PancakeSwap burns 6,721,761 $CAKE tokens, equivalent to $72M USD!
PancakeSwap, a massively popular decentralized exchange (DEX), burned $72 million USD worth of CAKE in the latest token burning event. On January 10th, PancakeSwap tweeted about the token burn.
🔥 6,721,761 $CAKE burned – that’s $72M!
💰 355k CAKE ($3.8M) bought back from market (Trading, Prediction, NFT Market)
🔒 NFT Profile, Auto&IFO Pool Fees: 36k CAKE ($390k)
🎟️ Lottery: 36k CAKE ($382k)
🔨 Auction: 17k CAKE ($178k)
— PancakeSwap 🥞 #BSC (@PancakeSwap) January 10, 2022
According to PancakeSwap, a total of 355k CAKE tokens worth $3.8 million were bought back from the market this week, including trading, NFT, and prediction marketplace accounting for the majority of the tokens burned.
About CAKE Token Burn
As part of its deflationary mechanics, PancakeSwap schedules a token burning every week. CAKE generates approximately 530,000 new tokens every day, through liquidity farming and staking pools. When users trade or harvest yield on the platform, the exchange burns small amounts of tokens to prevent supply from outstripping demand. Every Monday, PancakeSwap does a manual token burn.
PancakeSwap is the leading DEX on the BSC, with the greatest trading volumes in the market. It has various features for its users such as:
- Liquidity Pools
- Yield Farming
- Syrup Pools
- Automated Market Maker
- Initial Farm Offering (IFO)
- NFT profile system
Furthermore, the protocol assists users in getting the most out of their crypto assets through:
- yield farming
- NFT collections
The CAKE token from PancakeSwap is a BEP20 token that was first launched on Binance Smart Chain. CAKE’s main aim is to encourage people to provide liquidity to the PancakeSwap platform.
In addition, users can receive rewards by staking their tokens, which you do by depositing and locking Liquidity Provider tokens. This is referred to as farming, and it is rewarded with CAKE tokens by the system. With no holding time, the tokens can be un-staked. CAKE allows users to invest in the future and boost their earnings, but it comes with risks.
When the exchange was at its peak of popularity, CAKE hit a high of $47.68 in April. Binance Smart Chain usage increased at the time, as traders and yield farmers looked for alternatives to Ethereum.
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