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Which Aave changes affect CAKE lending?

Aave (AAVE) is voting on a proposal to set PancakeSwap’s (CAKE) Loan-to-Value (LTV) ratio to zero and remove its lending options. This move aims to address recent issues with price discrepancies reported by oracles, according to a media summary of the vote here.

  1. Zero LTV for CAKE means it can no longer be used as collateral on Aave if the proposal passes.
  2. Lending for CAKE would be disabled, stopping new borrowing and lending; existing loans may be affected.
  3. The change is driven by risk concerns after a significant price feed mismatch during a market drop on October 11, where a 58% gap was reported.

Deep Dive

1. What Does Zero LTV and Delisting Mean?

Setting CAKE’s Loan-to-Value to zero means users can’t use CAKE as collateral to borrow other assets on Aave. Removing lending options means no new loans or deposits involving CAKE would be allowed. This proposal is part of a broader effort to improve platform stability and reduce the risk of bad debt caused by recent market volatility.

2. Why Is Aave Tightening Risk Controls?

The vote comes after a period when price data from oracles (trusted external data sources) didn’t match prices on decentralized exchanges (DEXs). This mismatch created opportunities for arbitrage and led to losses—about $200,000 during a market downturn on October 11. The price feeds from Chainlink, a popular oracle provider, showed a 58% difference compared to DEX prices. To protect the platform, Aave is considering stricter rules for assets like CAKE that have less reliable price data or lower market liquidity, as explained in the report.

What this means: This change is about managing technical risks related to price accuracy, not a judgment on CAKE itself. If CAKE’s price data or market depth is seen as too risky, Aave reduces exposure by disabling its use as collateral and stopping lending.

3. How Will This Affect CAKE Users?

If the proposal passes, users who lend CAKE on Aave will no longer earn interest, and borrowers won’t be able to take out new loans backed by CAKE. Existing loans might be frozen or need to be closed, depending on the final details. Governance delegates appear to support this as a precaution to maintain platform stability. The revenue from CAKE lending on Aave has been relatively small, so the impact on overall earnings is expected to be limited.

Conclusion

Aave’s proposed governance change to set CAKE’s LTV to zero and disable lending is a risk management step to reduce problems caused by unreliable price feeds. If approved, CAKE won’t be usable as collateral on Aave, and lending will stop. Users should prepare to adjust or move their positions accordingly as these changes take effect.

Confidence level: Moderate. This summary is based on media reports of the governance vote rather than an official Aave governance announcement in the past week. Check Aave’s official governance channels for confirmation when available.

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What could affect the price of CAKE?

CAKE’s price is currently caught between strong efforts to reduce its supply and short-term risks from a large number of tokens becoming available soon.

  1. Tokenomics 3.0 Update – Plans to cut supply by 20% by 2030, but 60 million CAKE tokens will be unlocked soon (Could be good or bad for price)
  2. Growing Across Multiple Blockchains – Expanding to Solana and Base networks, plus adding real-world asset trading (Positive for growth)
  3. Market Mood – High fear among investors clashes with rising trading activity on decentralized exchanges (Mixed signals)

Deep Dive

1. Tokenomics 3.0: Supply Reduction vs. Token Unlocks (Mixed Impact)

Overview:
PancakeSwap’s Tokenomics 3.0 proposal aims to shrink the total CAKE supply by 20% by 2030. This will be done by increasing the annual burn rate to 4% (up from 2.7% in 2024) and cutting daily token emissions nearly in half—from 44,000 to 22,500 CAKE per day. However, the removal of veCAKE staking means about 60 million CAKE tokens (roughly 18% of what’s currently circulating) will become available immediately, with holders having six months to redeem them.

What this means:

2. Expanding to Multiple Blockchains & New Products (Positive Impact)

Overview:
PancakeSwap now operates on 10 different blockchains, including Solana and Base. In Q3 2025, trading volumes reached $476 billion, a 40% increase from the previous quarter. Recent product launches include:

What this means:
By expanding its services and blockchain reach, PancakeSwap is generating more fees (which help burn CAKE tokens) and attracting more users. This growth could increase demand for CAKE, especially since it’s used for governance and participating in token events.

3. Market Sentiment & Broader Risks (Mixed Impact)

Overview:

What this means:
CAKE’s price might follow BNB’s recent downward trend (which dropped 23% month-over-month) if overall market conditions worsen. However, its deflationary features could help it hold value better than other altcoins during selloffs.

Conclusion

CAKE’s outlook depends on how well it can manage the balance between the large token unlock happening soon and its ongoing efforts to reduce supply through burning. While the 60 million unlocked tokens present a short-term challenge, PancakeSwap’s strong position in decentralized exchange trading (accounting for 64% of BNB Chain’s revenue) and its expanding product offerings give it a good chance to bounce back if market sentiment improves. The key question remains: Will CAKE’s token burn rate be enough to offset selling pressure from disappointed stakers?


What are people saying about CAKE?

The PancakeSwap (CAKE) community is divided between excitement over a potential price breakout and cautious profit-taking. Here’s the latest:

  1. Symmetrical triangle pattern – Traders are watching the $2.64 level closely as a key point for a possible price move 🎯
  2. PancakeSwap expanding to Base and Solana – Growing to multiple blockchains is driving positive outlooks 🚀
  3. Weekly token burns vs. new tokens released – Deflationary effects are balancing against concerns about upcoming token unlocks 🔥

Deep Dive

1. @johnmorganFL: “Breakout Above $2.64 = Rally” (Positive outlook)

“Volume Explodes, Price Soars: Is PancakeSwap (CAKE) Brewing a Bullish Breakout?”
– @johnmorganFL (35.1K followers · 498K impressions · 2025-07-28 16:33 UTC)
View original post
What this means: This is a good sign for CAKE because when both trading volume and price rise together, it usually means real demand. If CAKE breaks above $2.64 and holds, it could trigger automated buying that pushes the price toward $3.39 to $4.29.

2. @PancakeSwap: Multi-Chain Expansion (Mixed outlook)

“CAKE now live on @Solana via Stargate’s OFT standard”
– @PancakeSwap (Verified · 1.2M followers · 2025-07-28 13:30 UTC)
View original post
What this means: This is somewhat positive — expanding CAKE to other blockchains like Solana increases its usefulness. However, PancakeSwap faces competition from other decentralized exchanges (DEXs) like Uniswap V4. Success depends on capturing some of Solana’s $1.6 billion monthly DEX trading volume (as of July 2025).

3. CoinMarketCap Community: “Bounce or Breakdown?” (Cautious/Negative outlook)

“After rejecting $2.95, CAKE faces liquidity crunch at $2.5 support”
– CMC Post (7.2K views · 2025-08-04 14:21 UTC)
View original post
What this means: This is a warning sign in the short term. CAKE tried and failed to break above $2.95 three times in August 2025, showing weak buying momentum. If the price falls below $2.45, it could trigger stop-loss orders, causing a sharper decline.

Conclusion

Overall, opinions on CAKE are mixed. Technical traders are optimistic based on chart patterns and weekly token burns (about 587,000 CAKE burned weekly), while broader market watchers are concerned about PancakeSwap losing ground to competitors like Uniswap and SushiSwap. Keep an eye on the $2.64 to $2.95 price range this week: closing above $2.95 on a 4-hour chart would signal strength, but dropping below $2.45 could lead to a retest of the $1.20 to $2.20 range seen earlier this year. Also, watch how CAKE’s Tokenomics 3.0 plan—which aims to reduce total supply by 20% by 2030—will affect selling pressure, especially with a big token unlock scheduled for October.


What is the latest news about CAKE?

PancakeSwap is heating up with new cross-chain features and efforts to reduce the supply of its token, CAKE. Here’s the latest update:

  1. Record CAKE Burn & Trading Volume (November 5, 2025) – For the 26th month in a row, PancakeSwap reduced the supply of CAKE by burning 33.8 million tokens.
  2. Launch of CAKE.PAD (October 6, 2025) – A new platform that replaces the old Initial Farm Offerings (IFOs) by burning 100% of participation fees.
  3. Integration with Solana via Stargate (July 28, 2025) – CAKE can now be transferred across 8+ blockchains with no slippage, thanks to a new bridge.

In-Depth Look

1. Record CAKE Burn & Trading Volume (November 5, 2025)

What happened: In October 2025, PancakeSwap burned 5.66 million CAKE tokens, marking 26 straight months of reducing the total supply. The platform also saw a record trading volume of $492 million, helped by over 150 million users and the addition of more than 100 tokenized real-world assets (RWAs) through Ondo Finance.
Why it matters: Burning tokens reduces how many are available, which can make each token more valuable over time. Adding real-world assets expands what you can do with CAKE beyond just trading cryptocurrencies. However, despite these positive moves, CAKE’s price dropped 15% over the month, showing that broader market challenges are still affecting it. (PancakeSwap)

2. CAKE.PAD Launch Changes How Users Access New Tokens (October 6, 2025)

What happened: PancakeSwap introduced CAKE.PAD, a new way for users to participate in early token sales without needing to stake or lock up their CAKE tokens. All fees collected from participation are burned, with over 118,000 CAKE tokens burned in October alone during popular launches like Sigma.Money and WhiteBridge.
Why it matters: This new system helps reduce the total supply of CAKE while giving holders more ways to use their tokens for governance and access. However, the success of CAKE.PAD depends on the quality of new projects—if launches don’t perform well, fewer people may want to participate. (PancakeSwap Blog)

3. Solana Integration via Stargate Bridge (July 28, 2025)

What happened: CAKE tokens can now be moved to the Solana blockchain using Stargate’s LayerZero-powered bridge, allowing seamless swaps between eight different blockchains. This came shortly after PancakeSwap launched its version 3 on Solana.
Why it matters: Expanding to multiple blockchains increases CAKE’s reach and user base but also puts it in direct competition with native Solana decentralized exchanges like Raydium. After the announcement, CAKE’s price rose 2.8%, though this gain was temporary due to overall market conditions. (Stargate)

Conclusion

PancakeSwap is actively working to improve its tokenomics by burning tokens and launching CAKE.PAD, while also growing its ecosystem through real-world assets and cross-chain support. Despite these efforts, CAKE’s price hasn’t fully reflected the progress. With derivatives trading on the BNB Chain reaching nearly $2 trillion monthly, PancakeSwap’s move into real-world assets could help attract more institutional investors in the future.


What is expected in the development of CAKE?

PancakeSwap’s roadmap focuses on expanding across multiple blockchains, upgrading its platform, and growing its ecosystem.

  1. Crosschain veCAKE Expansion (Q4 2025) – Allowing governance rights to work across more blockchain networks.
  2. v4 DEX Whitepaper & Launch (2026) – Introducing more efficient trading with customizable features.
  3. CAKE.PAD Adoption Push (2025–2026) – A platform for early token access that helps reduce CAKE supply through token burns.
  4. Real-World Asset Integration (Ongoing) – Offering tokenized stocks and ETFs through a partnership with Ondo Finance.

Deep Dive

1. Crosschain veCAKE Expansion (Q4 2025)

Overview: Currently, veCAKE governance (which lets holders vote on platform decisions) works on BNB Chain and Ethereum. PancakeSwap plans to extend this to other blockchains like Base, Arbitrum, and Solana. This means CAKE holders can influence decisions and markets across multiple networks (PancakeSwap Docs).
What this means: This is positive for CAKE because it could increase demand for staking and voting. However, the technical challenges and possible lack of voter interest could slow progress.

2. v4 DEX Whitepaper & Launch (2026)

Overview: The upcoming version 4 of PancakeSwap will introduce “Hooks,” which are modular smart contracts. These allow for customizable liquidity pools, adjustable fees, and protection against certain types of trading manipulation. The whitepaper is expected by late 2025, with the full launch in 2026 (Key Features).
What this means: This update could attract more experienced traders and improve the platform, but moving from the current version might temporarily split liquidity.

3. CAKE.PAD Adoption Push (2025–2026)

Overview: CAKE.PAD is PancakeSwap’s new platform for launching tokens early. Users must commit CAKE tokens to participate, and all fees collected are burned, reducing the total CAKE supply. Two popular sales in October 2025 burned 118,000 CAKE tokens (October 2025 Recap).
What this means: If more projects use CAKE.PAD, it’s good for CAKE’s value because burning tokens reduces supply. But if the quality of projects drops, fewer people might participate.

4. Real-World Asset Integration (Ongoing)

Overview: PancakeSwap now supports trading tokenized real-world assets like stocks (e.g., Apple, Tesla) on BNB Chain through a partnership with Ondo Finance. They plan to add more assets and offer fee-free trading promotions (Ondo Partnership).
What this means: This could increase trading volume and attract new users, but it depends on clear regulations around tokenized real-world assets.

Conclusion

PancakeSwap is focusing on expanding its governance across blockchains, improving its trading platform, reducing token supply through CAKE.PAD, and offering real-world asset trading. While success depends on technical execution and market conditions, these steps support CAKE’s goal of sustainable growth. The big question remains: can PancakeSwap’s crosschain approach compete with other major platforms like Uniswap v4 and LayerZero-based decentralized exchanges?


What updates are there in the CAKE code base?

PancakeSwap’s latest updates focus on improving efficiency, security, and giving developers more tools to build on the platform.

  1. MEV Capture Hook (July 2025) – Redirects profits usually taken by validators back to liquidity providers through auctions.
  2. Singleton Architecture (April 2025) – Cuts pool creation costs by 99% by using a single contract for all pools.
  3. ERC-6909 Standard Integration (April 2025) – Simplifies token management to lower transaction fees.

Deep Dive

1. MEV Capture Hook (July 2025)

What it is: Launched on the BNB Chain, this feature allows liquidity providers (LPs) to earn rewards from Miner Extractable Value (MEV), which is typically captured by validators or miners. It works by holding transparent auctions for arbitrage opportunities—situations where price differences between markets can be exploited for profit.

The auction winners share their profits with LPs and the PancakeSwap protocol, encouraging more liquidity and better market stability.

Why it matters: This is good news for CAKE holders because it directly rewards those who provide liquidity, potentially attracting more investment. Higher rewards for LPs can lead to increased total value locked (TVL) and more trading activity.
(Source)

2. Singleton Architecture (April 2025)

What it is: Instead of creating a new contract for every liquidity pool, PancakeSwap now uses one main contract called PoolManager to handle all pools. This reduces the cost of creating pools from about $150 to just $1.50 in gas fees.

It also makes multi-step token swaps more efficient by avoiding unnecessary token transfers.

Why it matters: While this doesn’t directly impact CAKE’s price, it’s a big step for scaling the platform. Lower fees make it easier for smaller traders and developers to create and use custom pools, encouraging innovation within the PancakeSwap ecosystem.
(Source)

3. ERC-6909 Standard (April 2025)

What it is: PancakeSwap replaced the traditional ERC-20 token standard with ERC-6909, which tracks token balances more efficiently. Instead of moving tokens around with each transaction, it uses minting and burning within a single contract to update balances.

This reduces the number of approval steps and cuts gas fees by up to 40% for complex transactions. Users can also batch multiple transactions together for even more savings.

Why it matters: This upgrade makes PancakeSwap more cost-effective and competitive, especially for traders who make frequent trades or use multiple blockchains. Lower fees can attract more users and increase trading volume.
(Source)

Conclusion

PancakeSwap’s recent improvements focus on making the platform more capital-efficient, reducing costs, and scaling transaction capacity. These updates support PancakeSwap’s growth across multiple blockchains, including new integrations with Solana and Base. Looking ahead, new Hooks like the MEV Capture Hook could continue to reshape how DeFi platforms handle fees and rewards, potentially disrupting traditional models.


Why did the price of CAKE go up?

PancakeSwap (CAKE) increased by 3.66% in the past 24 hours, outperforming the overall crypto market, which dropped by 1.38% over the last week. This growth is driven by the expansion of the BNB Chain, positive technical signals, and ongoing token burns that reduce supply.

  1. BNB Chain Activity Surge – Daily transactions between 12 and 17 million and $7.5 billion in Total Value Locked (TVL) boost CAKE’s usefulness.
  2. Technical Breakout – Indicators like the MACD crossover and RSI rebound suggest growing momentum.
  3. Deflationary Burns – Over 24 million CAKE tokens have been burned since September 2023, reducing supply.

Deep Dive

1. BNB Chain Growth (Positive Impact)

Overview:
In November 2025, the BNB Chain handled between 12 and 17 million transactions daily and had $7.54 billion locked in its ecosystem. PancakeSwap leads decentralized exchange (DEX) volume on BNB Chain, generating 64% of the protocol’s revenue (CryptoQuant).

What this means:
More activity on the BNB Chain means more trading and liquidity on PancakeSwap, which benefits CAKE holders through increased fees and participation. Recent upgrades, called the “Yellow Season,” have made the network faster and allowed transactions without gas fees, making PancakeSwap more attractive to users.

What to watch:
The price of BNB is currently around $913. If it falls below $900, it could put downward pressure on CAKE.

2. Technical Momentum (Mixed Signals)

Overview:
CAKE’s MACD indicator recently turned positive for the first time in two weeks, and the RSI (Relative Strength Index) bounced back from oversold levels to 41.5. The price also moved above the 200-day Simple Moving Average (SMA) at $2.56, an important support level.

What this means:
These technical signals suggest traders see a potential upward trend starting. However, there is resistance at $2.73, which is a key Fibonacci retracement level. If CAKE can stay above $2.60, it might aim for $2.88 next.

3. Deflationary Pressure (Positive Impact)

Overview:
PancakeSwap burned 24.2 million CAKE tokens (worth about $58 million) in its 23rd consecutive monthly burn (July 2025 Recap). Over the past 90 days, the total supply has dropped by 3.42%.

What this means:
With fewer tokens available and steady trading volume ($89.2 million in 24 hours), the price tends to rise. The upcoming Tokenomics 3.0 upgrade plans to remove 20% of CAKE’s total supply by 2030, which should increase scarcity and potentially boost value.

Conclusion

CAKE’s recent price increase reflects strong activity on the BNB Chain, positive technical indicators, and consistent token burns. While there is some resistance ahead, the combination of ecosystem growth and supply reduction supports a bullish outlook.

Key point to watch: Can CAKE maintain its position above the 200-day SMA at $2.56 to confirm a trend reversal? Keep an eye on BNB Chain’s TVL and ongoing CAKE burn rates to gauge if this momentum can last.