Which KyberSwap integration increased CAKE yields?
KyberSwap’s FairFlow integration with PancakeSwap Infinity (using PancakeSwap Hooks) has boosted CAKE yields, according to a recent update on FairFlow and Hooks adoption here.
- FairFlow captures arbitrage profits and shares the Equilibrium Gain with liquidity providers (LPs), increasing their overall returns.
- PancakeSwap LPs now earn from three sources: regular LP fees, Equilibrium Gain sharing rewards, and KNC liquidity mining rewards.
- This setup aims to provide sustainable, higher yields while encouraging more use of Hooks on PancakeSwap.
Deep Dive
1. How FairFlow Works
FairFlow is built on PancakeSwap’s Hooks system. It captures arbitrage profits—extra value created when traders exploit price differences—and returns that value (called Equilibrium Gain) to LPs. This improves the actual yield LPs earn compared to standard pools. The recent announcement highlights faster adoption of Hooks and “next-level rewards” for PancakeSwap LPs, confirming the goals of this integration see update.
In simple terms: If you provide liquidity to PancakeSwap pools using FairFlow, the system tries to capture extra profits from arbitrage and share them with you, increasing your effective returns.
2. Sources of Yield
FairFlow pools add two extra reward streams on top of the usual LP fees to boost CAKE yields for PancakeSwap liquidity providers as explained here:
- Regular LP fees earned from swap transactions.
- Equilibrium Gain (EG) sharing rewards paid to LPs.
- KNC (Kyber Network Crystal) liquidity mining rewards.
3. Why This Matters for CAKE LPs
PancakeSwap Infinity offers a flexible automated market maker (AMM) design that allows advanced pool features through Hooks. FairFlow uses this to recycle value that normally goes to arbitrage traders, potentially increasing the net annual percentage yield (APY) for CAKE liquidity providers in qualifying pools per the announcement.
Bottom line: This integration makes providing liquidity with CAKE more rewarding by combining multiple income streams. However, actual returns will still depend on pool activity, fees, and market conditions.
Conclusion
The integration responsible for higher CAKE yields is KyberSwap’s FairFlow on PancakeSwap Infinity, powered by PancakeSwap Hooks. By sharing Equilibrium Gain and adding KNC rewards alongside regular fees, LPs can enjoy a more diverse and potentially higher return on PancakeSwap pools.
What could affect the price of CAKE?
CAKE is navigating challenges from changes in supply and shifting incentives.
- Tokenomics 3.0 update – Unlocking staking and retiring veCAKE could lead to short-term selling pressure.
- Emission reductions & token burns – If deflation continues, daily CAKE supply could drop by 57% by 2026.
- Dependence on BNB Chain – PancakeSwap holds retail trading volume but faces competition from multichain platforms like Hyperliquid.
Deep Dive
1. Tokenomics Overhaul (Mixed Impact)
Overview:
In April 2025, PancakeSwap updated its tokenomics with Tokenomics 3.0, ending veCAKE staking and unlocking about 79 million CAKE tokens, which is roughly 23% of the tokens currently circulating (PancakeSwap Governance). Daily token emissions were cut by 44%, down to 22,500 CAKE, and 15% of fees from the new pools are burned (permanently removed from circulation). However, the immediate unlocking of tokens caused selling pressure, and CAKE’s price dropped 19% in the 90 days after the update.
What this means:
There is short-term risk to CAKE’s price because of the increased supply hitting the market. The Relative Strength Index (RSI) at 32.91 suggests the token is oversold, which could mean a rebound is possible. Long-term, the goal is to reduce CAKE’s supply by about 4% annually through burns. PancakeSwap’s success depends on whether token burns can offset the unlocked tokens. Since May 2025, the net supply has actually decreased by 1.4% each month, which is a positive sign.
2. Decentralized Exchange (DEX) Competition & Trading Volume (Bearish Risk)
Overview:
CAKE is facing growing competition from faster decentralized exchanges like Hyperliquid, which has seen $16.6 billion in large investor inflows, and Aerodrome, with $494 million in purchases (CryptoNews). While PancakeSwap remains the top DEX on the BNB Chain, its 30-day trading volume dropped 54% year-over-year to $638 million, falling behind other leading platforms.
What this means:
Lower trading volume could reduce the fees PancakeSwap collects, which means fewer tokens are burned. CAKE’s turnover ratio (how often tokens change hands) is 0.093, compared to an average of 0.22 for spot and perpetual markets, indicating lower liquidity. This means a 10% selloff could lead to bigger price drops. Also, the move to managing emissions directly might upset holders who prefer governance participation.
3. Macro and Regulatory Pressures (Bearish Catalyst)
Overview:
In July 2025, Turkey banned PancakeSwap, causing CAKE’s price to drop 3.36% overnight (CoinMarketCap). Bitcoin continues to dominate the market with 58.5% share, and during “Bitcoin Season,” altcoins like CAKE often struggle. Additionally, decisions by the U.S. Federal Reserve on interest rates could reduce investors’ willingness to take risks.
What this means:
CAKE’s price movement has become closely tied to Bitcoin, with a 30-day correlation of 0.89 as of December 2025. The overall crypto market cap fell 8.65%, limiting CAKE’s upside potential. Regulatory uncertainty, such as the SEC’s investigation into Ondo Finance, could also negatively impact decentralized finance (DeFi) tokens like CAKE.
Conclusion
CAKE’s outlook depends on successfully implementing deflationary tokenomics while maintaining its lead on the BNB Chain. Keep an eye on the CAKE burn-to-emissions ratio—if it stays above 1.5x, it means token burns are outpacing new supply, which is good for price stability. With the RSI near historic lows and CAKE priced at $2.03, the question remains: is this the bottom or the start of a longer decline?
What are people saying about CAKE?
PancakeSwap’s CAKE token is stirring up buzz with potential technical breakouts and new product updates, but some investors remain cautious due to uncertain resistance levels. Here’s the latest:
- A symmetrical triangle chart pattern suggests a possible breakout between $3.39 and $4.29 🚀
- The launch of Infinity v4 on the Base Network sparked a 4% price increase 🛠️
- Stakers are preparing for a rush to withdraw before the October 23 redemption deadline ⏳
Deep Dive
1. @johnmorganFL: Technical Squeeze at $2.64 Resistance — Bullish
"CAKE is gearing up for a breakout! If it climbs above $2.64, we could see a rally toward $3.39–$4.29," said John Morgan on May 29, 2025. He points to growth on the BNB Chain and weekly token burns as positive factors.
– @johnmorganFL (35K followers · 498K impressions · 2025-05-29 05:24 UTC)
View original post
What this means: The positive outlook depends on CAKE breaking out of a four-month symmetrical triangle pattern. However, the Relative Strength Index (RSI) at 80.3 suggests the token might be overbought in the short term.
2. @PancakeSwap: $99M CAKE Burn & Protocol Sunset — Neutral
In October 2025, PancakeSwap burned 5.66 million CAKE tokens, reducing the supply by 1.4%. At the same time, the platform is phasing out veCAKE staking, with a deadline set for October 23.
– @PancakeSwap (2.14M followers · 6.5M impressions · 2025-11-05 14:00 UTC)
View original post
What this means: Burning tokens helps reduce supply, which can support long-term value. However, unlocking over $160 million worth of staked CAKE could increase selling pressure in the short term.
3. @Altcoin1hunter: Binance’s BNB Focus Spooks CAKE — Bearish
"CAKE is being overshadowed by Binance... exchanges will always favor their own," tweeted Altcoin1hunter on September 3, 2025, highlighting concerns about waning support for PancakeSwap’s ecosystem.
– @Altcoin1hunter (48K followers · 849K impressions · 2025-09-03 08:24 UTC)
View original post
What this means: This bearish view questions CAKE’s ability to stand out from the BNB Chain ecosystem, especially with growing competition from decentralized exchanges like Uniswap on the Base Network.
Conclusion
Opinions on CAKE are mixed. Technical indicators and token burns suggest potential for price gains, but upcoming staker withdrawals and ecosystem challenges could limit enthusiasm. Keep an eye on the $2.95 resistance level: breaking above it could confirm bullish momentum, while failing to do so might signal selling pressure. With CAKE’s 90-day price volatility at 19.8%, expect either sharp rallies or periods of sideways trading.
What is the latest news about CAKE?
PancakeSwap is growing while also working to reduce the total supply of its token, CAKE, as it competes in the busy decentralized exchange (DEX) market. Here’s what’s new:
- LeverUp Launch on CAKE.PAD (December 17, 2025) – A new token sale targets traders who want to use high leverage, thanks to a partnership with Monad.
- Brevis ZK-Proof Integration (December 8, 2025) – PancakeSwap teams up with Brevis to improve secure and private data processing.
- CAKE Bridged to Solana (July 28, 2025) – Stargate makes it possible to move CAKE tokens to the Solana blockchain without any loss in value.
Deep Dive
1. LeverUp Launch on CAKE.PAD (December 17, 2025)
Overview:
PancakeSwap chose LeverUp, a platform offering very high leverage trading (up to 1001x), for its CAKE.PAD launchpad. The token sale runs from December 17 to 18, 2025, accepting CAKE tokens as payment. They are offering 10 million LV tokens at $0.01 each. LeverUp’s model doesn’t use liquidity providers, so all fees go directly to stakers. This fits with PancakeSwap’s goal to expand across multiple blockchains using Monad’s new Ethereum-compatible network.
What this means:
This news is somewhat positive for CAKE. The token sale could increase demand for CAKE in the short term because fees paid in CAKE are burned (removed from circulation). However, Monad’s mainnet is still unproven and set to launch in 2026, and LeverUp’s very high leverage trading carries risks that might slow adoption. (CoinMarketCap)
2. Brevis ZK-Proof Integration (December 8, 2025)
Overview:
PancakeSwap integrated Brevis’ ProverNet, a decentralized marketplace for zero-knowledge (ZK) proofs. This technology allows PancakeSwap to verify user actions on the blockchain securely and privately, such as confirming activity for rewards. Brevis already processes over 250 million proofs across more than 30 blockchains.
What this means:
This is a positive long-term development. Using ZK-proofs could help PancakeSwap stand out by offering more secure and private features in the growing decentralized finance (DeFi) space. However, Brevis plans to switch to its own BREV token in 2026, which could create some dependency risks. (CoinMarketCap)
3. CAKE Bridged to Solana (July 28, 2025)
Overview:
Thanks to Stargate and LayerZero’s OFT standard, CAKE tokens can now be transferred to the Solana blockchain. This adds Solana to the list of networks CAKE supports, including BNB Chain, Ethereum, and six others. The bridge allows 1:1 token swaps with no slippage (no loss in token value during transfer).
What this means:
This is neutral news for CAKE. Expanding to Solana’s fast and scalable network improves access for users, but the total value locked (TVL) for CAKE on Solana remains relatively small—about $500 million as of August 2025. (Stargate)
Conclusion
PancakeSwap is pushing for growth across multiple blockchains (Monad, Solana) while upgrading its technology with ZK-proofs, even as CAKE’s price has dropped 30% this year. With large investors currently favoring newer DEX tokens like ASTER and HYPE, PancakeSwap’s focus on burning tokens and building partnerships will be key to regaining momentum in 2026.
What is expected in the development of CAKE?
PancakeSwap is making significant progress with these key updates:
- Monad Mainnet Integration (November 24, 2025) – Improves scalability and cross-chain liquidity by using Monad’s fast and efficient blockchain.
- CAKE.PAD Expansion (Ongoing) – Increases token burns through popular initial DEX offerings (IDOs) like Sigma.Money and WhiteBridge.
- Fee-Earning Limit Orders (September 29, 2025) – Users now earn 0.1% fees on completed orders, thanks to the new Infinity system.
- Real-World Asset (RWA) Integration (October 2025) – Adds over 100 tokenized stocks and ETFs on the BNB Chain through a partnership with Ondo Finance.
Deep Dive
1. Monad Mainnet Integration (November 24, 2025)
Overview: PancakeSwap is now running on Monad, a blockchain compatible with Ethereum’s technology but faster and cheaper. This means trades settle almost instantly and costs are lower, which is great for users and traders who rely on quick transactions.
What this means: This is positive for CAKE because Monad’s speed and scalability could attract bigger investors and increase trading volume. However, success depends on how well Monad grows and how many developers build on it.
2. CAKE.PAD Expansion (Ongoing)
Overview: The updated launchpad has burned 118,289 CAKE tokens (worth about $243,000 at $2.06 each) from two highly popular sales: Sigma.Money (51,262 CAKE) and WhiteBridge (67,027 CAKE). Future token sales aim to keep reducing the total supply of CAKE.
What this means: This is somewhat positive—burning tokens reduces supply, which can support price. But extremely high demand ratios (like 142,000% for WhiteBridge) could lead to dilution if interest drops. It’s important to watch the quality of projects and how many people participate.
3. Fee-Earning Limit Orders (September 29, 2025)
Overview: Users can now earn a 0.1% fee on every order that gets filled, replacing older trading systems. These rewards are automatically paid out on the blockchain, so users don’t have to claim them manually.
What this means: This is good news for active traders and increases PancakeSwap’s revenue, which can be used to burn more CAKE tokens. However, its success depends on how many traders use this feature and competition from other platforms like UniswapX.
4. Real-World Asset (RWA) Integration (October 2025)
Overview: More than 100 tokenized stocks and ETFs (like AAPLon and TSLAon) are now available on the BNB Chain through a partnership with Ondo Finance. This allows users to trade traditional financial assets 24/7 with no fees until November 29, 2025.
What this means: This could attract traditional finance users to DeFi, which is a big plus. But regulatory challenges remain a concern. The success of this feature depends on having enough liquidity and following financial regulations.
Conclusion
PancakeSwap is focusing on improving cross-chain scalability (Monad), reducing token supply (CAKE.PAD), and connecting with traditional finance (RWAs) to strengthen its position in decentralized finance (DeFi). While these updates add value to CAKE, their overall impact will depend on market conditions and regulatory developments. Will CAKE’s burn rate increase as real-world asset trading grows, and can Monad outperform other blockchain networks in attracting liquidity?
What updates are there in the CAKE code base?
PancakeSwap’s platform is evolving with support for multiple blockchains and improvements that reduce transaction costs.
- Fee-Earning Limit Orders (September 2025) – Users earn a 0.1% fee on completed limit orders, replacing older systems.
- Crosschain Swaps to Solana (September 2025) – Seamless swaps across 7 blockchains, powered by Relay technology.
- Infinity Upgrade on Base (July 2025) – New liquidity pools and 50% lower gas fees for Ethereum swaps.
Deep Dive
1. Fee-Earning Limit Orders (September 2025)
What’s new: Users now receive a 0.1% fee every time their limit order is filled. This replaces the previous system that relied on ORBS technology. The rewards are automatically sent to users’ wallets through PancakeSwap’s upgraded Infinity system.
This upgrade runs entirely on the blockchain, removing the need for outside services. Orders are settled directly into users’ wallets, making the process more transparent and reliable.
Why it matters: This is good news for PancakeSwap (CAKE) because it encourages more advanced trading strategies. This could increase the platform’s revenue and improve liquidity, meaning more assets are available for trading. (Source)
2. Crosschain Swaps on Solana (September 2025)
What’s new: PancakeSwap now supports swaps between Solana and Ethereum-compatible blockchains like BNB Chain and Arbitrum. These swaps happen quickly—usually in under a minute—thanks to Relay’s infrastructure, which has handled over 55 million transactions.
This feature uses a single, unified interface to avoid splitting liquidity across different platforms, making it easier for users to trade assets across multiple blockchains.
Why it matters: This expands PancakeSwap’s reach but is neutral for CAKE’s value since it competes with native Solana exchanges. Still, it strengthens PancakeSwap’s position as a multichain platform. (Source)
3. Infinity Upgrade on Base (July 2025)
What’s new: PancakeSwap launched the Infinity upgrade on the Base network, introducing two types of liquidity pools: CLAMM (which focuses liquidity for better trading prices) and LBAMM (which eliminates slippage, or unexpected price changes). It also added dynamic fee Hooks that automatically adjust fees based on market conditions.
This upgrade uses a Singleton model that cuts the gas cost of creating pools by 99%. Additionally, swapping native ETH now costs 50% less gas compared to using ERC-20 token transfers.
Why it matters: Lower fees attract more liquidity providers and traders, especially those trading Ethereum pairs frequently. This is positive for CAKE’s growth and adoption. (Source)
Conclusion
PancakeSwap is focusing on making its platform scalable by supporting multiple blockchains and improving capital efficiency through gas-saving technologies. Features like automated fee adjustments and fee-sharing reward users and liquidity providers, helping PancakeSwap stay competitive in the decentralized finance (DeFi) space. It will be interesting to see how other decentralized exchanges respond to these improvements in user experience and cost savings.
Why did the price of CAKE fall?
PancakeSwap (CAKE) dropped 8.17% in the last 24 hours, underperforming the overall crypto market, which fell 3.75%. The main reasons include technical price weaknesses, increased competition from other decentralized exchanges (DEXs), and a loss of momentum following the CAKE.PAD launch.
- Technical Breakdown – CAKE’s price fell below a key support level at $2.08. Indicators show it might be oversold, but the trend remains negative.
- DEX Whale Rotation – Large investors moved their funds to competing platforms like Hyperliquid ($16.6 billion inflows) and Aster ($5.7 billion inflows).
- Post-Launch Cooling – The recent CAKE.PAD LeverUp IDO raised $100,000 but failed to keep investor excitement high.
Deep Dive
1. Technical Weakness (Negative Impact)
Overview: CAKE’s price dropped below an important support level at $2.08, which triggered automatic sell orders. The MACD indicator turned negative, and the Relative Strength Index (RSI) is near oversold levels but hasn’t shown signs of a rebound yet.
What this means: Technical analysts see this as confirmation that CAKE is in a downtrend, having lost 32% of its value over the past 60 days. Since the price is below key moving averages ($2.23 for 7-day and $2.56 for 200-day), automated trading systems likely added selling pressure.
2. Increased Competition Among DEXs (Negative Impact)
Overview: Data from November 1 to December 5 shows that large investors (“whales”) moved $16.6 billion into Hyperliquid (HYPE), compared to just $362.6 million for CAKE. Aster (ASTER), reportedly supported by former Binance CEO CZ, attracted $5.7 billion.
What this means: Investors are shifting their capital to newer DEX tokens that seem to have more momentum. Although CAKE’s 24-hour trading volume increased by 34% to $66.4 million, this was mostly due to selling activity as the price dropped.
3. CAKE.PAD Launch Aftermath (Mixed Impact)
Overview: The LeverUp Initial DEX Offering (IDO) on December 10-11 raised $100,000 by selling 10 million LV tokens using CAKE. However, since the tokens were unlocked immediately (no vesting period), many investors sold quickly.
What this means: While the launch burned 10,000 CAKE tokens (PancakeSwap), participants likely sold their CAKE tokens after the event to lock in profits. This increased selling pressure, reflected in a higher turnover ratio of 0.0992, indicating stress on liquidity.
Conclusion
The recent drop in CAKE’s price is driven by technical factors, sector rotation to competing DEXs, and profit-taking after the IDO. Although PancakeSwap continues its monthly token burn (4.99 million CAKE burned in October), which supports long-term value by reducing supply, short-term market sentiment remains weak.
Key point to watch: Can CAKE hold above the $1.98 support level? If it closes below this, the next target could be the 2025 low of $1.60.