Welcome, Chefs!
This is where you’ll find everything you need to know about sdCAKE, the latest delicious dessert from Stake DAO, for you, CAKE holders, members of the Pancakeswap ecosystem, as well as those who are simply curious to find out more about the product!
So, grab a few minutes to read on!
The CAKE Liquid Locker
Liquid Lockers enable owners of governance tokens with veTokenomics to enjoy all the benefits of locked tokens, without the trade-off of illiquidity, thanks to a wrapper: the sdToken, offering liquidity when you wish to exit your position without waiting for the full unlock duration.
What is sdCAKE?
Now, let’s move on to the real topic of interest.
After Pancakeswap’s veCAKE update, we decided to embrace this new market, starting by developing our own liquid derivative of veCAKE: sdCAKE, using the key ingredients that make the Liquid Lockers so special.
Users will be able to mint sdCAKE by depositing CAKE in the CAKE Liquid Locker. Here is a diagram of the working process:
Once users have those sweet sdCAKEs, they can then stake them to receive all of their benefits and rewards :
- veCAKE’s native yield and incentives $$$
- veCAKE’s voting power and the ability to sell this voting power against vote incentives
- Boosting fees paid by users of Stake DAO’s PancakeSwap strategies to sdCAKE stakers
- Possibility to exit whenever you want (no lock period)
Alternatively, users also have the option to provide liquidity to the CAKE/sdCAKE pool on Pancakeswap to earn trading fees, CAKE incentives, and potentially other rewards. Adding liquidity contributes to maintaining sdCAKE’s peg and its resistance against important outward volume.
Users can leave their sdCAKE position by swapping sdCAKE for CAKE.
To bootstrap the launch of sdCAKE, Stake DAO is launching “Top Cake”, a great game for CAKE holders and the PancakeSwap community, with only winners and no losers, and a juicy airdrop as a final cherry on top of the cake!
Information about it will come in a separate article.
Useful links:
- Our Website: https://stakedao.org/
- Our Twitter: https://twitter.com/StakeDAOHQ
- Our Public Community Telegram Channel: https://t.me/StakedaoHQ
- Our Documentation (Gitbook): https://stakedao.gitbook.io/stakedaohq/
- Our Medium Articles: https://stakedaohq.medium.com/
