Cake War Triggers New Opportunities in the BNB Chain Ecosystem

Cake War is quietly brewing, expected to give rise to a new generation of billion-dollar DeFi protocols on the BNB Chain. Multiple participants have launched activities similar to deposit coin airdrops, providing additional IDO shares to attract users. This article will delve into the ins and outs of Cake War, participation strategies, and potential returns.

Cake War Overview

Cake has recently completed a major upgrade, introducing a veTokenomics mechanism similar to Curve. Users can lock Cake to obtain veCake, which is used to enhance LP rewards and participate in governance voting. This transformation introduces a continuous incentive mechanism to the ecosystem and creates opportunities for Convex-like projects to compete for veCake shares.

Cake V3, as a concentrated liquidity pool similar to Uniswap V3 (CLAMM), has its largest differentiated advantage. Unlike other DEXs with veTokenomics + CLAMM, Cake V3 supports providing corresponding incentives based on liquidity distribution, allowing users to freely deploy positions. This model can be seen as an enhanced version of the Uniswap V3 token economy. In addition, Cake is also compatible with the trading models of Uniswap V2 and Curve V1, which can meet diversified liquidity needs.

How to Participate in Cake War

Currently, there are three main participants:

1. The sub-DAO Cakepie launched by Magpie
2. Equilibria team incubated Skillet Finance
3. The Stake DAO with the highest participation rate

Cakepie and Skillet have launched a deposit and airdrop event, and are additionally offering IDO shares. Magpie, with its outstanding performance in the Penpie project, has raised over $6 million in Cake for Cakepie. However, it is recommended to carefully assess potential risks and rewards before making any decisions.

Cake War and Similar Projects' Revenue Estimation

Taking Penpie as an example, early participants deposited Pendle worth 1.6 million USD through the Pendle Rush event and earned a total of approximately 2.5 million USD, which corresponds to a return rate of 160%. Considering the market scale and influence of Cake, the potential earnings of Cakepie could be around 3 times that of Penpie, which is about 7.5 million USD.

However, there are still many uncertainties in the Cake War, and the final outcome may differ from expectations. Participants need to be aware of the de-peg risk, which means that the converted tokens may not be able to be exchanged back to the original tokens at a 1:1 ratio.

Participation Suggestions

1. Pay attention to the specific incentive plans and IDO details of each participant.
2. Evaluate the project's team's capabilities and credit endorsement, especially their performance in handling de-peg risks.
3. For Skillet Finance, pay attention to its potential dual airdrop opportunities.
4. Use tools like DeFi Wars to analyze the historical de-peg situation of the project and comprehensively assess potential returns and risks.

Summary

1. Cake War is expected to bring a total locked value of 1 billion dollars to the BNB Chain, a Convex-like project with a fully diluted valuation of approximately 100 million dollars, which will help activate the entire ecosystem.
2. Early participants may achieve considerable returns in the short term, but should be wary of de-peg risks.
3. Due to the presence of many uncertain factors, it is currently difficult to provide an accurate revenue expectation.

The development of Cake War will bring new opportunities and challenges to the BNB Chain ecosystem, which is worth paying close attention to.