Home Crypto PancakeSwap Auto-compounding

PancakeSwap Auto-compounding

by S. Jack Heffernan Ph.D

CAKE holders and PancakeSwap users, today marks the launch of auto-compounding!

Auto-compounding means that rather than having to manually re-stake your CAKE every so often in order to get the best APY, it will be done for you!

How does the “Auto CAKE Pool” work?

It’s super simple! Just stake your CAKE in the Auto CAKE Pool, and we’ll do the rest for you!

While your CAKE is staked, it will be harvested and restaked automatically by people claiming the Auto CAKE Bounty (a 0.05% reward which is taken from the amount harvested).

So set, forget and put your feet up while watching your CAKE stack grow!

What are the fees for the Auto CAKE Syrup Pool?

Deposit fee

  • None

Unstaking fee

  • 0.1% if you unstake (withdraw) within 72 hours.
  • After 72 hours, you can withdraw with no fee.
  • The unstaking fee timer resets back to 72 hours every time you stake more CAKE.

Performance fee

  • 2% of each yield harvest, which is subtracted automatically.
  • For example, if the harvest was 1 CAKE, then 0.02 CAKE would be subtracted as the performance fee.

What would be the best way for me to use the Auto CAKE Syrup Pool?

Simple: stake your CAKE, but only withdraw after 72 hours (if you need to). This way you only pay the performance fee, and not the unstaking fee.

How is the APY calculated?

The initial APY has been set based on the pool being compounded once per hour (8,670 times per year). In actuality, the whole pool is likely to be compounded way more often than that, which will be incentivized by the “Auto CAKE bounty”, so the APY will be adjusted to represent a more accurate rate when there is some initial data for us to go on.

What’s the Auto CAKE bounty?

Auto CAKE Bounty: 0.05% of all Auto CAKE pool users’ pending yield

This bounty is given as a reward for providing a service to other users.

Whenever you successfully claim the bounty, you’re also helping out by activating the Auto CAKE Pool’s compounding function for everyone.

Make sure the amount of CAKE you receive is greater than the BNB fees you’ll spend to submit the blockchain transaction!

What happens to the CAKE collected from the fees?

The CAKE collected via the unstaking fee and performance fee is burned every week as part of the regular CAKE token burns. This is a good thing for CAKE holders because it reduces the overall amount of CAKE tokens in existence, which helps reduce inflation.

What’s the difference between the “Manual CAKE Pool” and the “Auto CAKE Pool”?

With both pools, you can simply stake your CAKE tokens to earn more CAKE tokens.

But there are some differences:

Manual CAKE

  • You need to harvest or compound (reinvest) your CAKE by yourself. That means returning to the site, tapping buttons, and using a bit of BNB for transaction fees.
  • Interest is displayed as APR, which doesn’t include compounding.

Auto CAKE

  • Stake your CAKE and forget about it! The CAKE you stake in this Syrup Pool will be automatically compounded (reinvested) for you, minus a small fee.
  • The “automatic” compounding function is triggered by other users who get a small bounty for triggering it.
  • Interest is displayed as APY, which includes compounding.
  • A small performance fee is subtracted from your earnings each time the pool is automatically compounded. See below.
  • An unstaking fee applies when you unstake within 3 days of manually staking.

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