New CAKE Emissions: Boost for Infinity Hooks

PancakeSwap (CAKE) Infinity unveiled a fresh CAKE Emission Program which hopes to pump life into Hook-based liquidity pools. 

In otherwords, if you’re a developer who’s been busy crafting cool, custom Hooks - you can apply for CAKE rewards to incentivise people to trade in your pools. Liquidity providers (LPs) who provide tokens to such pools are also receiving CAKE incentives the moment they stake, so you don’t need to do anything else.

Why bother? 

Well, Hooks demand strong liquidity to shine. Not even a killer Hook that promises fancy trading perks will go very far if there’s no liquidity behind it. That’s where this program comes in. PancakeSwap is diverting 0.05 CAKE per block (roughly 1440 per day from its Ecosystem Growth fund - no new CAKE minted. 

These emissions will be shared between the top performing pools on Hook, based primarily on which ones generate the most fees for the Chainlink (LINK) -fueled El Dorado.

For LPs, this is a win. They can participate in a Hook-based pool and earn CAKE from trading fees. 

Some Hooks might even reduce impermanent loss, but that is up to the developer’s design. Developers, meanwhile, receive assistance in sourcing liquidity, as well as visibility on the platform and some marketing love. 

And if you’re a developer eager to launch a new Hook, go ahead and apply. The CAKE spigot will be green lit after a vetting from the PancakeSwap team as to its potential synergy and utility.

Also See: Stablecoins Surpass Card Giants

For updates and corrections, email newsroom[at]stocktwits[dot]com.