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August 11 – 20, 2025
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Cake War ignites the BSC ecosystem and may create a new $1 billion Decentralized Finance giant.
Cake War: A New Opportunity in the BSC Ecosystem
Recently, a new DeFi competition is brewing in the BSC ecosystem, known as "Cake War". This competition could give rise to a DeFi protocol valued at around $1 billion, injecting new vitality into the entire ecosystem.
Overview of Cake War
Cake has upgraded its token economic model from the traditional syrup pool mechanism to a veTokenomics system similar to Curve. This change supports users locking Cake to obtain veCake, which is used to enhance LP returns and participate in governance voting, introducing a continuous revenue incentive mechanism to the system.
This upgrade creates opportunities for projects similar to Convex, allowing them to gain influence by competing for veCake shares. The launch of Cake V3 adds a new dimension to this competition, similar to Uniswap V3, supporting concentrated liquidity pools (CLAMM).
A key advantage of Cake V3 is that it provides corresponding incentives based on the concentration of liquidity distribution, allowing users to freely deploy positions. This flexibility makes it an enhanced version of Uniswap V3. Additionally, Cake is compatible with the trading modes of Uniswap V2 and Curve V1, enabling it to meet diverse liquidity needs.
How to Participate
Currently, there are three main participants:
Cakepie and Skillet have launched a coin deposit airdrop event, promising additional allocation of IDO shares. With its previous successful experience, Cakepie has already attracted over $6 million in Cake deposits.
Revenue Estimation
Referring to the performance of similar projects in the past, early participants may receive substantial returns. However, the profit estimates involve multiple uncertain factors, including the scale of participants, airdrop shares, IDO allocations, expected total valuations, and potential exit losses.
A rough estimate suggests that if Cakepie's performance can reach three times that of similar projects, early participants' total returns could be around 7.5 million dollars. However, this is just a rough estimate, and actual results may vary significantly.
Risk Warning
Participants should be wary of de-peg risks. For example, in similar projects previously, the opening price of the token may be lower than expected, resulting in principal losses. Although it may rebound later, participants who are eager to exit may suffer significant losses.
Outlook
Cake War is expected to bring a total locked value of 1 billion USD to the BNB Chain, a Convex-like project with a fully diluted valuation of 100 million USD, which will significantly enhance the activity of the ecosystem. Early participants may receive substantial returns in the short term, but they should also carefully assess the risks.
Given Binance's resource advantages, the development of Cake War is worth ongoing attention. However, due to various uncertainties, it is currently difficult to provide an accurate expectation. Investors should closely monitor the specific details released by each participant and comprehensively assess the potential returns and risks.