PancakeSwap (CAKE): 37 Months of Burns—Is CAKE Really Deflationary? | Daily Crypto IQ

0:02I never knew. Hello. Nat. Yeah, yeah, yeah. hey. you can't do it. Hey, hey, hey. I never knew. Oh yeah. Hey hey hey.

4:18I think that we're just holding on to something. Down. Heat. I think that we just holding on to something. I think that we're just holding on to Just tell me what's over Let's go. Welcome in everybody to the underground crypto deep dive research show token on topsy report and tonight we're going to be going over

6:20cake. Anybody ever used Pancake Swap? Anybody out there? B&B, Smart Chain, one of the places I really learned DeFi originally. We had the the summer of DeFi and it was amazing and it mostly existed years ago on You Named It Finance Smart Chain. Shout out to all my undergrounders. How's everybody doing? Melissa, thank you for posting the links as always. Struggle heart in the building. The funky ferret. We got Blues

6:54Guy and of course the thrifting Ron. Who could that be? Just just getting this coffee in. All right, so of course we're going to talk about some news before we actually get into our token autopsy report today. Give a moment for everybody to hop in. Let me zoom in here. Oh, that's out. Let me zoom in. There we go. What do we have on the news reel for today? Anything interesting that we

7:41should know about? I'm not sure. All right. Yeah, I was hoping this story would come up cuz I saw this bouncing around, but I didn't actually really dig into it. Ripple received final approval for its US National Trust Bank. Saw a lot of people saying it got the green light today. Okay. I I did think it was interesting. It also said that it's not necessarily allowed to issue loans or anything like that. It's just allowed to custody stuff for Ripple.

8:19Sugarart says, "I've been extra tired lately. I can't really keep looking at the screen for that long." Hey, I understand. Some days we're tired. We're exhausted. And I feel you guys, cuz I am, too. And I'm here. At least you guys get to just watch along and you don't have to set it all up. So Ripple announced that the OC granted final approval for Ripple National Trust Bank, a federally supervised National Trust Bank. The bank will be allowed to

8:50be manage to manage the segregated reserve backing RLUSD reserve as or serve as collateral trustee. I'm still waking up for RLUSD holders and provide fiduciary. Fidiciary, that's a weird word. I've not I don't even know if I've ever said that in my life. Digital asset custody. RLUSD itself will continue to be issued by Ripple's New York regulated standard custody in trust company. Very surprised

9:25that they would do it out of New York. And Ripple didn't stop there. BNY expanded its relationship with Ripple, adding XRP and RLUSD custody support and and exploring uh tokenized trade finance with the CF, the C2FO. That's it's interesting. I got to look into that. The idea is to finance approved corporate invoices over the XRP ledger so that supplies can receive funds much faster instead of waiting days for conventional banking rails. Ripple also

10:01announced that RLUSD integration with Robin Hood for customer access and in uh Treasury International settlement, institutional settlement. So basically they're not going to be allowed to issue their own loans and things like that, but what they are going to be able to do is custody uh institutional crypto and of course their own RLUSD reserves. Ripple is moving beyond XRP payment company into something much

10:29closer to a regulated institutional financial stack. Stable coins plus federal trust co bank custody uh trade finance and brokerage. Yeah. So, it's got a lot of things that it can do, but there are some things that you would think with a bank they'd be able to give loans and stuff. That's that's not what they're doing, man. Greetings and gratitude undergrounder says Blues Guy. Welcome in. Welcome in.

11:06My coffee cup is too big for my my coaster. What's up with that? So, Ethereum fixed another Gladster issue, right? That was one of their upgrades that they've kind of been all over the place with. This is This one could have misdirected validator deposit. So, they're catching a lot of this stuff before they really had serious issues. That's what test net is for. After Ethereum delay, Gladster Hoodie test because Hoodie I believe is

11:37the test net, right? Because of the earlier gas accounting concerns, developers have now patched another edge case. The problem involved builders and validators using the same public key under the upcoming Glsterdam rules. I don't know what that is. Golis glois. I don't know why I'm even trying to say that. uh that could have resulted in Ethereum intended for new validators being credited to a builder's account instead.

12:10So the Ethereum being accredited to the wrong accounts potentially leaving the staking service unable to recover the deposit. No losses actually occurred because this was found before the mainet deployment. Again, uh test net doing what a test net does. Developers initially rejected the fix, then reconsidered, while the broader Glamsterdam test delay gave them more time to analyze it. Ethereum's upgrade delay is starting to look increasingly

12:41justified, like they made the right call. Uh, they're finding exactly the kind of weird cross component behavior you want to find before touching mainet staking funds. Yeah, hopefully they don't mess up any of that mainet staking. I think people would be very upset. and the Clarity Act update. Treasury says that the SEC and the CFTC may have to fill the gap because Clarity Act didn't really get put through. So, speaking today at Ripple Ripple

13:12swell conference, I like that swell conference. What is that supposed to mean? Treasury uh Secretary Scott Bessant acknowledged that Congress failed to pass the Clarity Act and said Treasury can work with the SEC and the CFTC to clarify crypto rules. Anyways, he also discussed safeguards against crypto companies being cut off from the banking service. Bessent frame the digital asset as part of a broader US China technology

13:42competition alongside AI and semiconductor. arguing that dollarback stable coins could reinforce global dollar usage and demand for US government debt. So the practical regulatory picture is changing here. Clarity stalled. Genius Act is already being implemented. SEC CFTC rulemaking may increasingly substitute for legislation. And maybe that's what they wanted because those two really wanted to be in

14:15charge. That matters because agency rules can still define custody, token issuant, DeFi treatment, exchange registration, and market structure even without a new congressional market structure law. Clarity Act did not failing did not mean crypto regulation stopped. It may mean more of the US crypto rule book gets written by regulators instead of Congress. And when we come back to our news, we will talk about Hyperlid is building a regulated

14:47version of HIP 3 with Kraken's parent company. Let's hop over to Coin Gecko. Let's take a look at that cake. Tuesday. Tuesdays are not usually slow. Where are all my people at? Let's keep that chat running. Hit him with a splash. I believe that Melissa is working today. It was nice to have her on the stream yesterday. She's been so busy. All right, Pancake Swap at $2.7.

15:42It's actually still up 60% on its overall chart, which is pretty good because Cake has been out a long time. So, it looks like September 28th, 2020, Kate came out and it is like a$130 when it came out. You got 672 million in market cap. Surprising. I I would think it would be at least a billion. What is it by market cap? Number 92 by market cap. So, really barely in the top 100. I think of cake

16:20as such a staple for DeFi uh B&B Smart Chain, but it's been a it's been a long time since all the action was on B&B Smart Chain, right? Max total 400 million, circulating supply 325 million. Tokconomics looking pretty good. Remember, a lot of that is probably because it is a more mature project. It's been out for six years, probably a little over six years. So, let's see. We have a lot of different integration here. You

16:54can see all the different contracts that are official cake contracts, right? So, it is used across a lot of different platforms and blockchains. It is yield farming, perpetuals, a launchpad, automated market maker, decentralized finance, exchange-based tokens. It has a lot going on. And of course, YZI Labs, even Bass Native, you can get it all over the place, but I would say the best place to probably get it is probably a decentralized exchange

17:25like Pancake Swap itself. That's where I'd buy it from, but that's just because I'm highly familiar with Pancake Swap. Camston in the house. Welcome in. Welcome in. Surprised we didn't see you yesterday, Camston. Or maybe we did. Were you here yesterday, Camp Hamster? >> Again, of course, for the record, rest in peace, Reliable Jay. You will be

17:55missed. I'm not going to talk about it as much as I did yesterday because I feel like I spent quite a bit of time on it, but we will certainly miss Reliable Jay. And in remembrance of him, we will say that quite often. All right, I think I covered everything here. Let's go take a look at a crypto bubble for a half second and then we're going to hop into this. >> Let's toggle our 1 through 1,200 here. Huh.

18:32Did we fall back down for BTC again? What is Bitcoin at right now? Now we're at 80,700. That's not too bad. Best category of the day right now is like 600 to 700, which is way down the line. All right, let's move along here to what we came to do. The token autopsy report of Cake, aka the main token of Pancake Swap, aka Binance Smart Chain. 37 months of net burns. Is cake finally

19:16deflationary? You're grabbing it under a billion dollars right now. If we really do kick off here, some kind of bull run. The question really becomes, do we get like a real explosion of DeFi on Binance Smart Chain or does it start kind of moving more to or does it now live like cuz it used to be so concentrated over there but are we now looking at it's spread out between Salana, Robin Hood, even some Avalanche

19:52and so how much of it still cares about the Binance Smart Chain and that'll be directly linked to cake usage right because that is one of the main swaps over there. So, 2021 inflation meme versus 2026 cash flow engine. The 2021 memory. Most traders still remember cake as a 2021 yield farm printer, minting 40 cake per block and crashing from $43 downward towards a

20:26buck. the 2026 reality check. In 2025 2026, Pancake Swap killed off VC staking inflation, cut its hard cap to 400 million, and logged 37 straight months of net supply deflation, backed by 155 million a year in real user fees. Well, that sounds pretty good. But tonight we verify whether the 59.8 million weekly burn is really scarcity or accounting theater. Exactly. Well,

21:08you may not know veake and gauges are retired. Old model retired May 2025 under tokconomics 3.0. Pancake Swap permanently shut down the VE Cake voting, vote locking, gauge voting, and the 5% staking revenue share. Where does that money go now? Well, all locked holders were allowed to unlock one to one with zero penalties. And that 5% fee stream now goes 100% into weekly cake burns. I like that. Pancake Swap there is starting to become

21:45highly interesting to me just knowing about it actually being deflationary decoding the 59 million weekly burn headline. So you have of course your 59 million cake that equals phantom mint plus burn. Then you have negative 135,000 real net deflationary last week. So even last week it was deflationary. Pancake Swap emitted 152,599 real cake to farms lotteryies last week and burned 2,888,000

22:28cake right from real product fees shrinking the true supply by 135. called 136,000 cake about 283,000. Very interesting. That is definitely the type of information that I'm here to find in all in all honesty. I'm here to find those buybacks and those burns or a burn that comes through another mechanism is good all the same. Trying to get this chat up. I don't know where my chat went. I got to get it back up. Hold on.

23:23>> Plague Dogs in the building. Welcome in. Welcome in. Good to see you. Here we are going over cake. You ever own any cake? that old Binance Smart Chain favorite best swap. All right, three more surprises in the 2026 stack here. Of course, the hard cap cut to 400 million. We were looking at that. That's going to be your max supply. And that was on January 19th, 2026. Governance lowered Cake's hard maximum

23:56supply again from 450 million down to 400 million cake with actual supply at about 329. So that's a hard cap. That's as high as it's going to go. Plague Dog says, "Sorry I'm late, friends. Fall cleaning. I have indeed own cake. See, I knew it. Most people who've been around for a while have. Welcome in. Welcome in. Don't worry, we're just kicking off here. So, we have

24:26the hard cap now gone from 450 million to 400 million. Of course, getting rid of 50 million 24/7 tokenized stock on chain with Pancake Swap. So, that's very interesting. And that's with Binance's Btock. That's how you'll know if it's if it's uh Binance related, right? Btock. No cake needed to swap. So users never need to hold Cake to trade. Value reaches Cake automatically when the

24:58protocol fee buy and burns the token every Monday. Signal versus noise. Right. BTC holds 80,000 500. Right. Right now we're at about 80,700 I believe. as Fed meeting begins. Bitcoin briefly dipped below 80,000 on Tuesday morning before recovering to 80,500 as the as the 2-day FOMC meeting has began. While Asian tech stocks rallied

25:33on AI infrastructure spending, macro liquidity signals and a cautious prefed market, capital rotates away from high inflation narrative tokens towards cash flowing dexes generating 337,000 a day in real swap fees. The OC rule f uh fi final here, we were talking about this earlier. Ripple's charter charter is still conditional. has to do with their bank, right? And then we have the OC finalized the Genius Act rules on October 2021 or two 2126.

26:10It's a lot of 20s going on there, right? And we went over this earlier so I won't be repetitive. Uh DEX liquidity implication regulated stable coins can deepen 20. Okay, I see what they're saying. So regulated stable coins can deepen 24/7 onchain liquidity. That trend may benefit Pancake Swap pools, but a charter decision by itself does not prove cake burn demand. Signal versus noise. All right. So, following the SEC's new

26:51FAQs on conditional relief for tokenized security venues, 247 tokenized equity trading, Onondo, BTO, XTO, stuff like that is surging across B&B chain, Ethereum, and Robin Hood chain. Product signal with a fee catch, right? Tokenized stocks bring massive weekend volume, but zero fee promos on BTO and 0.01% RWA fee tiers generate far less cake burn per dollar than the 25% crypto pools do.

27:30The story behind tonight's autopsy. Well, the problem is first generation dexes either starve token holders of cash flow uni for years or drowned them in farm inflation and 4-year VE token lockups. VE in front of the token ticker usually meaning something to do with voting, right? But you had to lock up to get those tokens. The shift in 2025 2026, Pancake Swap launched Infinity V4, retired VE Cake, slashed real farm

28:02emissions uh to 21,800 cake per day, cut the cap to 400 million, the max cap of tokens, right, and routed every product's fee share to weekly burns. The payoff has been 37 consecutive months of netcake deflation on a 679 million market cap with zero venture capitalist unlock cliffs. That that that right there is kind of bullish. So, let's get into it. We'll call this act one, the product and the ecosystem.

28:37How does a 2.3 billion 12chain super decks actually work in 2026? How far has it come since where it actually started at where most of us probably used to or familiar with using Pancake Swap many years ago? Who's used Pancake Swap in say the last 12 months? I don't think I have. I might have, but I don't think I have. So verified identity and 12 chain footprint can kinnacle right BMBB chain contracts

29:13is just your contract 96.9 call that 97 of percent of pancake swap 2.3 billion TVL lives on the B&B smart chain so no shocker most of pancake swap lives on B&B smart chain chain 11 additional live chains as well. Of course, it has interaction and lives partly on Ethereum, Base, Arbitum, Salana, Robin Hood, Manad, Aptos, ZKYNC, uh, Lena, OPMBB, and Polygon zero knowledge EVM.

29:52So, it's very interoperable. We showed that at the very beginning. Do not mix up these three entities. You have the kitchen. They are the core team. uh incubated alongside Binance in 2020, manages front-end treasury ops and the weekly burn multi- signature. So that's the core team there. Then you have pancake swap protocol onchain smart contracts across 12 chains and then you have the cake token itself

30:25pure buyback and burn plus governance plus cake.pad pad, which is a launchpad, access token, zero corporate equity, and zero inflationary signals staking since May 2025 since they changed things up on us. So, section two, three real user groups driving 825 million per day. Well, you have real uh retail, right? Retail, real retail. Tried to say all of that at once. and MEV protected swappers, right? So, you have people actually using it to swap and then you

31:02have retail using it as well. 190 million plus cumulative users swapping tokens on B&B chain, base, arbitrum, salana using built-in mev, garden, gasless, pancake swap x routing. Of course, me if you're unfamiliar, maximal extractable value. which just a term that we use for anything where you try to make money off of transactions, right? Sandwich attacks, moving them forward, moving your transaction ahead or moving it back, all of these type of

31:35things. Concentrated LPS and AI trading agents. Well, liquidity providers and automated BMBB agent studio V3 range rebalancing bot earning 124 million a year in real swap fees. Then we have a 247 RWA perpetuals and launchpad traders uh traders buying weekend tokenized stocks 200x order book pers and committing cake into cake.pad launches. So, those are that's what's driving this ecosystem. That's what we're really

32:12trying to get across to you. Let me check out that chat. Where's all my people tonight? Let's keep this going. It says, "Whoa, whoa, whoa. Who you calling a mev around here?" You know what I mean? It's hilarious. Hey, we got Plague Dogs for the comedy tonight. I don't know where CCP is. We got to get you guys together. If we got both of you going, this' be hilarious. Of course, shout out to all my

32:59undergrounders. I don't know where all my people are tonight, though. I'm glad that you're here, Plague Dogs. Good to see you, Blues Guy. you still out there. Legacy automated market maker pools versus singleton and hooks singleton. I don't know what that is. Legacy V2 and V3 separate pools, right? They're not in the same spot. They are separate pools. Every new token pair deploys a brand new smart contract. Multihop swaps

33:34transfer tokens between separate pool contracts on every hop costing extra gas. Pancake swap infinity V4 singleton. So this is the new stuff, right? So you got V2, V3 on one side, legacy, what's been around for forever. And then we have this new infinity V4 and they call it uh singleton. All pools live inside one singleton vault and pool manager. Cutting a new pool creates gas by 99%. So cutting new pool creation gas by 99%. Got it. Flash

34:14accounting nets balances across multiple hops and settles only once at the end. Almost sounds like like a rollup of some type. So section four here is going to be product number one exchange v2v3 workh horses right so exchange v2 classic fullrange constant product automated market maker gets a 25% fixed swap fee generated about 23.7 million in 24hour volume 1 billion in 30 days and burned 101532

34:54cake about 209,000 worth last week alone. So even though that V2's been around a while, it sounds like a workhorse for sure. Concentrated. So now we're talking about the exchange V3, right? Concentrated liquidity across four fee tiers. Power 641 million in 24hour volume. Volume, we're talking about volume. and burned about 137,538 cake last week. About 283,000. So

35:29there's a lot of money to generate this much in fees. There has to be a lot of money rowing through because it generated 283,000 dollars worth of cake fees off of a 01 05 uh 025 and even 0.1. So there's different tiers of fees. Okay, that makes more sense because I was like that's a lot to generate from 01. There must be a ton of liquidity flowing through there. And section 4B. So

36:04product number two is Pancake Swaps Infinity. We have dual automated market maker engines in one that supports both concentrated liquidity and liquidity book constant sum bins or bin pool manager with zero slippage bin swaps and native B&B Ethereum. So customizable hooks each pool can attach an immutable hook contract for dynamic fees limit orders custom oracles or LP rebates. And we have real transactions already.

36:40So since it's been live April 20 2025 80,000 point 80,000 80.3 million in total value locked. I don't know why I was messing that up. So since April 2025 80.3 million TVL on Binance Smart Chain and base burning about 22,300 cake. So, we have burning going on in a lot of places, but that V2 is the one that's really generating the most. Pancake Swap X and 247 RWA. So, right now, what we're doing is we're kind of

37:19explaining all of the different products inside Cake's ecosystem, right? Or Pancake Swap's ecosystem. Cake is the token. Welcome in. Welcome in. Thank you for being here. So pancake swaps gasless intense right that lives on B&B chain Ethereum arbitum faves and Robin Hood chain aggregates onchain pools private market makers RFQ quotes for gasf free swaps with built-in mev

37:55protection this is the newest stuff right this is the latest tech 24/7 tokenized stock and ETFs live since 2026 6 via Ono Finance. So, this all runs through Ono Finance X stocks and Binance's Btocks trade. You can trade equities 24/7, including the weekends. That's pretty cool stuff. Perpetuals, predictions, and lottery. You know, they got to get a little bite of that prediction markets. Although, you've heard the prediction market stuff

38:26really quiet down. So, order book perpetuals, right? Powered by Aster and we just did a token autopsy of Aster and I really liked Aster. So, you can see that it only makes sense that Pancake Swap lives on Binance Smart Chain CZ, you know, in all of that and then they use Aster to power their perpetuals. Makes perfect sense. upgraded in May to June 2026 with full order book up to about 200x leverage and an AI co-pilot

39:06assistant. 20% of protocol profits burn cake tokens. They got prediction markets 5m minute B&B BTC or Ethereum up or down rounds right takes a 3% pot fee and 100% of retained revenue by uh buys and burns cake. So that's good. let them do their prediction market uh and keep burning some cake. I'm all for that. Then you have a lottery which is 56,000 weekly burn. Tickets are bought in cake. 20% every pot is permanently burned. So 25,500

39:47cake was burned last week. Dude, there's cake being burned all over the place. Like all over this ecosystem. They they're burning. I'm I'm liking cake. I I love when we have like real deflationary mechanisms. They put a hard cap. They lowered the hard cap of your max supply. Everything looking really smart for the setup and the evolution of this deck. And it just kind of goes to show that even some of the old stuff that might might have been set up in a

40:21way that wasn't really on the up and up for where we are today in crypto, they can change. So any project that you've been in for a long time that's not integrating, that's not evolving, that's not doing new stuff, that's concerning because even Cake is capable of re-evaluating what they're doing and fixing it. Cake.pad which is a launchpad right springboard launchpads right so we have cake.pad it launched in October 2025 it

40:51replaced a complex I cakeve cake initial farm offering right so they made it simpler with this cake pad users simply commit liquid cake with no staking lock up and 100% of all participation fees are permanently burned. They're just burning hundreds of thousands of cake everywhere. This is awesome. Uh, springboard no code meme launchpad. So, zero fee bonding curve token launcher sounds a lot like um, pump.f fun on B&B chain that automatically graduates

41:24liquidity onto pancake swap pools. Proven cash cow today versus a multi-chain expansion. So, let's talk about the proven live at scale today. 2.3 billion in TVL, 825 million in 24-hour DEX volume, and 188 million in annual fees. 37 consecutive months of net cake supply. And that's really just probably starting to really be felt inside the supply cuz that didn't go live until what, April 2025 or something like that

42:01if I remember correctly. It's off the top of my head. Still scaling and in rollout. So, what do we have kind of coming out here? Well, we have migrating the 2.3 billion legacy volume 2 and volume 3 liquidity onto Panc uh Pancake Swap Infinity. That V2, that old legacy V2 really is a workhorse. It produces a ton of burn revenue. Uh I hope that they don't migrate it anytime soon. And then of course, you have growing nonBinance smart chain chains, right?

42:33So things going on elsewhere. Proven live at scale. Today we have live infinity which is like the latest project. That's your V4. Um 80.3 million TVL. You have cake pad 24/7 RWAS and order pers just right here. Their new V4 a launchpad 24/7 RWAS and order book pers shows that Pancake Swap has not got old. They didn't sit back and fall asleep at the wheel while crypto moved on very quickly. This space moves so quickly,

43:08right? And so they've they've been at the wheel. They've been steering. They've been upgrading. They've been re-evaluating. You can tell. And we we dive projects that are older that do not seem to have this kind of attention to what is going on today. So what actually happens when Marcus, who is just going to be our person for our fictitious example here. So, a person named Marcus hypothetically experimentally swaps 25,000 on Pancake Swap. So, this is

43:37where we kind of use this to explain what happens. MevGard, which I love that they have a MevGuard. I didn't know that they had that. I'll be using Pancake Swap more often now. And smart router. So, let's say hypothetically our example here, Marcus submits a $25,000 swap through Pancake Swap Meguard and it's probably not worth reading that. So, Sandwich bots cannot frontr run him.

44:08That's really what it's all about. The pool then execution and fee deduction. So, if routed through a 0.05% V3 pool, Marcus pays about $12.50. Not so bad for $25,000. If routed through a 0.25 V2 or V3 pool, he'll pay a lot more. $62.50. Still not bad on $25,000. Automatic fee split here. The smart contract automatically then splits that fee between inrange liquidity pools and the cake burn furnace gets 15 to 23% and

44:49the treasury gets the remaining 9 to 19%. Blues guy welcome back says thanks for all the deep dives broed goes a long way. You know it does. Thank you for being here as always. I appreciate you. Let's keep that chat running, everybody. It pulls more people into the channel. Keeping that chat running matters more than you could ever know. Smash that like button. Subscribe. I haven't said it today. And

45:18make sure you have one of the memberships. $3 a month. You get custom emojis. I have higher tiers if you feel like you want to um support me even more so that I can be here pretty much 247 for you guys. where Marcus our example here swaps fees actually go. So we kind of went through it but let's just lay it out again in a 05 pool where he paid $12.50 on his $25,000 paid immediately to inrange liquidity

45:49providers 66%. 15% swept to buybacks and burn cake on Monday, right? Because it burns every Monday. In a 0.25 pool, he would have paid more like $62.50. This is like V2 versus V3 where the fees are turned up quite a bit. $42 of that would go immediately to liquidity providers. and 23% or $14 would be going to your buybacks to be burned on Monday.

46:24Inside Pancake Swap Infinity, so infinity is the V4. It's kind of the latest stuff as far as Pancake Swap is concerned. So the vault flash accounting holds all pool tokens in one contract uses EIP1 1153 transient storage to net balances at the end of the multihop trade. So it balances everything right. Singleton pool manager hopefully I'm saying that right. So CL pool manager plus bin pool manager

47:09cutting pool deployment gas by 99%. Then we have immutable hooks optional per pool smart contract enabling dynamic fees onchain limit orders and custom oracles. Sounds like that with this V4, we're we're really limiting fees. And if a lot of the fees are being burned and they're going to move out of those V2, V3s into V4, how much does that change what gets burned moving forward? Is it going to be much less?

47:44Why the dashboard says 59.8 million is burned? The legacy 2020 contract quirk, right? Cake token is still owned by the legacy Master Chef Ve which is hardcoded to mint 40 cake per block. Migrating the token contract would break six years of centralized exchange listing and bridges. So they can't necessarily do that. the automated burn sweep. Instead, an automated chain link job immediately

48:20routes chain link. I think that's just a term here, not I don't think that's referencing uh referencing the actual project. So, instead, an automated chain link job immediately routes 99.7% straight to the burn address before it ever circulates. So, they found a workaround. Originally, the V1 was hardcoded to meant 40k cake per block. The way that they've got

48:48around that to not have all of that inflation is just to immediately burn 99.7% of it. So, it's almost as if it never happens. So, only 152,600 cake a week actually enters the economy. Old veake bloat versus tokconomics 3.0. Tokconomics 3.0 0. Very much the upgrade that they've done lately. Plague Dogs, my man. Long time no see, bro. Hope life is treating you good and you're treating life good as well. Pancakes making me hungry, right, Blues

49:24Guy? I feel that one. Shout out to all the undergrounders. All right, so the old veake bloat inflation versus the new tokconomic 3.0. What has changed? Well, pre-Apppril 2025, the VE Cake Bloat Protocol printed extra cake to pay stakers and gave away 5% of trading fees as revenue share. Liquid rappers capture gauge bribes while retail lock tokens until 2028 post or after April 2025 tokconomics to

50:003.0. zero staking inflation, zero gauge bribes, and zero four-year lockups. 100% of the former revenue share stream now permanently destroys cake supply every week. Love the burns, but it does seem like the burns might get turned down at some point if they do away with that V2 v3 and move everything into that V4. So real fees pay liquidity pools 7.5 times more than pharma emission. Over the last 30 days, traders paid about 8 million directly into Pancake

50:36Swap liquidity providers and that is year paid yet liquidity pools in real swap fees. So that's 124 million. Then we have 1 million in month and farm cake emissions. So last week, V3 and V2 admitted just 124,000 cake, meaning 88% of liquidity pool income comes from organic trading fees, not token printing. That is getting rid of subsidy inside of their ecosystem. That in my opinion is quite beautiful. Real world incidents versus dependency. So

51:16you have a 9% B&B chain concentration. That is 2.3 billion out of well 2.31 9 billion of 2.388. So just minus these numbers right most of it total value lives on the B&B smart chain but the difference between those two numbers lives outside front end and social incident only on March 2021 GoDaddy DNS hijack and October 2025 Chinese x accounting fishing zero core automated market maker smart contract breached in 6 years two incidences

51:57in six years I guess is not the end. Not the end. One was back in 2021. One was a lot more recent. October 2025. Chinese exac account fishing. Very interesting. I didn't hear about that one. Infiniti's third-p partyy hook risk. Right. So, Hexen fixed two critical pre-launch bugs in Infiniti, but unverified thirdparty hook contracts can still put customer pools at risk. Adoption and volume scale. Well, let's break down a few numbers here via DeFi

52:31Llama. We have 2.388 billion in total value locked. TVL they would say. 825.7 million in 24hour spot volume. Remember that is volume. 30-day spot volume about 23 billion. 23 billion in volume. And 417 billion and trailing one-year volume. Again, they're all volume, but those are those are nice numbers, that's for sure. reading Dex volume like an analyst. What 417 billion in volume actually proves versus what you're most likely

53:07insinuating in your mind. Pancake Swap is undisputed number one liquidity hub on Binance Smart Chain and a top three decks across all of crypto. So don't sleep on that Pancake Swap because they're top three and there's a lot more Dexes out there than there used to be, right? Why fee tier mix matters more. So 100 million of volume in a 0.01 stable coin or RWA pool generates only $1,500 in cake burn where a 100 million of

53:41volume in your 0.25 or your like V2 volatility pool generates $57,500 worth of cake burn. Big difference. 38 times more. So let's follow the money. How much a pancake swaps 188 million in annual fees actually burns cake? Let's break it down. So you have your total user fees. This is for uh this is as of October 27, 2026, which is today I believe.

54:16Welcome in Chris Goss 333 my fellow lifers. Hit that exclamation point roll. So, we have total user fee, right? Liquidity, pool share, buyback and burn in the treasury. And you could look at the 24-h hour, 30-day, or one year, but I would go straight to these alltime numbers. Total user fees, 1.4 billion. I mean, $1.4 billion in fees. That's crazy. Liquidity pool share, $981 million. buy back and burn $311

54:50million worth of cake being burned and the treasury got $170 million. How every product feeds the burn furnace and we saw burns everywhere and like every single mechanism even if it's small there is some burn engine. So spot automated market makers and infinity pool right here's your math. We've gone over it several times so I'm not going to read it all out to you. It's your V2 and your V3 and what that looks like. Hey, there's CCP said, "I missed Melissa

55:25so much." Yes, I think that she might be busy working today. I'm glad Underground Crypto is here. Salute to you, CCP. Thanks for coming to the show. We needed We needed you in the building. I was just saying if we could get you and uh Plague Dogs going at the same time, y'all would be cracking me up. it'd be hard to focus. So, we're talking about cake here today. High margin burn engine, right? So, Cakepad Launchpad, 100% of participation

56:00fees are burned. I love that. Prediction market, 100% of the 3% pot fee is okay. Is burn is buyback and burns. So, the prediction market takes 3% out of the pot before it distributes it to the winners, right? And that 3% is 100% burned. I can see how that might get confusing. Perpetuals and they have a lottery. So, between perpetuals and the lottery, both of those 20% of perpetual profit and 20% of lottery pots are burned. You have

56:37burning going on in almost every function of Pancake Swap's ecosystem. Burning cake to the point where you have 37 months straight of deflationary action according to our research and cake has a good history of doing well. O if we hit you know you got to think of your your parameters. You got to think of what Pancake Swap is what it lives. It lives on Binance Smart Chain. It's very much directly related to just

57:10about anything going on on Binance Smart Chain. Let's be honest, right? Cuz if you're operating on Binance Smart Chain to do something, you're going to wind up at Pancake Swap eventually to swap some token or get something, right? Well, those are what I'm trying to say here is those are the the dynamics that you want to see unfold. We want to see for cake specifically, you want to see it continue to burn DeFi to do really well throughout this

57:40next bull market, which I believe we've already bottomed and technically are in a bull market, but like the very beginning of it technically. And so it doesn't really feel like a bull market yet. You just have these initial beginning moments of bullishness like we just had for several weeks before say about a week and a half, two weeks ago where it slowed down a little bit. So, if you were bullish on cake, in my opinion, never financial advice, you

58:05would smash that like button and subscribe to the channel and join our free Discord down in the chat. But also, you'd be looking for a lot of DeFi action on the Binance Smart Chain ecosystem to benefit the Cake token and really increase these burns and of course have people buying and holding cake. So the value capture pipeline, how it actually captures value, you have zero user friction. Traders swap into USDT or BNB, Ether, Soul without ever

58:34actually needing the Cake token. They don't need to hold it, but the value does reach Cake, which is awesome. That makes it foolproof, right? 41.1 million annual open market buyback. So they're buying tokens off the off the open market, which is also great. The protocol then collects fees in major tokens, buys cake in the open market. So, whatever you actually pay the fee for your swap in, cuz apparently they take multiple different tokens, then

59:04they'll take that and convert it into cake and that gets burned or a percentage of it gets burned. We've broke down the numbers many times. Liquid holder demand. Well, holders use liquid cake to enter Cakepad token sales and vote on governance with zero lock up cages. No more dilutive staking pools. So, zero staking inflation. Unlike Zama

59:33minting 39 million a year for stakers, Pancake Swap pays zero cake inflation to single-sided token lockers since their tokconomics 3.0 upgrade May 2025. Oh, you plague dogs and CCP going to get along great. onchain redemption balances today, right? So you have 5.1,000 cake or million, sorry, 5.1 million cake about you named it 10.7 that makes sense cuz cake's about $2, a little over $2. It's about 10 million in US dollars

1:00:21remaining inside the retired veake contract waiting for users to claim one to one. got about 13.3 million and permanently bricked is permanently bricked inside the legacy cake pool and continued as burned. So the weekly burn and emission breakdown, feel free to take that take a look at that for a minute. A lot of these numbers we've been over a lot of times, right? dashboard net. Here we have 135,980

1:01:02cake fewer or less bringing your weekly total burn and your weekly total mint. Look at it. You have more This is This is hard to find. We've done a lot of token autopsies. Very hard to find. There are more cake tokens being burned per week than are being minted. That is bullish. It's not by a crazy amount, but by about what uh about 200,000 cake or something like that. 100,000 cake.

1:01:37So 3 plus years of burning more than you have been minting. Very bullish supply, wallets, governance, and security. So let's talk about who controls the multisig and what risks still remain for cake, right? Because we said a lot of good things. We broke down a lot of the products and ecosystem. Let's talk about reconciling raw and live cake supply. So the raw Binance smart chain total supply is about 5.6 million, right?

1:02:09No, 5.6 billion. Wait, that can't be right. Oh, okay. Cuz the burn address. I was like there there can't be that many tokens. They're like their their max is supposed to be 400 or 400 million, right? Anyways, you have your raw Binance Smart Chain total supply of about 5.6 6 billion and then you have 5.3 billion has been burned because although for although in the V1 it's hardcoded the original

1:02:43contract that 40 cake per block on chain you know every block makes 40 cake 99% of it now is immediately burned. So you can see this is where you this is how much you would have of cake if that wasn't going on. And then you have about 13.3 million bricked in the legacy cake pools are basically just trapped there. So your subtotal here is about 330 million as of right now with a hard cap of 400

1:03:17million max tokens. So that provides raw supply. We have 900,000. We have like less than a million between where we're at and where we're going. So, this provided raw supply, burn address, brricked pool figures. They do not produce the quoted dashboard total. Confirm the match block or the missing adjustment before citing that subtraction as proof. Kind of technical stuff there. Don't worry about that.

1:03:48From hyperinflation to hard cap. So 2020 to 2022 syrup era fair launch but printed 40k cake per block to bootstrap liquidity. Then you roll into December 2023 we have ultra sound cake slashback emissions and instituted a 400 mill 450 million cake max cap and that's starting the 37month deflationary streak. Then you come all the way to 2025 tokconomic 3.0 O upgrade and of course the January 2026 cap cut where we made

1:04:25it 50 million less. It retired the old VE cake, cut real emissions, and cut the hard cap to 400 million cake. It's a little bit of repetitiveness here, right? The kitchen aka the main team and the Binance ecosystem route. Six years of relentless shipping incubated by the Binance ecosystem in September 2020 led by Chef Kids and core contributors shipped V2, V3, Infinite V4, Pancake Swap, order book per using Aster, Cake.Pads, Springboard 24/7 RWAS

1:05:05across 12 chains. They've built a lot of stuff. Uh unlike Doc's corporate teams like Zama or Uniswap Labs, Pancake Swap's core chefs remain synonymous, right? Making onchain multi-IG transparent and audits critical because we don't know who exactly they are. Governance and multi-IG administration controls. We have since veake is retired proposals like the January 26 400 million cap cut using one cake gets one vote on pancake

1:05:39swap voting. So that's how they've settled the governance since they got rid of ve cake. Multi-IG administer deflation. Well, Cake Tken owners owner technically it's still the Master Chef Ve and the weekly fee buyback and burn phantom mint sweep runs through Kitchen's burn administrative multi-IG. reliable for 269 plus weeks, but it is multi-IG executed and not an immutable per swap burn in the code, meaning

1:06:12somebody is hitting the button behind the scenes to burn the stuff. It's not automated by a smart contract. Smart contracts might gather it all up, but somebody's actually uh hitting the multi- signature to make sure it happens, right? It is required that that master chef actually hits the button to get it burned. Oh, top deck's right. So, these are the dexes that we have been over. So, we do have six years of audits in

1:06:48Infinity Hook Risk. So, Infinity V4 was audited by Hexans, Otterack, Zelic, and Seaffron, Ciphen. Two critical pre-launch issues found by Hexen and fixed before the launch. That's the whole point of having it audited. Then you have your core, V2, V3, Bridge, and Cake tokens were audited by PES Shield, Slow Mint, Bloxse Sec, Hashtit, and all these other ones. If you're for some reason into that, there it is. You can go look it all up.

1:07:18two security watch items. While custom infinity hooks, anyone can deploy in an infinity pool with a custom hook contract and unodudited third-party hook can drain that specific pool. Per dependency orderbook perpetuals rely on external aster infrastructure. So that could be a problem. We're just pointing out a couple potential risks, although we haven't really seen a lot of problems with it so far. So selling cake on the open market, right?

1:07:48All three exits are instant, right? So, what are your three exits? Well, you could sell cake on the open market. You could redeem retired VE Cake if you have any to redeem. And you can withdraw from the V2 V3 infinite pools. Selling cake on the market. That looks like 63 million in 24hour volume and onchain Binance Smart Chain Cake Wrapped B&B and Cake USDT pools. Redeeming retired VE Cake. Well, zero

1:08:17lock up timer and zero penalty. The remaining 5.1 million cake inved withdrawn one one to one at any second. I'm starting to think and wonder if I had anything in any of those uh pools cuz it's been a long time. I think I did participate in a couple of the pools a long time ago. I'm going to have to check that out. Withdrawing from V2 V3 infinity pools is instant onchain liquidity pool withdraw with no batch weight. subject to normal concentrated

1:08:48liquidity impermanent loss. So just normal function there. So 22.2 million treasury cash flow and a 3.6 multiple fee fee multiple delivered milestones versus next catalyst. So they've delivered on your tokconomics 3.0 know and your Pancake Swap Infinity pools at V4 and Cakepad Launchpads. What we're looking for next is migrating the 2.3 billion of V2V3 liquidity into

1:09:25Pancake Swaps V4. Expanding nonBinance Smart Chain volume on base, Ethereum, Salana, Robin Hood Chain, and Manad delivered milestones versus catalysts. We have 24/7 tokenized stocks and your order book pers, 37 months of net deflation. What to look for next is sustaining the 150,000 to 500,000 cake weekly net deflationary across the market cycles. We want it to stay deflationary. So we have our conditional scenarios

1:09:57here, right? Infinity. So, our bull case for Cake, as we kind of already lined out, is that all of their products, the Infinity 24/7 RWAS and Cakepad, their launchpad, accelerate weekly burns past the 4 to 6% a year, and the market rerates cake from 10.7x revenue towards UNI multiple towards Uni, the token, right? Multiples as supply shrinks towards 260 million. That's what you want to see. The more

1:10:30neutral case is that Pancake Swap stays the dominant B&B chain cash cow while multi-chain expansion grows modestly. And then of course the bare case is volume shifts into a 01% ultra low fee RWA, right? V4 type stuff, dropping weekly fee burns below the 152.6,000 cake weekly farm emissions. That would be bearish. All right. So we have the four layer decks buyback test and final scorec card.

1:11:03So how to audit any burn token in four steps. You got the volume mix is volume happening inside this 0.25% volatile pool which is your I believe V2 and V3 or your V3 sorry the V1 is completely retired. Uh phantom versus fee burn right. So strip out uncirculated block minting burns and count only fee funded buybacks. Then subtract real tokens emitted to farms and lotteryies from the fees and burned. Basically look at how much is

1:11:37coming out and then minus how much is being burned. Are you positive or negative? That's inflation or deflation. So here's our scorecard. Where it did the worst, I'd have to say, is security and decentralization, but it still got a 78, which is a good score. A 79 would have gave it a pass verdict. It was right there. Right. So, utility and adoption got 18 out of 20. Token value capture 16 out of 20.

1:12:13Tokconomics and supply 13 out of 15. Competitive mode got a 12 out of 15. Security and decentralization a 6 out of 10. Catalyst and execution a 7 out of 10. And risk and unanswered question a six out of 10. So utility and adoption. And there's a breakdown for every category here. That is something you'll have to look at on your own because of how repetitive it is. I don't want to just like give you all the information I just gave you.

1:12:45again. Cake landing a solid score next to Sky at 78. Beautiful. And what now? We're at 30. We are officially at 30 where Cake sits among DEX leaders. Right. UniS swap actually leads it by four points. multi-chain institutional moat and immutable governance or aerodyome and Jupiter. It actually scored higher than

1:13:25those. The takeaway is one of DeFi's cleanest turnarounds sitting one point below a passing score. And then of course we got two pages of sources if you are interested in looking at the the sources. This stuff will be inside of, you named it, our free Discord, but at some point it might not be free to look at all that stuff. You're going to need that basic membership. $3 a month. I know, I know I'm taxing hard. $3 a month.

1:13:58What's up? What's up, Mr. 3000? I haven't seen you in a while. Says, "Yes, I use cake a lot. Swapping B&B is easy and cheap." Nice. Love that. I've used it a lot over the years. I haven't used it a lot lately. So, Hyperliquid is building a regulated version of HIP 3 with Kraken's parent company. So, Hyperlid plans to make Payword, which is the parent company of Kraken,

1:14:31the first CFTC regulated deployer of HIP 3 Markets. Let's remember that Kraken actually has the proper what do you call it from the from the actual Federal Reserve here in America. They have a license, I believe, and they're one of the only people who have one. Uh, Coinbase might have one now, but it's pretty much just Coinbase and Kraken that actually have direct access to the Federal Reserve.

1:15:05That's it's a pretty big deal inside, of course, their industry. Subject to regulatory approval, Payword regulated derivative exchange, Bit Nominal, would deploy the market while Ninja Trader Clearing would carry customer accounts. The more interesting technical piece is an optional onchain allow list being tested for HIP 3 that would let one hyperlquid market remain open and permissionless while another deployer could run a market restricted to

1:15:38approved KYC users. So, Hyperlquid is effectively asking, can one decentralized trading infrastructure support both permissionless DeFi market and regulated institutional markets? That is much more interesting architecture than simply launching another centralized US derivative exchange. DeFi may not need to choose between completely permissionless and completely regulated. Hyperlid is experimenting with regulation at the

1:16:05market layer instead of the entire blockchain. The NASDAQ 100 is now available through blockchain native funds on Stellar, which is XLM if you don't know. Tokenization is moving from rappers around existing securities towards financial products designed from inception to exist on chain. We're not big on stocks here, so I didn't read every little bit of that. Keystone is destroying 18,835

1:16:36hard wallets after the authentication key was stolen. After all the Ledger supply chain news we followed, here's another ugly hardware story. Keystone, which I'm not familiar with, like I don't use them. I've never had them, says the attacker behind the website breach obtained the web off key used to prove Keystone devices are genuine. The company is therefore destroying 18,835

1:17:08devices already sitting in inventory, moving production to a new authentication key and pausing unshipped web orders. Yeah, but what happens to the devices that we have? I don't have any, but that somebody might have. Why destroy perfectly good devices? Because the old authentication key is burned into them during manufacturing and cannot be changed. If an attacker possesses the key, they could theoretically manufacture a counterfeit

1:17:34keystone wallet. Okay, I see the problem. Gotcha. So, self-custody eliminates one trusted intermediary and then forces you to think very carefully about the other intermediaries and their hardware supply chain. Well, that was a fun one for sure. Um, trying to remember what I wanted to go over tomorrow for the token autopsy. I had another coin that somebody

1:18:07recommended that I was going to go over. I think it might be layer zero. I think that might be what it is. You see layer zero everywhere, but what connection does layer zero actually have to its token? I need to write it down. All right. Well, that was a fun token autopsy. I learned a lot. What do you guys think? Anybody learn anything about cake today? Follow me over on X. If you're new here, smash that like button. Grab you a

1:18:48subscription. $3 a month. It's going to give you access to everything in our token autopsy. And of course, don't sleep on our visuals here. Little Twitter doom scroll. Let's see what we find here. Oh, we got updates for Iron Wake. We should go play that. Let's play some Iron Wake here. All right, it's refreshing. So, should be up to date. Let's play around. Let's play around. Kindra built this for us. We are

1:19:33going to be doing tournaments. We're going to be doing some stuff. Uh specifically, uh we're going to be sponsored on these through Kindra. I've been in in conversations with him. I need to check back on that. Let's go ahead and quick. Do we want a 3v3 or 5v5? I'm thinking we're going to 5v5, right? Why is it not letting me change it? Oh, because I already have it locked in. Anybody want to play some Iron Wake?

1:20:04We're going to be doing, I believe, some tournaments. I think there's been some upgrades and calibrations here. Oh, I don't think I changed. Dang. I Yeah, I did not change my uh my tank. So, my tank is slow. I don't like that. I don't know what happens sometimes. I get like this like I've highlighted the text on the page

1:20:54and I can't get rid of it. It's super annoying. I don't even think you guys can. Yeah, you guys can see it. The little box. What the heck is that thing? I need to get rid of that. I like trigger it somehow. I don't know how I do it. The only way I know to get rid of it. Yeah. What is going on? Yeah, there we go. And then we could supposed to be able to join right back in. All right, I got to try not to do that

1:21:28again. Definitely loving this game. Kindra Dev built this just for our community. Super solid. They keep updating it. He says a lot of people like the game, so I think it was really good for them to make this game. Is it going to be integrated with Kendra in general or is it going to kind of live as its own game? I'm not too sure. We could play this as a community though. I got another one. Let's get

1:22:02some health. Oh, this is not There's no um point to capture. Ah, I did it again. It's like anywhere. Anytime I go near the numbers, it messes up. What is going on? I can't move. Yo, what? Every time. Yeah. What the heck? I don't know what that's about. I don't know if that has if they can fix that or if that's just me and my computer. I'll have to screenshot that,

1:22:42take a little video recording and send that. I don't know if that happens to other people or just me. Grab some health. Back up teammates here. There we go. Oh, they trying to get me. Yeah, let's leave the squad because I want to switch. Oh, we have new. That's right. We have new uh I usually play as a the skirmisher.

1:23:35We have the longbowow. I'm going to try out the longbow. I've never played that. All right, so we got 3v3. Let's throw it to 3v5. Take deathmatch off. Put hard point. And let's let's get in there. I don't I don't want to play that. Let's not worried about whatever. All right. It kept all Oh, dang it. Leave. There we go.

1:24:14Who's still hanging out with me? We're going to be doing a tournament. with all of this here. Feels like it probably is rather hard to hit them from that far away, but it definitely moves me outside their range. Oh, okay. So you can hold space to like have your like rail gun. That's pretty cool. Okay. Yo, that's super dope. Look at play Kindred go. This is solid.

1:25:18more of like a support vehicle. And that shot goes off way faster. But we are losing, huh? I'm going to have to try out all these new tanks. What? How did I not hit him? I swear I went right through him. Oh, I forgot I switched it to hardpoint. Should have been trying to capture some of these points. That's why we were losing. All right, we got him.

1:26:52We are technically winning here. Dang, they slipped it. All right, this is a lot of fun. I'm going to have to experiment with this a lot more. We do got some upgrades to roll into the armory. Let's check those out. And we have all new stuff. 4% shorter reload times, 4% cannon range per tier, 6%. All right. Oh, I can afford these. Let's get all of these on. 6% shell speed. Yeah, let's get that

1:27:31going. And that spent up everything, but now we got all that added on. Then you have the sunder and the forge, which I haven't tried those out. So, shout out to play Kendra for obviously continuing to grow and build this product, this game. CCP says, "I voted early. Did you guys vote?" I didn't vote early. I guess I'm going to vote on the regular day. But I think that's all I have for you

1:27:58guys tonight. It was a lot of fun. Thanks for being here. Shout out to all my undergrounders. You know, I will be back 8:30 p.m. tomorrow and we will do layer zero, which should be a great deep dive. A wealth of things to go over with layer zero. If you know what a layer zero is, then you'd understand what that project is all about. See you. Stay underground. Stay crypto. And I'll catch you in the next episode

1:28:33tomorrow 8:30 p.m. New York time. Underground crypto out.