Good afternoon PancakeSwap community and CAKE holders!🐰
Here’s a recap for those who missed the live AMA on January 9th.
The chefs had a chat about what lies ahead for PancakeSwap in the first quarter of the year, answered questions from the community, and had a good time.
If you don't want to miss out on these kinds of events, we suggest you activate notifications for PancakeSwap's social media channels!
-Chef Mochi 🧑 (Head Chef) -Chef Bun 🥟 (Product Manager) -Chef Icy (BD Lead - Joining In Spirit) -Chef Fran 🧉 (Community Manager) -Chef Momo 🐰(Product Manager)
Chef Fran🧉 was the AMA’s host.
Chef Mochi🧑: Hi everyone, welcome to our quarterly AMA. 2023 was an eventful year, and PancakeSwap went through multiple upgrades each quarter to become the best, all-in-one, multichain DeFi protocol out there.
Today, we look forward to PancakeSwap in 2024 as we talk about your questions for the Q1 roadmap. For 2024, the Kitchen looks forward to building on the tools that we built in 2023 and to adopt new technologies which will provide better and more seamless experiences for all DeFi users, whichever chain they're on.
1. Q. Chef Fran 🧉: When the veCAKE voting gauge was launched, the team used its voting power to ensure the important pools would get a good amount of rewards and that the change from the old system to the new one would be smooth. At what point does the team intend to back away from this and allow the gauge to be entirely market-driven?
A. Chef Bun 🥟: It depends on the progress of veCAKE adoption and how many of them actively joined the biweekly gauges weight voting. We can't provide an absolute date and time, but making CAKE emission more community-driven is undoubtedly on the roadmap and remains the goal we aim to achieve. Please note that with DEX being the most essential product of PCS, with almost every other product depending on it. Ensuring core trading pairs get the liquidity needed is crucial and benefiting the entire PCS.
2. Q. Chef Fran 🧉: Over the last eight months, the CAKE emissions have been reduced over several proposals. Are there any plans to reduce emissions more in the future?
A. Chef Mochi🧑: Yes. Long-term, the Kitchen intends to reduce emissions as much as possible while providing sufficient utilities to all liquidity providers. Given the enlarged ecosystem with veCAKE managers staking significant amounts of CAKE and being large DAO contributors to the PancakeSwap ecosystem, the Kitchen will also engage in wider conversations with them about how to balance CAKE emissions in ways that are beneficial to all parties and the long-term growth of the protocol.
3. Q. Chef Fran 🧉: Is there any plan to launch your own chain as Cakechain?
A. Chef Mochi🧑: There are currently no plans to do so as an independent PancakeSwap blockchain serves no benefit to the PancakeSwap protocol and its vision to be an all-in-one, DeFi, multichain protocol.
4. Q. Chef Fran 🧉: Does PancakeSwap plan to work more closely on the side of the inscriptions, as there is a lot of hype around it?
A. Chef Fran on behalf of Icy: I think more broadly, we are working closely with the BRC-20 ecosystem, such as MUBI, and also ORDS.
5. Q. Chef Fran 🧉: PancakeSwap is making good progress on Ethereum, consistently holding the 3rd or 4th position in terms of trading volume. How do you intend to advance to the 1st or 2nd rank by competing with leading DEX Uniswap or Curve? Also, what strategies are in place to compete with other DEX on other multi chains to get on top of the rank?
A. Chef Mochi🧑: This is a multi-faceted effort. The best DEXs on each chain are usually there because they're doing multiple things right. For PCS, because we're not a native DEX on any chain except for BNB Chain, we need to improve PCS's ability across multiple areas to slowly become a top DEX regardless of the chains we're on. This would mean more efficient business development processes, more responsive marketing, better tokenomics to support LPs, more scalable ways to obtain liquidity and trade, better UIUX, better and more products etc. In short, it's nothing short of making every aspect of the protocol better, while finding the best way to scale as fast as we can alongside the top native DEX.
6. Q. Chef Fran 🧉: The market is back, with numerous significant projects emerging, each with distinct narratives. Why isn't PancakeSwap organizing regular IFOs to provide more opportunities for CAKE holders?
A. Chef Fran on behalf of Icy: The pipeline is a bit better, but most project launches require KYC – so the increase in market activity has not lead to a proportional increase in good IFO candidates. But do stay tuned, we do have a few things in the pipeline :)
7. Q. Chef Fran 🧉: Many platforms offer airdrops to stakers in different assets. Is there a possibility of establishing an ecosystem where CAKE stakers can also receive similar airdrops?
A. Chef Mochi🧑: First of all, unlike many of these protocols, PancakeSwap is not a new protocol and cannot launch the CAKE token again. However, if the PancakeSwap protocol receives any airdrops from any parties, we will not hold it ourselves and return it all to stakers and considering how they've contributed to PancakeSwap's success.
8. Q. Chef Fran 🧉: What upgrades are planned for the DEX and veCAKE in this quarter? Are any significant enhancements expected for the DEX or veCAKE, or will they be regular minor upgrades?
A. Chef Bun 🥟: "Yes, both. I will not leak anything on the DEX part but for veCAKE, we have many upgrades like:
All of these take time because veCAKE is a sizable upgrade to CAKE utility, and it is designed to be built into every part of PancakeSwap. I'm pretty sure the final product is worth the wait.
9. Q. Chef Fran 🧉: How does PancakeSwap plan to maintain long-term deflationary tokenomics using the veCAKE model, while most defi tokens with a similar model tend to have high inflationary tokenomics? How will PancakeSwap manage this in the long run?
A. Chef Mochi🧑: PancakeSwap's veCAKE model is the only one in the crypto industry where the underlying DEX veToken is also operating on a deflationary model. We have been live with veCAKE for ~2 months and in November + December CAKE continues to stay deflationary. Therefore the statement that most other veTokens models are inflationary is true simply because other protocols have not decided to go deflationary, but our community has. There are many fundamental differences between PancakeSwap and other DEXs, one which is namely that the Kitchen has and will continue to make proposals to tune down emissions via the governance process where conditions are allowing. This is the year-long process that was run in 2023 which has allowed PCS to become deflationary in the first place, and is something that will continue to go on in 2024, though at a slower pace than in 2023.
10. Q. Chef Fran 🧉: Is PancakeSwap planning to expand onto additional chains like Solana, Sui, Sei, BRC20, etc. Some chains already have substantial volume, while others might emerge as prominent ones. Considering the growth prospects, will PancakeSwap extend its presence to more chains?
A. Chef Fran on behalf of Icy: "You're right that there is more activity on chains that we have not deployed on, and we try to be quite deliberate in terms of chain expansions.
There is a third way in terms of capturing volume from these chains, by bridging over popular tokens. We've done so with BONK (Solana), KUJI (Cosmos), and ORDS (BRC-20), so I think that's a nice balance so far."
11. Q. Chef Fran 🧉: How does .cake domain work and how can i get it?
A. Chef Fran on behalf of Icy: "A .cake domain name is represented by an NFT, and replaces your wallet address across all protocols integrated with Space ID, including on PancakeSwap. This means that when you visit these protocols, they will display your .cake domain name instead of the usual 0x... address. Additionally, it will provide extra PancakeSwap profile points, and unlock other unknown perks in future PancakeSwap quests and campaigns.
To be one of the first to obtain a .cake domain name, you can join our ongoing Galxe quests to be whitelisted for our Early Access round. This is where you can bid for and register your desired .cake domain name(s). After the Early Access round, we'll open up registration to every one, but there will very likely be special discounts and perks in the Early Access round so you won't want to miss out!"
12. Q. Chef Fran 🧉: Is there any dex enhancement related to v4? What exactly are you planning?
A. Chef Momo 🐇: The kitchen has been working on quite a few interesting upgrades that come under DEX enhancement. Broadly, these will make PancakeSwap more modular and customisable, acting as a base layer for other DeFi protocols to build upon. Along with optimising cost and execution for swappers and a smoother overall user experience across all PancakeSwap products. Stay tuned for announcements this Quarter!
13. Q. Chef Fran 🧉: How does the routine burning of cake coins affect demand, supply, and price?
A. Chef Mochi🧑: CAKE's tokenomics works on a fairly simple model. CAKE is emitted to various uses, like rewarding liquidity providers and stakers, and is burnt by the PCS protocol's buying and burning CAKE via revenues across its DeFi and gaming products. Recently, with veCAKE there have been many veCAKE managers which are accumulating CAKE to participate in the veCAKE ecosystem, so there's a new dynamic of protocols locking CAKE, but that's on a high-level how our token serves as utility in the ecosystem.
14. Q. Chef Fran 🧉: What innovative products can we anticipate from PancakeSwap in 2024 that could enhance user experience?
A. Chef Bun 🥟: Chefs have always been working hard to make PancakeSwap become the all-in-one DeFi platform for everyone, regardless of your skill-level. In 2024, apart from some shiny new products, it's worth mentioning that we will be spending efforts to optimise many of our existing products to enhance their user experience. Overall, PCS will become faster, simpler to use, and overall much more intuitive and beginner friendly.
1: Q. Is there any chance to see a CAKEVERSE?
A. Chef Mochi🧑: The concept is undeniably intriguing. Imagining a 'Cakeverse,' akin to a PancakeSwap-inspired world for exploration, adds a fascinating layer to the social dynamics. PancakeSwap itself boasts a rich social tapestry, and the gaming platform we've established is a testament to the interconnectedness of this community.
The recent launch of two games on our platform has drawn many players, forming a vibrant social following. While there isn't a specific roadmap for an open world where users can congregate, play, and interact, we envision such a space evolving organically from the PancakeSwap games platform in the long run.
Our ongoing discussions with various projects emphasize a growing emphasis on social interaction within gaming experiences. In the upcoming quarter, we have some exciting game releases planned. Although the immediate focus may not be on an expansive open world, it's a concept we foresee taking shape over time. As PancakeSwap evolves, we anticipate that users will seek more avenues to engage with each other. While it might not be an immediate development in the next quarter or two, the prospect of a space where PancakeSwap users can connect, converse, and play together is undoubtedly on the horizon and part of our long-term vision.
2: Q. Any new merchandise is coming in 2024?
A. Chef Fran 🧉: Absolutely, 2024 heralds a new chapter for us, bringing forth innovations across all our products. Anticipate the introduction of exciting new offerings throughout the year.
If you haven't explored our merchandise yet, visit https://merch.pancakeswap.finance Discover a range of items, from stylish t-shirts to cozy hoodies. As a highlight, we recently featured a special hat in celebration of our birthday!
3: Q. Can we talk a little bit about what more games are coming?
A. Chef Mochi🧑: I would like to mention that these projects are still in progress, and when it comes to works in progress, details are often kept under wraps until launch timelines become clearer. However, what I can share is our aim to introduce not just one, but hopefully multiple games in the current quarter, and we're striving for even more.
We're actively working to diversify the gaming experience on PancakeSwap. Presently, we have two games available, and our goal is to offer a range that appeals to everyone. This includes a mix of serious and casual games with different gameplay styles. So, in the upcoming quarter, we're focusing on broadening the variety of games on our platform.
If the current games on our platform don't align with your preferences, fret not. Without giving away too much, I can assure you that there might be something more tailored to your taste in the pipeline this quarter.
4: Q. As an individual user, how can I participate in the development of PancakeSwap? Is there any ambassador program to check?
A. Chef Bun 🥟: Our front-end and smart contracts are all verified. You can review the codes on blockchain explorers for transparency and safety, and it's also open for anyone looking to build on top of us.
The UI and front-end are also publicly available on GitHub. If you'd like to contribute, feel free to make any improvements or enhancements you think are appropriate and innovative, then submit them as a pull request.
Interestingly, many of the subtle UI improvements were actually made by our community and community developers, and we appreciate their contributions.
A. Chef Fran 🧉: Additionally, we're enhancing our ambassador program in 2024. Please DM me or reach out on any social platform if you have questions or are interested. Stay tuned for more news in the next couple of weeks.
5: Chef Bun Intermediation about Syrup Pools
A. Chef Bun 🥟: Some concerns have been raised regarding the potential discontinuation of the Syrup Pool product, especially considering there are currently only two pools left on the BNB Chain. The recent launch of veCAKE has introduced various incentivized markets, often referred to as 'bribing markets.' Which offers project token incentives if you have CAKE staked in veCAKE product.
In a nutshell, I want to clarify that pools are not being discontinued. With the market gaining momentum, we anticipate the introduction of more pools. However, I strongly encourage you to explore CAKE Staking and the veCAKE incentive markets, as they align closely with the Syrup Pool product. This presents an opportunity to explore these offerings and discover the overlapping benefits.
A. Chef Mochi🧑: I'd like to elaborate further on this. From a user's standpoint, especially for those accustomed to the Syrup Pool format, where staking Cake enables users to earn partner project tokens on a block-by-block basis, a similar mechanism is at play with the veCAKE system.
While the format may differ, the essence remains alike. Through voting incentive mechanisms, veCAKE Stakers are incentivized to participate in voting for liquidity pools of projects that are providing vote incentives via their tokens. In return, these partners reward you with their tokens, acknowledging your contribution to their liquidity. Essentially, by supporting a project's liquidity through voting, you are staking Cake and receiving project tokens—a process akin to the Syrup Pool.
Looking ahead, consider that Syrup pools and vote incentives could become alternatives for our partners, offering Cake Stakers different avenues to engage. This presents an enhanced version of the Syrup Pool, exclusive to loyal Cake holders who are veCAKE Stakers. Think of it as an evolved and proprietary experience that mirrors the familiarity of the Syrup Pool, providing a new and engaging dimension for our community, which we encourage you to explore.
6 Q: Are there any plans for increasing weekly rewards for veCAKE shareholders?
A. Chef Bun 🥟: I'll provide some clarification on certain aspects at the product level. Let's delve into the veCAKE share and its weekly rewards, which now comprise two components. Firstly, there's the portion derived from our trading revenue, also known as revenue sharing, accounting for 5% of the trading fees generated from V3 deployments from pairs with 0.05% and 0.01% fee tiers.
Now, moving on to the other part of the rewards. The veCAKE pool takes the place of the previous fixed-term CAKE staking pool, and its emissions are regulated by our gauge voting. To amplify the weekly rewards for veCAKE holders, or the veCAKE gauge. Therefore it is an encouragement for users to lock CAKE and participate in gauge voting. It's also worth noting that the emissions are currently under the control of all veCAKE stakers.
In essence, the CAKE weekly rewards blend trading revenue sharing and the CAKE pool, steering away from fixed-term staking pools. This innovative approach not only aligns with the community's engagement through voting but also places the emission control directly in the hands of veCAKE stakers. It reflects our commitment to a more dynamic and participatory ecosystem for our valued community members
A. Chef Mochi🧑: The veCAKE system encompasses revenue sharing and staking rewards determined by users' voting and staking activities. veCAKE holders now have additional avenues for rewards, requiring deeper engagement within the PancakeSwap ecosystem.
veCAKE holders can influence cake emissions for liquidity pools through voting, earning rewards from projects. Staking duration also plays a crucial role, with longer-term lock-ins yielding proportionately higher cake rewards and higher incentive rewards from partners due to higher veCAKE holdings.
External protocols that are building on PancakeSwap may offer opportunities aligned with these strategies. Exploring how longer-term stakers optimize their participation provides valuable insights. Deeper engagement in the PancakeSwap ecosystem, especially with the gauge product, unveils numerous possibilities for enhancing your role in the veCAKE system.
7 Q: When will the 300 million cake burn happen? And can we have a cake ultrasound money website?
A. Chef Mochi🧑: There seems to be confusion regarding the reduction of the max cap, so let's clarify. We held a vote at the end of last year to lower the theoretical maximum cap of the Cake token from 750 million to 450 million. Currently, there are approximately 385 or 386 million Cake tokens in circulation.
This adjustment means that the PancakeSwap protocol will not release more than 450 million tokens in the future. It's important to note that this doesn't involve PancakeSwap finding and burning 300 million tokens. Instead, these are tokens that were planned for emission previously but have not been released due to reductions in emissions last year, leading to a deflationary supply.
The decision to move from 750 million to 450 million emphasizes that the protocol will not exceed the 450 million mark. Looking ahead to 2024 and 2025, we may consider further reductions if deemed necessary, although this is a distant consideration
Thanks for reading. Join us on Twitter, Telegram, in our Discord server, or our growing Reddit community!
Chef Fran🧉