PancakeSwap to share trading-fee revenue with CAKE token stakers

Decentralized exchange PancakeSwap is set to share a portion of its trading-fee revenue with stakers of its native token, CAKE, to enable them to earn more rewards.

PancakeSwap said, beginning Aug. 9, fixed-term CAKE stakers will receive 5% of the trading-fee revenue from all PancakeSwap v3 pairs — with 0.01% and 0.05% fee tiers — on a recurring and weekly basis. These two fee tiers account for 80-90% of PancakeSwap v3 trading volumes.

"Revenue sharing ties the CAKE token more directly to PancakeSwap's growth as a protocol," Chef Mochi, head chef of PancakeSwap, said in a statement. "Therefore, CAKE stakers' rewards are tied to the growth of PancakeSwap, and it is intended to be a long-term initiative that grows alongside the protocol."

PancakeSwap's revenue sharing program

Launched in 2020, PancakeSwap is the second-largest decentralized exchange by trading volume and market share after Uniswap, according to The Block's Data Dashboard.

Initially built on the BNB Chain, PancakeSwap has expanded on several blockchains, including Ethereum, Aptos and Polygon zkEVM. PancakeSwap's revenue-sharing program applies to all chains.

PancakeSwap sharing revenue with CAKE stakers means additional income for them, over and above staking rewards. Users joining PancakeSwap before Aug. 2 can claim trading fee rewards with the first distribution period of Aug. 9. Those joining after Aug. 2 and before Aug. 9 will be able to claim their rewards with the second distribution period on Aug. 16, and so on, PancakeSwap said.

Meanwhile, Cake stakers from June and July will also receive trading fee rewards for those months as a bonus starting from Aug. 9, PancakeSwap added.

"The Revenue Sharing Pool is designed to align with PancakeSwap's long-term vision of sustainability and community-driven growth," PancakeSwap said. "This model ensures that the value of CAKE is not diluted and enhances the benefits of holding CAKE. Additionally, it serves as a valuable tool to mitigate inflation."

CAKE token spiked 5% to $1.58, as of 9:30 a.m. ET, after the announcement came out. The native token of the Binance Smart Chain (BSC) DeFi exchange now has a market cap of $331 million.

Added token price update.