DEX PancakeSwap to Distribute Fee Income Among CAKE Stakers

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PancakeSwap has announced that beginning August 9, holders of CAKE tokens can earn a 5% return from trading fees of the protocol.

This applies to all pairs on the third version of the exchange, where fees range from 0.01% to 0.05% of the total trading volumes, which account for up to 90% of the exchanges’s trading volume.

A minimum blockage period of 7 days is required to be eligible to receive the rewards and they will be paid out weekly.

This model seeks to ensure that the project’s tokenomics and value remain intact while reducing inflation and increasing the benefits for CAYE token holders.

This third version also enables liquidity providers to focus their capital on specific price ranges, in the same way that it is implemented in Uniswap v3.

At the time of this report, total trading volume on PancakeSwap v3 exceeds $12.5 billion, with the locked value in the protocol reaching $270 million.

The exchange also made an update to the platform in the Polygon zkEVM network.

Additionally, the developers proposed a change in the tokenomics of the project, that would move away from the current high-inflation model of CAKE tokens to a deflation or emission-neutral.

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