- PancakeSwap will launch vote-escrowed CAKE (veCAKE) and voting gauges in a few days.
- CAKE has seen increased distribution in the past few days.
Members of the PancakeSwap [CAKE] governance community have voted overwhelmingly in support of a proposal to introduce vote-escrowed CAKE (veCAKE) and voting gauges.
📣 Proposal for Launching veCAKE 🔒
🥞We propose to launch veCAKE over the next few days
🗳 Read the proposal and cast your vote for FREE: https://t.co/UYllbjpAEw pic.twitter.com/yayJpqJ2FE
— PancakeSwap🥞Everyone's Favorite DEX (@PancakeSwap) November 21, 2023
According to the proposal, the leading decentralized exchange plans to launch veCAKE to enhance governance for CAKE holders, increase liquidity across pools, and boost rewards for CAKE stakers.
First introduced by Curve Finance [CRV], the vote-escrowed model incentivizes holders to lock their tokens for extended periods. In exchange for the locked-up tokens, users are given “ve” tokens. These grant them increased voting power and protocol rewards.
On the other hand, voting gauges introduce a mechanism for allocating protocol-generated rewards to specific liquidity pools.
By allowing the community to influence reward distribution directly, voting gauges empower users to steer liquidity towards pools that align with their preferences.
Through its voting gauges, PancakeSwap seeks to give CAKE holders the right to decide on the future farm emissions of CAKE across the liquidity pools on the protocol.
As contained in the proposal, the voting gauges will be deployed in phases, beginning with liquidity pools on BNB Chain [BNB], Ethereum [ETH], and Arbitrum [ARB], offering around 0.99 CAKE per block in rewards.
With voting set to end in a few hours, 99.48% of community members have voted in support of the proposal.
CAKE sheds some gains
At press time, the protocol’s native token exchanged hands at $2.38. In the last 24 hours, the alt’s volume has declined by over 10%. Within the same period, trading volume has increased by 4%, according to data from CoinMarketCap.
This creates a price/volume divergence when an asset’s price and volume trend in opposite directions. In CAKE’s case, this divergence suggests that activity is predominantly on the selling side despite market activity.
The positioning of a number of key momentum indicators observed on a 24-hour chart lends credence to this position.
At press time, CAKE’s On-balance volume (OBV) trended downward — a position it has maintained since the 15th of November. CAKE’s OBV decline in the last week suggests a steady fall in token accumulation among spot market participants.
Read PancakeSwap’s [CAKE] Price Prediction 2023-24
Likewise, its Aroon Up Line (orange) inching closer to the center line signaled an ongoing reversal of October’s price uptrend.
As of this writing, CAKE’s Money Flow Index (MFI) inched toward its neutral line. It showed that selling activity continued to outpace buying activity as of press time.
Source: CAKE/USDT on TradingView
