Cake War is coming, the BNB Chain ecosystem may迎来重大变革

Recently, the BNB Chain ecosystem is brewing an important event called "Cake War," which could give rise to a DeFi protocol worth billions of dollars. Multiple project teams have already begun to actively position themselves by launching activities such as depositing coins to receive airdrops to attract user participation. This article will delve into the origins, participation methods, and potential returns of Cake War.

Cake War Background Introduction

Cake has recently made significant upgrades to its token economic model, shifting from the traditional syrup pool mechanism to a veTokenomics system similar to Curve. The new model allows users to lock Cake to obtain veCake, which can be used to enhance LP yields and participate in governance voting to determine incentive distribution. This transformation introduces continuous bribery rewards into the system and creates opportunities for projects similar to Convex to compete for veCake shares.

The biggest advantage of Cake lies in its V3 version, which is a concentrated liquidity pool similar to Uniswap V3 (CLAMM). Unlike other DEXs with veTokenomics + CLAMM, Cake V3 allows users to freely deploy positions and provides corresponding incentives based on the concentration of liquidity distribution. This design effectively avoids the issue of exacerbated losses that may arise from a managed position model. Additionally, Cake supports trading modes of Uniswap V2 and Curve V1, catering to diverse liquidity needs.

How to Participate in Cake War

Currently, the main participants of Cake War include:

1. The sub DAO Cakepie launched by Magpie
2. Equilibria team incubated Skillet Finance
3. The most participated Stake DAO

Cakepie and Skillet have launched a coin deposit airdrop event similar to Blast, and have promised to provide additional IDO allocations. It is worth noting that Magpie has raised over 6 million dollars in Cake for Cakepie, leveraging the successful experience from the previous Penpie.

Cake War Revenue Estimate

Based on previous Pendle War experience, early participants may receive significant returns. However, there are many uncertainties in the Cake War, making it difficult to provide an accurate expectation. Roughly estimated, if the total market value of Cakepie reaches about 3 times that of Penpie, the total earnings of early participants could exceed ten million dollars.

The main factors affecting returns include:

1. Participants' TVL Scale
2. Airdrop Share
3. IDO Allocation Shares and Their Total Market Value
4. Expected total market value
5. Exit Loss/Decoupling Risk

Currently, the total market value and allocation shares of the IDO for all parties involved have not been determined, making precise calculations impossible. However, based on Pancake's TVL and daily token emissions, we can make a preliminary estimate of Cakepie's potential scale.

It is worth noting that compared to Pendle War, Cake War has more uncertainties. Participants should carefully assess the risks, especially the possibility of token decoupling.

Summary

1. Cake War is expected to bring a TVL of 1 billion USD to the BNB Chain, a Convex-like project with a total market value exceeding 100 million USD, which is expected to activate the entire ecosystem.

2. Early participants may achieve substantial returns in the short term, but need to be wary of decoupling risks.

3. Due to the presence of many uncertain factors, the specific development of Cake War still requires continuous attention.

4. One of the core competitive advantages of DEX is its business expansion capability, especially under the veTokenomics model which requires bribery for profits. Considering the resource advantages of the Binance system, the development of Cake War is worth looking forward to.