PancakeSwap V2 Migration Vote

Ever relentless in its quest to maintain its position as the top Binance Smart Chain Automated Market Maker (AMM) and Yield Farm platform, PancakeSwap will upgrade to Version 2 for improved performance.

By
Ahamdi Abarikwu
on
April 23, 2021
Category:
BSC News


What Does PancakeSwap Version 2 Mean?

In the new move, PancakeSwap will move two of its existing smart contracts to new ones that are sweet upgrades to the previous ones. This update mainly entails the creation of new liquidity pool (LP) tokens. After the upgrade to Version 2, PancakeSwap's farms/exchange will end support for the old LP tokens.

Source: Medium 


Why The Need For Migration?

PancakeSwap's chefs are forward-thinking and keen to deliver the very best CAKE experience to users. The Chefs realized that two of Pancake's smart contracts, PancakeSwap Router and PancakeSwap Factory, cannot be upgraded. Their lack of upgrade capability meant that they could only handle limited features. For example, the platform's fee structure cannot be adjusted. Again, it was not possible to implement auto-compounding in Syrup pools. These were some limitations that needed to be overcome; the upgrade and migration became necessary.


What New Recipe Will Come To PancakeSwap As A Result?

Holders of CAKE and users of PancakeSwap have lots of benefits to expect, going by the words of one of the platform's co-founders, Chef Hops. He said that Version 2 would be like a "fridge of goodies" rather than a solitary benefit that the old platform was more like.

Specifically, the upgrade will make it possible for PancakeSwap to add more user-friendly benefits such as auto-compounding, referral campaigns, changes in the fee structure etc. 


Vote. Vote. Vote

PancakeSwap proposes four fee structures and has given the CAKE community the power to choose the one that would be applied. The proposals are as follows,

A: Split — 0.22% Trading Fee 

  • 0.15% LP token holders
  • 0.03% Treasury
  • 0.02% CAKE buyback and burn
  • 0.02% Distributed to CAKE holders
Source: PancakeSwap

B: Burn — 0.22% Trading Fee

  • 0.15% LP token holders
  • 0.03% Treasury
  • 0.04% CAKE buyback and burn

C: Big split — 0.25% Trading Fee

  • 0.17% LP token holders
  • 0.03% Treasury
  • 0.025% CAKE buyback and burn
  • 0.025% Distributed to CAKE holders

D: Big burn — 0.25% Trading Fee

  • 0.17% LP token holders
  • 0.03% Treasury
  • 0.05% CAKE buyback and burn

Members of the CAKE community were able to cast their votes until Apr 22, 2021. Option D, Big burn was voted by the community with over 66.85% voting in favor of it.


The Migration Clock Is Ticking....

We are just a couple of hours away from what promises to be a defining experience for the PancakeSwap platform. Migration to Version 2 is scheduled to start on Friday 23rd April at 5 AM UTC. Click here to keep track of the countdown based on your timezone.


As Migration Nears, What Should You Do?

PancakeSwap Liquidity Pool Tokens that are staked in farms or pools need to be retrieved. So if you staked LP tokens, unstake and split them into their individual tokens. Keep the tokens in your wallet. Then reassemble your LP tokens and deploy them to the new smart contracts after launch.

Source: Twitter


What Next?

Once Version 2 goes live, it will be as though the farms and pools started afresh. So, we are likely to witness significantly high annual percentage rates (APR) soon after launch. Those who can hop in early enough would benefit from that temporary high APR before the pools settle down.

After that, trust PancakeSwap's chefs to get down to the business of delivering on the promises inherent in the migration. The future is sure looking tasty for PancakeSwap, to say the least.


More On PancakeSwap

PancakeSwap is currently the top-ranked dApp on the Binance Smart Chain. The phenomenal growth of PancakeSwap saw it recently surpassed the entire Ethereum network in the number of daily transactions.

On April 12, PancakeSwap scored another first: its Total Volume Locked (TVL) got higher than its Ethereum-based rival, Uniswap. Presently, PancakeSwap leads all other AMMs in TVL and daily volume of trade.

The momentum is strong with PancakeSwap. These are indeed exciting times for the platform, CAKE holders, the Binance Smart Chain, and the DeFi community in general.

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Ahamdi Abarikwu

Ahamdi Abarikwu is an Electrical Engineer and a lover of anything crypto. He is also an avid writer, proofreader and editor. He loves to play Scrabble in his spare time.