PancakeSwap has introduced a novel ‘Gauges’ voting system and phased out its vCAKE metric, introducing a new metric named ‘veCAKE.’ Notably, the decentralized exchange, currently ranking as the third-largest in terms of total value locked (TVL), has a TVL exceeding $1.4 billion at present, according to DefiLlama.
In a blog post dated November 22, PancakeSwap outlined the workings of its new Gauges voting system. Consequently, this system allows governance tokenholders to actively participate in voting for the distribution of extra rewards to specific pools.
Furthermore, the exchange’s native governance token, CAKE, is given as rewards to liquidity providers. It is governed by the decentralized autonomous organization CakeDAO, which includes all CAKE holders.
PancakeSwap’s Overhaul: veCAKE Voting, Syrup Pool Phase-Out, and Gauge Voting System
The innovative system permits CAKE holders to cast votes every two weeks to determine which pools will receive supplementary rewards.
However, the ability to vote hinges on the act of locking CAKE tokens into a smart contract for a specified duration. The duration of this lockup directly determines the voting power granted to participants.
Moreover, the newly introduced metric for measuring voting power is now called “veCAKE,” taking the place of the previous metric known as “vCAKE.”
Simultaneously, PancakeSwap has phased out its “syrup pool” reward system, formerly allowing CakeDAO members to stake CAKE for an additional share of the exchange’s fees. Moreover, the revised approach restricts additional fees solely to users possessing veCAKE.
The shift in strategy is designed to enhance the utility of the CAKE token. This ensures that only CAKE holders have the ability to influence the profitability of specific pools.
PancakeSwap’s Exclusive veCAKE System, Seamless Migration, and Industry Updates in November
The blog post emphasizes the exclusivity of the system. In this arrangement, veCAKE holders direct CAKE emissions toward pools where they have stakes. They earn extra CAKE emissions as their chosen pools gather more votes.
Additionally, to facilitate the migration from vCAKE to veCAKE, PancakeSwap’s interface has been updated. Subsequently, users can seamlessly transfer their staked CAKE into the new contract with a straightforward button-push and confirmation process.
Notably, PancakeSwap is not the only decentralized exchange making updates this November. On November 14, Uniswap launched an Android version of its mobile wallet. Similarly, on November 17, SushiSwap began testing native Bitcoin swaps across 30 networks.