Hassan Maishera
On Tuesday, the Pancakeswap team told its community via X that it had a deflation of 747k CAKE ($978k), up 28% from the previous week. The deflation figure follows the burning of 404k CAKE ($529k) by AMM V2, up 27%, and the destruction of 196k CAKE ($257k), up 27%.
AMM Infinity also destroyed 48.3k CAKE ($63k), up 119%. Other Sources (Prediction, Perpetual, etc.) burned 98k CAKE ($129k), up 9%.
In April 2023, PancakeSwap voted to transition to a deflationary token model called "Ultrasound CAKE." The protocol passed a proposal called CAKE Tokenomics v2.5 to create a structure combining real yield (no supply impact) and reduced token emissions. Over 102% of minted CAKE is burned weekly. This is intended to provide a multi-year runway for emissions and incentivize locking up CAKE, making the token more valuable long-term.
PancakeSwap has an anonymous team of “Chefs,” working in the PancakeSwap “Kitchen.” The platform is open-source and has been audited by multiple reputable blockchain security firms like Peckshield and Slowmist.
PancakeSwap is a BNB Chain-based decentralized exchange (DEX) with an automated market maker (AMM) model for swapping BEP-20 tokens. Pancakeswap was originally built on the BNB Chain and allows users to trade tokens without using a centralized exchange. It provides an array of products, such as:
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An exchange to swap tokens
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A yield farm to earn rewards
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Syrup pools to stake CAKE tokens
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Ethereum liquid staking (wBETH) and simple staking
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Pancake Protectors game
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v3 position manager (new feature)
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A prediction market
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Initial Farm Offering (IFO) token launches
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A bridge to bridge CAKE to Ethereum and Aptos
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A lottery
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An NFT marketplace
CAKE is up 6.7% today and is currently trading at $1.34.
