PancakeSwap, the most reputable decentralized exchange (DEX) working on the BNB Chain, has come up with CakePad, a platform that would allow users to have the earliest access to token listings without any staking or lock-up requirements. The offering is a rebrand of the project’s Initial Farm Offerings (IFOs), which not only simplifies the participation regulations but also adds new ways for deflationary tokenomics to be interconnected with its native CAKE token.
As per the declaration from PancakeSwap, a non-staking i.e., any wallet holder can “commit CAKE” during the time of a token sale and after that, they are able to get the new tokens. CakePad differs from previous IFO models in that the staking or liquidity provision is not required, thus making it more like centralized exchange offerings such as Binance’s Launchpad and Launchpool in terms of its non-custodial design.
Source: The Block
One of the primary attributes of CakePad is the fact that it fundamentally embraces token burns. The DEX declared that the entirety of the participation fees gathered with CakePad would be Token Burns and Deflationary Mode, thus greatly helping CAKE’s long-term supply reduction targets. The exchange has drawn up its Tokenomics 3.0 plan which it aspires to result in around 4% yearly deflation and a supply reduction of 20% by 2030 at the latest via buyback-and-burn strategies.
In addition, PancakeSwap implemented a “fair tiered subscription tax” system that goes into operation in the event of oversold sales. The tax rate is lower as the oversubscription levels increase, with the idea of making a fairer distribution mechanism for the participants.
The inception of CakePad is timely as early-access token venues are gaining traction within the crypto industry. While centrally controlled exchanges have traditionally employed comparable models, PancakeSwap appears to be leveraging CakePad as a decentralized alternative with easier accessibility and a direct link to its deflationary tokenomics.
While PancakeSwap has yet to announce the first projects to debut through CakePad, the rollout highlights the exchange’s broader effort to increase CAKE’s utility. In recent months, PancakeSwap has remained one of the most active DeFi platforms, reporting $79.8 billion in trading volume in September despite an overall decline in global crypto spot exchange activity.
