponsor hackathons to inspire developers to build on PancakeSwap. We are excited to host our **[first-ever hackathon](https://ethglobal.com/events/london2024/prizes#pancakeswap)** as a part of the PancakeSwap Developers Program at ETH London with a 10,000 USD prize pool; this hackathon will allow developers to showcase their creative hooks ideas.

**3. Developer Ambassador Program:** Our program will enable passionate individuals to represent PancakeSwap within their communities to drive awareness, education, and adoption of PancakeSwap among developers. Our Dev ambassadors will play a key role in supporting developers through forums and [Discord channels](https://discord.com/channels/897834609272840232/1207724381212770315) and providing developer resources, ensuring that developers can access the tools and support they need to build.

**4. Bounty Campaigns:** Developers can participate in our [**bounty campaign**](https://docs.pancakeswap.finance/developers/bug-bounty) to earn rewards for completing specific tasks, from bug bounty to feature enhancements and protocol optimizations. We will offer incentives for valuable contributions that enhance our platform's user experience and security.

**5. Growth Campaigns:** Our growth campaigns will focus on expanding the reach of PancakeSwap among developers worldwide and engaging developers through targeted marketing efforts, community outreach, and educational content to expand our developer ecosystem to onboard new talent and cultivate a vibrant developer community.

**6. Educational Initiatives:** Through educational initiatives such as workshops, webinars, and tutorials, we aim to empower developers with the knowledge and skills needed to succeed in the fast-paced world of DeFi.

**7. Networking Events:** PancakeSwap will host and sponsor networking events, meetups, and conferences where developers can connect, collaborate, and share ideas. These events provide invaluable opportunities for networking, learning, and professional growth within the DeFi community.

#### **Join Us in Building the Future of DeFi**

The PancakeSwap Developers Program marks a significant milestone in our journey to support developers and fuel breakthroughs in DeFi. Whether you're an experienced developer or just starting your journey, we invite you to join us in shaping the future of DeFi.

Stay tuned for more updates and announcements on [**Twitter**](https://twitter.com/PancakeSwap) and **[Discord](https://discord.com/channels/897834609272840232/1207724381212770315)** as we roll out the various initiatives under the PancakeSwap Developers Program.

The Chefs


#### **PancakeSwap v4 Directory**

[**PancakeSwap v4 page**](https://pancakeswap.finance/v4)

[**Introducing PancakeSwap v4: For Developers, Traders & Every User**](https://blog.pancakeswap.finance/articles/introducing-pancake-swap-v4-for-developers-traders-and-every-user)
 
[**PancakeSwap v4 Whitepaper**](https://github.com/pancakeswap/pancake-v4-core/blob/main/docs/whitepaper-en.pdf)

[**PancakeSwap v4 FAQ**](https://blog.pancakeswap.finance/articles/pancake-swap-v4-answering-all-your-questions-about-v4)

[**Mochi's vision for PancakeSwap v4**](https://blog.pancakeswap.finance/articles/chef-mochi-s-vision-for-pancake-swap-v4-a-leap-forward-in-de-fi-innovation)

[**Why should Developers build on PancakeSwap v4 and How to build Hooks**](https://blog.pancakeswap.finance/articles/why-should-developers-build-on-pancake-swap-v4-and-how-to-build-hooks)

[**Introducing PancakeSwap’s $500K Developer Program and CAKE Emissions Grant Program**](https://blog.pancakeswap.finance/articles/introducing-pancake-swap-s-500-k-developer-program-and-cake-emissions-grant-program)

[**What’s in it for Developers, DeFi Protocols, Traders, and Liquidity Providers**](https://blog.pancakeswap.finance/articles/everything-you-need-to-know-about-pancake-swap-v4-what-s-in-it-for-developers-traders-liquidity-providers-and-defi-protocols)

[**PancakeSwap v4 Developer Docs**](https://developer.pancakeswap.finance/)

We are excited to announce our Developers Program, an initiative to empower and support developers in the DeFi ecosystem.