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What is expected in the development of CAKE?

PancakeSwap is moving forward with several key developments planned for 2026:

  1. Multichain Perpetuals Expansion – Launching perpetual trading on Base, opBNB, and other new blockchains.
  2. v4 DEX Upgrade (Q1 2026) – Introducing a flexible AMM system with customizable liquidity features.
  3. Crosschain veCAKE Governance – Allowing veCAKE holders to vote on decisions across more than 10 blockchains.
  4. Web3 Quest Platform – Creating a gamified experience to help users learn and engage with DeFi through rewards.

In-Depth Look

1. Multichain Perpetuals Expansion (2026)

What’s happening: PancakeSwap plans to expand its perpetual trading services to new blockchains like Base and opBNB, building on its current presence on Arbitrum and BNB Chain. This move aims to capture more trading volume across different blockchain networks.
Why it matters: This is positive for CAKE holders because perpetual trading generates fees (between 0.01% and 0.1% per trade), which can increase revenue. However, PancakeSwap faces competition from platforms like dYdX and GMX, especially on Ethereum Layer 2 networks, which could affect how many traders choose PancakeSwap.

2. v4 DEX Upgrade (Q1 2026)

What’s happening: The upcoming v4 upgrade will introduce a modular Automated Market Maker (AMM) design. This means developers can build custom liquidity pools with features like adjustable fees and protections against certain trading exploits. The upgrade also aims to cut transaction costs for liquidity providers by about half (PancakeSwap Docs).
Why it matters: This could attract more liquidity to PancakeSwap by making it cheaper and more flexible to provide liquidity. However, the success depends on how many developers adopt the new tools and build on the platform.

3. Crosschain veCAKE Governance (2026)

What’s happening: PancakeSwap wants to expand its governance system so veCAKE token holders can vote on decisions affecting pools across more than 10 blockchains, including Solana and Monad. Currently, voting is mostly limited to the BNB Chain.
Why it matters: This would increase the usefulness of CAKE tokens by giving holders more influence across the entire PancakeSwap ecosystem. However, technical challenges could delay this rollout.

4. Web3 Quest Platform (2026)

What’s happening: PancakeSwap plans to launch a platform that rewards users with CAKE tokens or NFTs for completing DeFi-related tasks like swapping or staking tokens. The goal is to make it easier and more fun for new users to get involved. Early designs suggest it will support social logins for easy access.
Why it matters: This could help grow PancakeSwap’s user base by making DeFi more approachable. However, the platform’s success will depend on how well it’s executed, as similar projects have had mixed results.

Conclusion

PancakeSwap’s 2026 roadmap focuses on improving scalability with the v4 upgrade, unifying governance across multiple blockchains with crosschain veCAKE, and boosting user engagement through the Web3 Quest platform. These steps could strengthen PancakeSwap’s position as a leading decentralized exchange. Still, challenges remain, including fierce competition in the perpetuals market and attracting users new to DeFi. It will also be important to see how CAKE’s token economics evolve to balance rewards with growing demand for its utility.

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What updates are there in the CAKE code base?

PancakeSwap has rolled out new features including cross-chain swaps, fee-earning limit orders, and deeper integration with Solana.

  1. Cross-Chain Swaps Expansion (September 2025) – Now supports Solana, allowing users to swap assets across seven different blockchains in a single transaction.
  2. Fee-Earning Limit Orders (September 2025) – Users can earn a 0.1% fee on every completed limit order through automated on-chain processes.
  3. Solana v3 Launch (July 2025) – Introduced more efficient swaps, native CAKE token bridging, and liquidity farming on Solana.

Deep Dive

1. Cross-Chain Swaps Expansion (September 2025)

What happened: PancakeSwap expanded its cross-chain swapping feature to include Solana, joining six other blockchains: BNB Chain, Ethereum, Arbitrum, Base, zkSync, and Linea. This means users can move assets seamlessly across these networks in just one transaction.
This upgrade uses Relay’s technology, which has handled over 55 million transactions, cutting down bridging times to less than a minute. It also employs LayerZero’s OFT standard, enabling one-to-one CAKE token transfers between Solana and Ethereum-compatible chains.

Why it matters: This makes it easier for users to participate in decentralized finance (DeFi) across multiple blockchains, which could lead to more trading activity and liquidity on PancakeSwap. Faster and simpler cross-chain swaps may increase the platform’s revenue and lead to more CAKE tokens being burned, which can positively affect the token’s value. (Source)

2. Fee-Earning Limit Orders (September 2025)

What happened: PancakeSwap introduced fully automated limit orders that run entirely on-chain. Users who place these orders earn a 0.1% fee whenever their order is executed. This new system replaces the older ORBS-powered order system.

Why it matters: This update improves incentives for traders by allowing them to earn fees, but it shifts some fee earnings away from liquidity providers. Additionally, a 3% fee on winnings from Prediction markets is now used to burn CAKE tokens, which helps reduce the total supply and can support the token’s price. (Source)

3. Solana v3 Launch (July 2025)

What happened: PancakeSwap launched its version 3 automated market maker (AMM) on Solana, featuring concentrated liquidity pools and low-fee swaps. CAKE tokens are now available natively on Solana through Stargate’s OFT standard.
To encourage liquidity, PancakeSwap introduced Turbo Farms on Solana, offering rewards of 500,000 CAKE tokens (worth over $1 million).

Why it matters: This move taps into Solana’s fast and scalable blockchain, attracting new users and trading volume from a major network outside of BNB Chain. It diversifies PancakeSwap’s user base and strengthens CAKE’s presence across multiple ecosystems. (Source)

Conclusion

PancakeSwap is rapidly growing its multi-chain capabilities, focusing on improving user experience and adding features that support CAKE’s value through deflationary mechanisms. With the addition of Solana integration and fee-earning tools, CAKE is expanding beyond its original home on BNB Chain. As Bitcoin continues to dominate the market, it will be interesting to see how these updates affect CAKE’s role in the competitive decentralized exchange (DEX) space.


Which KyberSwap features boost CAKE LPs?

KyberSwap’s FairFlow feature on PancakeSwap (CAKE) helps liquidity providers (LPs) earn more by sharing captured arbitrage profits and adding extra rewards on top of regular fees. This is made possible through PancakeSwap Infinity hooks, as explained in the KyberSwap FairFlow announcement.

  1. PancakeSwap (CAKE) LPs can earn from three sources: regular LP fees, Equilibrium Gain sharing, and KNC liquidity mining rewards, according to the announcement.
  2. FairFlow uses PancakeSwap’s Infinity “Hooks” to capture arbitrage value and return it to LPs as Equilibrium Gain, per the announcement.
  3. Eligible pools and reward claims are available on KyberSwap’s Earn pages on the BNB Chain, detailed on the farming page.

Deep Dive

1. FairFlow Hooks

FairFlow is built on PancakeSwap Infinity’s modular “Hooks.” These hooks allow the system to capture arbitrage profits—extra earnings from price differences—and send them back to LPs as Equilibrium Gain. This process is clearly explained in the KyberSwap FairFlow announcement.

What this means: If you provide liquidity to CAKE trading pairs, FairFlow can boost your earnings by adding profits from arbitrage, not just the usual swap fees.

2. Three Yield Streams

KyberSwap highlights three ways PancakeSwap LPs can earn rewards when participating in FairFlow pools, as outlined in the announcement:

  1. Normal LP fees — the standard fees earned from trades on the platform.
  2. Equilibrium Gain (EG) — additional rewards returned to LPs through FairFlow’s arbitrage capture.
  3. KNC liquidity mining rewards — extra incentives on top of fees and EG sharing.

What this means: By providing liquidity to CAKE pools, you can earn more than just fees. The combination of EG and KNC rewards can increase your overall returns, depending on pool activity and program rules.

3. Where To Earn And Claim

KyberSwap directs LPs to specific Earn pages where they can join eligible pools and claim rewards. The list of participating pools (tagged for farming on BNB Chain) is available on the KyberSwap farming page, with the claiming process described in the announcement.

What this means: To maximize your earnings, supply liquidity to the designated FairFlow pools and follow KyberSwap’s instructions to claim your rewards.

Conclusion

FairFlow introduces a new way for PancakeSwap (CAKE) LPs to earn by sharing arbitrage-derived Equilibrium Gain, stacking with regular fees and KNC incentives, as detailed in the KyberSwap FairFlow announcement. To benefit, choose eligible pools and claim rewards through KyberSwap’s Earn interface, as shown on the farming page.


Why did the price of CAKE go up?

PancakeSwap (CAKE) increased by 2.62% in the last 24 hours, outperforming the overall crypto market’s gain of +1.24%. This movement comes amid mixed factors: a positive product launch and concerns over regulatory scrutiny.

  1. Prediction Market Launch (Positive) – The new zero-fee platform "Probable" launched on the BNB Chain, boosting confidence in the ecosystem.
  2. Technical Rebound (Mixed) – Indicators like an oversold RSI and Fibonacci support suggest a possible short-term price recovery after a 13% drop over the past week.
  3. Regulatory Risk (Negative) – Senator Elizabeth Warren’s investigation into Trump-linked token activity on PancakeSwap raises concerns.

Deep Dive

1. Prediction Market Launch (Positive Impact)

Overview:
On December 16, PancakeSwap partnered with YZi Labs to launch Probable, a prediction market platform on the BNB Chain that charges no fees. Users can bet on cryptocurrency prices, sports, and other events, with results verified on-chain using UMA’s oracle technology. This platform is integrated with PancakeSwap’s large user base.

What this means:

What to watch:
Early trading volumes on Probable and whether the platform contributes to CAKE token burns through revenue sharing.

2. Technical Rebound Signals (Mixed Impact)

Overview:
On December 17, CAKE’s 7-day Relative Strength Index (RSI) dropped to 29.07, indicating the token was oversold. At the same time, the price bounced off the 23.6% Fibonacci retracement level between $1.98 and $2.38. CAKE’s price recovered above the pivot point at $2.04 but remains below key moving averages like the 7-day simple moving average (SMA) at $2.18.

What this means:

Key levels:
If CAKE closes above $2.38 (the 23.6% Fibonacci level), it could aim for $2.65. However, if it falls below $1.98, it risks dropping to new lows.

3. Regulatory Scrutiny (Negative Impact)

Overview:
Senator Elizabeth Warren has called for an investigation by the Treasury and Department of Justice into PancakeSwap’s alleged involvement in laundering $263 million stolen in the Bybit hack and promoting WLFI tokens linked to former President Trump. This request was made on December 17.

What this means:

What to watch:
Responses from Binance, which operates the BNB Chain, and the progress of Warren’s inquiry, with a deadline set for January 12, 2026.

Conclusion

CAKE’s recent price rebound reflects short-term optimism driven by the launch of Probable and some technical buying signals. However, ongoing regulatory concerns and a generally bearish market environment (with a Fear Index at 25) limit the potential for a sustained recovery. The 24-hour gain aligns with growth in BNB Chain’s prediction market sector but does not reverse the longer-term downward trend.

Key points to monitor:
Will trading volume on Probable be enough to counterbalance regulatory fears? Keep an eye on CAKE token burns (currently $190,000 in the last 24 hours from non-swap sources) and developments in the WLFI investigation.


What could affect the price of CAKE?

CAKE’s price is caught between efforts to reduce supply and challenges from government regulations.

  1. Tokenomics 3.0 (Mixed Effects)
    Supply is being cut, but unlocking staked CAKE could lead to more selling.
  2. Regulatory Investigation (Negative Impact)
    A U.S. senator is investigating PancakeSwap as part of a crypto crackdown.
  3. New Prediction Market Launch (Positive Impact)
    A zero-fee prediction platform might increase PancakeSwap’s usefulness.

In-Depth Look

1. Tokenomics 3.0 Changes (Mixed Effects)

What’s happening:
PancakeSwap’s Tokenomics 3.0 plan aims to reduce the total CAKE supply by 20% by 2030. This will happen through daily cuts in how many new CAKE tokens are created (from 40,000 down to 22,500) and by using fees to permanently remove tokens from circulation (called “burning”). However, all staked CAKE tokens (over 336 million) are now unlocked, meaning holders can sell them immediately, which could increase selling pressure in the short term.

Why it matters:
While reducing supply over time could help CAKE’s price go up, the sudden availability of a large number of tokens—especially from big holders like CakePie, which controls 25% of locked CAKE—might push prices down temporarily. In fact, CAKE’s price is still down about 38% compared to last year, despite recent changes.

2. U.S. Regulatory Investigation (Negative Impact)

What’s happening:
Senator Elizabeth Warren has called for a national security investigation into PancakeSwap. The concerns include allegations that the platform was used to launder $263 million stolen in North Korean hacks and to promote politically connected tokens linked to former President Trump.

Why it matters:
This kind of government scrutiny could scare away big investors, force PancakeSwap to require user identity checks (which goes against its decentralized nature), or even lead to the platform being removed from some exchanges. Tokens connected to politics, like WLFI, have already seen sharp price drops (10% in one week).

3. Launch of Probable Prediction Market (Positive Impact)

What’s happening:
PancakeSwap has introduced Probable, a new prediction market platform on the BNB Chain. It charges no fees and was developed with YZi Labs. Probable is integrated with PancakeSwap’s large user base (over 143 million users) and uses UMA oracles to settle bets, requiring CAKE tokens for dispute resolution.

Why it matters:
If Probable captures even a small slice (1%) of the $28 billion prediction market expected by 2025, it could increase trading activity and CAKE token burns. This would help CAKE’s value by showing it has real-world uses beyond just trading.

Summary

CAKE’s future depends on whether the benefits from reducing supply and launching new products can outweigh the risks from regulatory pressure and the sudden availability of staked tokens. The goal of a 4% annual reduction in supply aligns with past successes (2.7% reduction in 2024), but unlocked tokens and government investigations add uncertainty in the near term. The key question is: Will Probable’s growth be strong enough to offset regulatory challenges? Keep an eye on CAKE’s burn rate and trading volume after the token unlock.


What are people saying about CAKE?

The CAKE community is divided between excitement over a potential price breakout and cautious patience due to supply changes. Here’s what’s currently shaping the conversation:

  1. A symmetrical triangle pattern suggests a possible breakout target around $3.40 🚀
  2. Rumors of a Coinbase listing helped push CAKE up 11% in one day 📈
  3. Some skepticism remains about the new Tokenomics 3.0 plan, even though 26 million CAKE tokens have been burned 🔥

Deep Dive

1. Technical Squeeze Pattern (Bullish)

John Morgan (@johnmorganFL) points out that CAKE is showing signs of a breakout:

2. Coinbase Listing Catalyst (Bullish)

EdgenTech (@boy_mi89) highlights that CAKE jumped 11% after Coinbase added support for ERC-20 tokens, making it easier for users to buy and sell CAKE.

3. Tokenomics 3.0 Concerns (Mixed)

The PancakeSwap Governance Forum discusses the impact of recent changes:

Conclusion

Overall, the outlook for CAKE is cautiously optimistic. Technical indicators and exchange listings are driving positive momentum, but concerns about tokenomics changes add some uncertainty. Keep an eye on the $2.95 resistance level—if CAKE breaks above it cleanly, it could confirm the bullish trend. If not, the price may continue to trade sideways for a while.


What is the latest news about CAKE?

PancakeSwap is facing increased regulatory scrutiny while also growing its decentralized finance (DeFi) services. Here are the key updates:

  1. Senator Warren Calls for Investigation (December 17, 2025) – She urges a probe into possible manipulation of tokens linked to former President Trump and risks of money laundering.
  2. Launch of Zero-Fee Prediction Market (December 16, 2025) – PancakeSwap teams up with YZi Labs to introduce Probable, a new prediction market on the BNB Chain with no fees.

In-Depth Look

1. Senator Warren Calls for Investigation (December 17, 2025)

Summary:
U.S. Senator Elizabeth Warren has asked for a national security investigation into PancakeSwap. She claims the platform may have helped launder $263 million stolen in a February 2025 hack of Bybit and promoted tokens connected to World Liberty Financial (WLFI), which is linked to Trump. She points out that PancakeSwap lacks standard identity checks (KYC) and anti-money laundering (AML) controls, and is part of the Binance Chain ecosystem.

What this means for PancakeSwap:
This news is a negative sign for PancakeSwap’s native token, CAKE. Increased U.S. regulatory attention could reduce trading activity and increase costs to comply with new rules. However, because PancakeSwap operates in a decentralized way—meaning no single company controls it—enforcing regulations may be difficult, which could limit the immediate impact. (CoinMarketCap)

2. Launch of Zero-Fee Prediction Market (December 16, 2025)

Summary:
PancakeSwap partnered with YZi Labs to launch Probable, a fully on-chain prediction market platform. This platform uses UMA’s oracle technology to verify event outcomes and covers markets like cryptocurrency prices, sports, and world events. It charges no fees and automatically converts deposits into USDT, a stable digital currency.

What this means for PancakeSwap:
This is a positive development for CAKE, as it broadens PancakeSwap’s services beyond simple token swaps into the $28 billion prediction market industry. With PancakeSwap’s large user base of 143 million, this new feature could attract more users. However, it will face strong competition from existing platforms like Polymarket and Kalshi. (Coinspeaker)

Conclusion

PancakeSwap is currently dealing with regulatory challenges that could threaten its decentralized finance model. At the same time, it is expanding its offerings with innovative products like the Probable prediction market. The key question is whether PancakeSwap’s growth across multiple blockchains can keep pace with increasing U.S. regulatory pressure. Keep an eye on CAKE’s token burn rate (which saw a net increase of 3.8 million tokens minted in November) and how the BNB Chain handles regulatory issues for further insights.