Pancake Bunny Project Insight: Yield Farming Aggregator Revolving Around PancakeSwap

Pancake Bunny started as a means to maximize your $CAKE earnings which made it appeal to many. The vaults allow users to efficiently and seamlessly automate the yield farming experience.

By
Rich
on
March 14, 2021
Category:
BSC News

Introduction

The Pancake Bunny project started on the Binance Smart Chain (BSC) in October 2020. The team launched a yield optimization protocol to simplify the yield farming process for PancakeSwape users. Pancake Bunny utilizes vaults (smart contracts) to achieve this. The developers have remained anonymous but they are actively building the protocol.


Key Features

--Yield Optimization

--Liquidity Zaps

--Bonus Yields

--Cross-Chain Solutions


Pancake Bunny

The Pancake Bunny platform allows for auto compounding and yield optimization on all PancakeSwap LP pairs and $CAKE staking.  As an extra incentive, you will earn $BUNNY tokens on all of the available vaults (that you provided liquidity for).

There are three strategies in which users can choose to invest. $CAKE maximizer vault allows users to compound $CAKE and earn $BUNNY. Another option is to compound LP tokens using the protocols vault strategies. The vaults automate the entire yield farming process while simultaneously distributing $BUNNY tokens as a bonus. Finally, the Bunny Boost where users can stake $BUNNY or BUNNY/BNB LP to earn more $BUNNY tokens.

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The various vaults offer APY's (annual percentage yield) varying from 70% up to 2,300%. Users can choose from the following pairs or single token vaults:

Bunny Boost (earns $BUNNY):

BUNNY/BNB, $BUNNY

$CAKE Maximizer (earns $CAKE and $BUNNY):

CAKE/BNB, BTCB/BNB, ETH/BNB, BUSD/BNB, USDT/BNB, VAI/BUSD, USDT/BUSD, CAKE

Normal Compounding Vaults (grows your LP and earns $BUNNY):

CAKE/BNB, BTCB/BNB, ETH/BNB, BUSD/BNB, USDT/BNB, VAI/BUSD, USDT/BUSD


Liquidity Zaps

Pancake Bunny has made a function that can create a desired LP token with one click. The so-called “Zap” function allows for seamless liquidity provision. It makes use of the PancakeSwap AMM (automated market maker) which is used for all the available pairs. At no extra charge, this feature will save you the trouble of creating it yourself on the PancakeSwap AMM. Now you can create your LP by providing a single asset.

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Just select the pair that you want to create, select the deposit currency, and click Zap. Now you own LP tokens which you can use to farm or compound in the Pancake Bunny vaults.


Bunny Token


The $BUNNY token is the governance token of the Pancake Bunny project. It minted in proportion to the amount of performance fees generated, for everyone $BNB in fees five $BUNNY will be minted. This previously was ten $BUNNY per one $BNB but it was changed after a community vote. This resulted in a lowered emission schedule for the token. This has affected some of the vaults APY. To combat this the team has upped the APY on the Bunny Boost pools. This high yield on the Bunny Boost vault should be an incentive for users to lock their $BUNNY tokens in the contract. Resulting in an increase of value for the whole protocol.

There currently are 482,926 $BUNNY tokens in circulating supply with no hardcap. This is due to the token constantly being minted to further reward users in vaults. The reduced emission and the possibility of future token burn mechanisms aim to keep the tokens inflation in the tome.\

Editors note: The article initially stated the max supply was capped at 407,562,867, with a circulating supply of about half. This information was pointed out as incorrect and since been amended


Cross-Chain

Although not active yet, the Pancake Bunny platform is creating a protocol that allows cross-chain farming (Ethereum - BSC).

The feature would allow Ethereum users to dual farm, utilizing UniSwap liquidity and farming PancakeSwap. This bridge farm construction is an easy way to let Ethereum Users reap benefits from the BSC without them interacting with BSC themselves.

Although setting up a wallet for BSC is not rocket science, this feature could help people in getting more yield from their current holdings in Ethereum. As bridging assets is still not very easy to do, many have been hesitant to make the switch from Ethereum to BSC.

The development of the cross-chain farm will serve those people very well, getting yield from PancakeSwap on the Ethereum Network, amazing!

If you want to find out more about the upcoming cross-chain farms you can check out more in-depth information HERE



Future

The Pancake bunny project is far from finished, many new features and innovations are planned for the (near) future. As mentioned above the cross-chain farming will go live soon. The team also announced it will be adding other BSC projects next to PancakeSwap. This comes alongside more single asset vaults, one of which will be a $BNB vault.

Further plans include the creation of an investment dashboard, asset management, a mobile app, developing high-risk/reward pools, and the possibility to make arbitrage trades between BSC and Ethereum.


Conclusion

Yield optimizers are performing very well on the BSC. A large portion of their success can be attributed to the BSC's low gas fees. Unlike the Ethereum network, optimization strategies on the BSC can make multiple transactions at a nominal cost. The optimization process can be executed as often as necessary, this is, with the insane gas fees, impossible on the Ethereum Network.

Pancake Bunny started as a means to maximize your $CAKE earnings which made it appeal to many .Since its launch, this protocol has experienced a large amount of success. The vaults allow users to efficiently and seamlessly automate the yield farming experience. The fact you can choose from earning $CAKE or growing your LP is appealing to me. Furthermore, the extra incentive in the form of $BUNNY tokens is a cherry on top.

The development of new features such as the farm bridge shows that the project is active and innovative. Innovations like the new single asset vaults, farms, and partnerships promise more users and TVL (total value locked). In turn, these developments benefit the projects and their users.

Although there are many yield optimizers on the BSC I must say Pancake Bunny has something appealing to me, I like maximizing Cake.

Curious for more?  Check out pancake Bunny's website and social media pages.


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Rich

Richard is a multilingual writer, located in the Netherlands, husband and father, cryptocurrency and tech enthousiast enjoys long walks and bicycle rides. Fervent Binance Smart Chain projects promotor.

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