Announcing CAKE Lending Vault and Leveraged Yield Farming

Dear alpacas,

We senior alpacas are excited to announce that we’re adding support for a CAKE lending vault as well as leveraged yield farming pools that borrow CAKE! We know many in the Herd have asked for this, so we’re happy to oblige.

We will support 3 LYF pools for CAKE borrowing:

• BNB-CAKE (3x)
• BUSD-CAKE (3x)
• USDT-CAKE (3x)

💲Benefits to CAKE lenders:

• As CAKE lenders, you’ll earn interest from borrowed CAKE. The lending interest will vary between 0% — 150% APR (equaling 0% — 348% APY compounded continuously), based on the pool’s utilization level. Most of the time though, we expect the borrowing rate to be stable around 10-20% APR. You can learn more about our interest rate model here.
• You‘ll also be able to receive ALPACA rewards by staking ibCAKE(which you’ll get after depositing CAKE) on the Stake page. We’ll be allocating 50 reward points (~6,200 ALPACA / week based on current emissions rate) to ibCAKE stakers.

💲Benefits to CAKE borrowers:

• By farming CAKE pairs, you’ll receive Yield Farming rewards and Trading Fees from the underlying DEX.
• If you leveraged yield farm above 1x, you’ll also receive ALPACA rewards. We’ll be allocating 25 reward points (~3,100 ALPACA / week based on current emissions rate) to leveraged farmers who borrow CAKE.

🕔Release Timeline

• CAKE deposit vault & ibCAKE staking: Thursday, June 2nd, 2022 at 7 AM GMT. You’ll be able to start depositing your CAKE on our Lend Page and stake your ibCAKE (which you’ll get after depositing CAKE) for ALPACA rewards on the Stake Page.
• Leveraged farming pool: Thursday, June 2nd, 2022 at 10 AM GMT. You’ll be able to start opening leveraged positions borrowing CAKE on its associated pairs on our Farm page.