We’re back with another entry from the DeFi Labs community. This latest installment by developer BitByTheByte is Cake Monster, a hyper deflationary and elastic supply token. This time, the DeFi team is targeting PancakeSwap’s Cake. Much like DeFi’s other offerings anchored to currencies like gold and bitcoin, the Cake Monster eats $CAKE for its reserves.
The Cake Monster protocol has unique reserve and reward mechanisms and features an automated hybrid monetary policy. It was built on the Binance Smart Chain, which is a dual-chain architecture that lets users build decentralized apps and digital assets on one blockchain. It is currently available on PancakeSwap’s decentralized exchange built on BSC.
Here’s what you need to know to prepare for getting yourself some $MONSTA.
We cover the DeFi Labs community often, but let’s give you a little refresher. DeFi Labs is the group behind PRIA, an elastic supply token with a monetary policy that cycles between inflation and deflation by using turns. They’re also behind MetaWhaleGold, MetaWhaleBTC, and MetaWhaleDOGE, elastic tokens tied to gold, bitcoin and Dogecoin.
DeFi tokens are financial applications built with blockchain technology. They mirror concepts used in traditional banking and finance while eliminating the need for third-party financial institutions. DeFi tokens use smart contracts built on the blockchain to execute transactions and cut out the middleman.
While DeFi tokens are transforming the financial market, they do come with certain risks. The DeFi economy continues to be rife with poorly written and insecure smart contracts, and volatile market conditions. Overall, this economy remains highly experimental and volatile.
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In the meantime, the overall cryptocurrency market continues to face rampant fraud and a high barrier to entry that makes many wary to get involved. The unregulated nature of the market also makes it an area of high financial risk. For this reason, many experts warn the bubble could soon burst.
The Cake Monster Protocol
Like Defi Labs’ other offerings, the Cake Monster protocol seeks to address issues in the DeFi community by creating a perpetual revenue and value generation machine that supports traders and holders.
- The Cake Monster protocol is designed to run in perpetual cycles, during which it burns off its initial supply until it reaches its programmed minimum of 1 million tokens.
- At the same time, it builds up a protocol backing vault containing $CAKE, which acts as a price anchor and makes itself available as a sophisticated reward system for holders of the native $MONSTA token.
- The protocol implements a fully automated and elastic monetary policy that is both deflationary and inflationary. It will reward early and late entrants without reducing block emission rates or heavily diluting supply.
- The protocol will maintain an ever-growing reserve of $CAKE to support the value of the Cake Monster token and increase the price floor to add stability.
- When the Cake Monster token reaches its programmed cycle end supply, holders can claim their share of the collected $CAKE along the way and keep their native tokens for the upcoming cycle. After the cycle ends, the protocol will relaunch, and start again.
- By holding the Cake Monster token in their wallet, holders will be frequently rewarded with $CAKE. Additionally, Cake By holding the $MONSTA token in their wallet, holders will be frequently rewarded with crumbs (small bits of $CAKE). Additionally, $MONSTA token rewards will be distributed to holders for interacting with the protocol using unique and fun gamification techniques.
Trust The Process
- The initial supply of the token is 10 billion. There are no readily accessible mint functions, but minting occurs during some of the protocol logic. There is an internal burn function so that no one can burn their own tokens.
- A total fee of 5% is assessed on every $MONSTA transaction which is split in half with 2.5% burned (reducing total supply), and 2.5% used to buy and add liquidity to the locked liquidity pool.
- The protocol features a unique “Auto Cash Out” function. When a user has not had any activity with their holdings in 50 days, other users can initiate the Auto Cash Out function which allows users to “force sell” a portion of the inactive users’ $MONSTA tokens to keep the protocol active and moving. Users that initiate the function are rewarded with tokens as a stipend for gas fees incurred to help manage the protocol.
- Fear not, the Auto-Cashout simply sells a portion of the current wallet balance of $MONSTA for $BNB, and this $BNB is given back to the holder. The sold $MONSTA is then burned to decrease the supply and to NOT impact the $MONSTA price.
- Each time the $MONSTA supply decreases by 0.1%, the taxed $MONSTA is stored in a temporary vault. When the completion indicator reaches 100%, holders can trigger the “Cake Making” function which is an action that does two things: Buys $CAKE and adds it to The Community $CAKE Gravity Vault and Auto-adds liquidity to PancakeSwap. Only one holder can call the “make” function at a time and when successful, is placed on a rotating waiting list to prevent spam and abuse of the system and allow other holders a chance to participate.
- Once the total supply drops below 1 million tokens, anyone can execute the finish function which removes liquidity added by the Reserve, burns the resulting CakeMonster tokens, and disallows trading. This can also occur when two years have passed, or no management activity has happened in 124 days.
- After the finish has been executed, users who hold tokens can claim a proportional amount of the asset stored in the Reserve and a proportional amount of the new supply. Thirty-five days after the finish function is executed, anyone can re-launch the protocol which reset all values and mints the initial total supply of 10 billion to the reserve.
So does it work?
On May 28, Cake Monsters’ creators announced it had passed its first security audit. Cake Monster’s smart contract was audited by Solidity Finance, a third-party audit firm that has completed more than 300 audits to date. No security issues were detected and the smart contract code passed all tested categories.
What is Cake?
Let’s take a step back and look at the impetus behind Cake Monster: PancakeSwap’s $CAKE token.
PancakeSwap is a decentralized cryptocurrency exchange built on Binance Smart Chain and powered by the CAKE token. This token is one of several tokens used within the PancakeSwap protocol and made available for token swaps.
PancakeSwap is an automated market maker and decentralized application that features liquidity pools where users can earn fees from staking, lending, and yield farming.
Yield farming, or liquidity mining, is a term used in DeFi to describe the process of strategizing the movement of funds between multiple smart contract-based DeFi lending protocols to maximize returns. The PancakeSwap platform makes this process more efficient by providing features that provide an all-in-one yield optimization platform built around the Pancake token.
It was launched in September 2020 and has a market capitalization of more than $5 billion. Its current price at the time of this writing was more than $17.
How to Get Cake Monster
In the early days of Cake Monster, you could get your hands on the coin via airdrops and signing up for the whitelist.
In order to be transparent and build confidence in Cake Monster, its creators been committed to stabilizing price action from day one. For this reason, any strategic partners that are paid in the Cake Monster token will have vested payment schedules. Additionally, most partners will be paid in Binance Coin when possible.
Defi Labs also created a pre-sale whitelist lottery with additional weighted slots for loyal DeFi Labs holders. They’ve also committed to ensuring team tokens are vested and unlocked gradually, no whales from pre-sale, low circulating supply at launch, and low initial market capitalization. To help them meet their goals, the group has also invested marketing resources to ensure high trading volume.
Here’s a breakdown of the token distribution:
- Pre-sale: 50%
- Community Engagement: 30%
- Public Sale: 10%
- Team: 10%
In June, Cake Monster started airdropping 200 million $MONSTA to the community. Every address that successfully completed the applicable whitelisting received a share of the 200 million tokens. Over a period of three weeks after launch, Cake Monster is distributing tokens across five different airdrop events, allocating 20% of the total per airdrop. In order to qualify for each airdrop, holders need to have the same or more $MONSTA than the preceding airdrop snapshot. Each airdrop can be claimed until the start of the next airdrop at the Cake Monster website. The last airdrop can be claimed for 7 days at which time all unclaimed tokens will be burned.
Visit Cake Monster’s Medium page for a complete schedule of the airdrops.
You can also purchase $MONSTA through the Cake Monster website. $MONSTA can be purchased via cryptocurrency wallets including MetaMask, Trust Wallet and Binance Connect.