As PancakeSwap Updates Farm Rewards, AutoFarm Retires 7 PancakeSwap Vaults

PancakeSwap has proposed and is now launching an update reducing $CAKE emissions to 0 on certain farms. AutoFarm has then retired 7 vaults.

By
John Tunney
on
May 20, 2021
Category:
BSC News

Not Enough Syrup

Autofarm sent out a tweet on May 19th, advocating Autofarm users to withdraw their funds from the CAKE vaults that have been removed from Autofarm. 

The seven CAKE vaults include: 

  • mAMZN-UST
  • mNFLX-UST
  • mTSLA-UST
  • mGOOGL-UST
  • WBNB-HARD
  • WBNB-YFI
  • WBNB-UNFI

Deposits are unavailable for the now retired vaults. Despite the loss of farms, the PancakeSwap update looks very interesting. The updated proposal from PancakeSwap hopes to redirect rewards low liquidity, low volume farms and farms with excessive liquidity to key farms with low rewards making room for more “syrup pools.”

Source


A Goal and a Plan

The goal of the update is to add more new partners, syrup pools, and farms while at the same time maintaining a strong APR rate across all farms. 

The plan is to lower the dilution of rewards across all of the existing farms while adding new ones, combating what PancakeSwap has determined as inefficient liquidity. PancakeSwap feels the need to cycle out or remove farms that don't contribute enough volume.

PancakeSwap also feels that certain liquidity is not being utilized by traders. They have noted there is far more liquidity than is needed in the case of some of the more popular farms. There is also the issue of not enough liquidity/volume being provided due to lack of overall interest.

PancakeSwap has seen tremendous trading activity over the last 24 hours, leading the other platforms in the numbers. PancakeSwap hopes the update will draw more liquidity to their “syrup pools” and farms by focusing on more efficient liquidity pools 


Extra Syrup

The significance of the update should bolster PancakeSwap’s offering for yield farmers looking to invest in safer farms. The goal of adding farms to bolster liquidity could be a huge step in the right direction for PancakeSwap moving forward. It will definitely be interesting seeing how the update changes the “syrup pools'' and farms on PancakeSwap. We’re definitely going to be keeping our eyes on it. 


PancakeSwap

PancakeSwap is a decentralized exchange (DEX) on the Binance Smart Chain (BSC), which uses permission-less liquidity pools run by algorithms. This creates what is known as an automated market maker (AMM).

Autofarm

Autofarm is a cross-chain yield aggregator that enables users to get the return on their assets from yield farming pools by simply staking in Autofarm vaults. What separates AutoFarm from other farming projects is AutoFarm has some of the lowest fees in the market. AutoFarm has two main products: Vaults, which auto-compound yields and Swap, a DEX aggregator.

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John Tunney

John Tunney is an accomplished analyst and crypto enthusiast. The UCLA alum has been actively reporting and blogging for 3 years, and has a passion for all things finance.

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