As agreed on # [FIP #10] — Vote for the mining incentives on BSC, 9000 cFNX was provided as mining rewards for Pancake FNX/BUSD liquidity providers.
In the meantime, we are talking with the PancakeSwap team about the possibility to provide $CAKE as rewards.
Here is the offer from the Pancake team:
So the current way we are working with most projects coming to BSC is to add a “farm” for the LP token of their token against BNB or BUSD in return for an amount of the project’s tokens for CAKE holders to farm.
For example, we add a farm for FNX-BNB liquidity providers at a 1x multiple, which is currently earning around $21M USD in CAKE token rewards a year. We basically incentivise FNX-BNB LP token holders with around 3,600 CAKE tokens every day, which equates to around $57,000 a day. The farms and the APY can be found here: PancakeSwap. This farm will run for a minimum of 3 months, after which we will re-assess based on user activity and trading volume and may adjust rewards upwards, downwards or remain the same.
In return we would ask for around $400,000 worth of FNX tokens to allow our CAKE token holders to stake CAKE and farm FNX at a linear rate over ~2 months. These pools can be found here: PancakeSwap
It would work something like this: PancakeSwap Welcomes Reef Finance to Syrup Pool! Stake CAKE, Earn REEF! | by PancakeSwap | Medium
So in short, $CAKE will be the rewards for the FNX/BUSD liquidity, and $FNX will be provided as the incentives for $CAKE holders.
- Better exposure for $FNX on BSC;
- More likely to attract a larger pool;
- Direct $CAKE rewards to the LP contributors.
- Possibly more $FNX incentives than the current plan;
- Incentives directly go to $CAKE stakers rather than LP contributors, and it is more likely to farm and dump on the market.
What do you think? Does it deserve for another vote?