PancakeSwap Implements Gauges Voting System and veCAKE Metric
The educational blog post explains the implementation of “Gauges,” a new voting system, during which PancakeSwap governance tokenholders can vote for additional rewards to specific pools.
PancakeSwap is the third-largest decentralized exchange (DEX) in terms of total value locked (TVL), with over $1.4 billion TVL at the time of the announcement. Its governance token, CAKE, is distributed as a reward to liquidity providers and is managed by a decentralized autonomous organization called CakeDAO.
vCAKE Metric Replaced by veCAKE
Under the new Gauges system, CAKE holders can vote for additional rewards every two weeks, but they need to lock their tokens into a smart contract for a specific period to gain the ability to vote. The voting power is now measured using a metric “veCAKE,” replacing the older “vCAKE” metric.
The announcement also mentioned the sunset of the “syrup pool” reward system and the transfer of additional fees solely to veCAKE users, aiming to increase the utility of the CAKE token.
Facilitating the Transition to veCAKE
To ease the switch from vCAKE to veCAKE, staked CAKE can now be transferred into the new contract by pressing a button and confirming the transaction on the exchange interface.
Hot Take
PancakeSwap, Uniswap, and SushiSwap, among others, continue to innovate and add new features, offering various options and opportunities for DeFi users in the crypto space.
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