In an ambitious move to incentivize its stakers popular decentralized exchange (DEX) PancakeSwap ($CAKE) is set to disburse a share of its trading fee revenue amounting to millions of dollars to CAKE token stakers.
According to a recent announcement from the exchange the initiative, dubbed the Revenue Sharing Pool (RSP), will distribute a weekly 5% cut of the trading fee revenues to Fixed-Term CAKE stakers. The revenue will be generated from all PancakeSwap v3 pairs operating under the 0.01% and 0.05% fee tiers.
The RSP promises a two-fold benefit for Fixed-Term CAKE stakers. On one hand, they will continue to relish the Annual Percentage Rate (APR) from staking CAKE. On the other hand, they will secure tangible yields directly from PancakeSwap’s v3 trading fee revenues.
According to recent data, PancakeSwap’s total v3 trading volumes have soared beyond $12.5 billion, thus suggesting a considerable potential for Fixed-Term CAKE stakers to accrue sizable rewards.
The revenue-sharing pool is set to launch on August 9 and, according to the blog post, represents a warding and sustainable model for CAKE token holders, allowing them to benefit from the expansion of the popular decentralized exchange.
To retrieve their rewards, users will need to select the “Claim” option in the Locked CAKE Benefits pop-up within the PancakeSwap platform. The coming weeks of August will see an inflow of extra rewards derived from the revenue accrued over June and July.
The initial four distributions will each entail a quarter share of the revenue-sharing rewards accumulated during June and July. Rewards will reportedly be distributed every week, Wednesday, at 23:59 UTC.
PancakeSwap, according to popular decentralized finance analytics platform DeFiLlama, currently has a $326 million market capitalization and $356 million worth of tokens staked on it. Its annualized trading volume is $174 billion.
Featured image via Unsplash.