Hassan Maishera
On Tuesday, the PancakeSwap team told its community via X that it had a deflation of 496k CAKE ($705k), up 47% from the previous week. The deflation figure follows the burning of 220k CAKE ($312k) by AMM V2, down 7%, and the destruction of 229k CAKE ($325k), up 231%.
AMM Infinity also destroyed 18.3k CAKE ($26k), up 62%. Other Sources (Prediction, Perpetual, etc.) burned 29k CAKE ($42k), up 42%.
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:
-
An exchange to swap tokens
-
A yield farm to earn rewards
-
Syrup pools to stake CAKE tokens
-
Ethereum liquid staking (wBETH) and simple staking
-
Pancake Protectors game
-
v3 position manager (new feature)
-
A prediction market
-
Initial Farm Offering (IFO) token launches
-
A bridge to bridge CAKE to Ethereum and Aptos
-
A lottery
-
An NFT marketplace
CAKE is down 0.6% today and is currently trading at $1.43.
