Cake Monster — Protocol Insight
This article will give you a deeper insight into the Cake Monster protocol and how its underlying features and functions will work in detail. Have fun digging!
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 1M tokens (deflation rate per cycle 99.9%). At the same time, it builds up a protocol backing vault (called “Gravity Vault”) containing $CAKE, which acts as price anchor and makes itself available as a sophisticated reward system for holders of the native $MONSTA token.
A part of the protocol taxes (2.5% per transaction) is used to fill up the so called “Temporary Vault” with $MONSTA tokens. This vault acts as a proxy between the Blockchain and the $CAKE “Gravity Vault” and will be used to fulfill two tasks. These tasks are: Add a portion (10%) $MONSTA as locked liquidity to the LP, swap $MONSTA for $CAKE and add $CAKE to the Gravity Vault.
Another part of the protocol taxes (2.5% per transaction) is used to burn $MONSTA forever.
A protocol cycle is controlled by two distinct and rewarding functions that can be called by anyone, plus an additional function that promises recurring rewards for $MONSTA holders.
- Vault Management (Kitchen)
- Automatic Cash Out
- Base Reward (Crumbs)
If the temporary vault ($MONSTA)> .01% of total supply the VAULT MANAGEMENT function becomes available and can be called by anyone. This function triggers the following chain of events (or steps), executed by the smart contract:
- 1. 10% of the $MONSTA balance is added to the PCS locked liquidity pool (50% converted to BNB, 50% $MONSTA)
- 2. 90% of $MONSTA from the temporary vault is swapped for $CAKE, which is then added to the $CAKE Gravity Vault ($MONSTA contract)
- The fastest vault manager receives a minted reward of 1% of the total current temporary vault ($MONSTA)
- Vault manager queue size = 10 — To prevent spamming on this function, each managing wallet address is added to a list of vault managers. Vault managers on this list will be blocked from calling the VAULT MANAGEMENT until they move out of that list because of following vault managers
- If the total $MONSTA supply has decreased 1% since the previous snapshot, a new snapshot is issued for the base reward. The snapshot captures data from all bearer wallets to determine the claimable base reward amount per wallet
Each time the total supply decreased 1%, $MONSTA holders become eligible to claim a base reward in the form of $CAKE from the Gravity Vault, equivalent to their current holdings versus total supply:
- The total base reward is 25% of the Gravity Vault ($CAKE) aggregated since the previous snapshot
- A holder should claim the rewards before the next snapshot takes place (after an additional 1% supply is burned)
- Unclaimed rewards flow back into the Gravity Vault ($CAKE)
Automatic Cash Out
*new changes were implemented on August 25 2021 after a community vote. This section is edited to show the current rules of the function
If no >= 5% action (buy/transfer/sell) is recorded from a bearer wallet for 50 consecutive days, the AUTOMATIC CASH OUT function can be triggered by anyone. This measure is essential to the hyper-deflationary logic of the protocol, and without it the targeted end supply would never be reached.
- Swaps 70% of the holders $MONSTA tokens for BNB, which will be returned to the holder.
- Transfers 2.5% of the holders $MONSTA tokens as reward to the caller of this function.
- Swaps 20% of the holders $MONSTA token for CAKE and adds it to the Gravity Vault
- Leave BNB worth 10% of an inactive holders MONSTA in the LP (7.5% Liquidity addition, 2.5% to account for the caller reward).
- 100% of swapped $MONSTA token will be burned out of the LP.
- If the holders $MONSTA token value is too low to sell, the function will just burn the tokens (100%) out of the bearer wallet instead of selling it.
- Liquidity provided to the BNB/MONSTA liquidity pool on Pancake Swapv2 is whitelisted for this function and therefore cannot be disbursed.
The end of the protocol cycle is controlled by three different functions that can be called by anyone. It basically rewards all holders with their share of the permanent vault and relaunches the protocol.
- Claim Gravity Vault
If supply <= end supply (1,000,000) the CLAIM GRAVITY VAULT function becomes available to anyone and all trading will be halted.
- The collected liquidity from the LP will be removed and temporarily stored in the smart contract
- The FINISH function becomes also available when two years have passed since protocol launch/relaunch
- The FINISH function becomes also available when there is no vault management activity for 124 days since protocol launch/relaunch
Claiming Gravity Vault
For 35 days anyone can claim their share of $CAKE, equivalent to their $MONSTA holdings versus total supply at the time of trading halt.
- Upon claiming all $MONSTA tokens in the bearer wallet will be swapped for the $CAKE from the Gravity Vault and will be burned hereafter
- Unclaimed $CAKE stays in the contract and will be used to support the upcoming protocol cycle
After 35 days claiming period the RELAUNCH function can be called by anyone to kickstart a new cycle.
- Supply will be minted back to the initial of 10,000,000,000 (10B)
- Adds liquidity previously stored in the contract back to the LP to relaunch the protocol
- The holders of the previous cycle receive the shares back with which they claimed their $CAKE
All of these functions can be managed interactively by the Cake Monster Dashboard! Here a little sneak peak for you!
Our next articles will lay out the Cake Monster Litepaper, providing some extra graphs and other visualizations for a better understanding of the whole as well as our Roadmap.
About Cake Monster
Dive into the furry world of a super deflationary multi-feature and dividend yield token on BSC with cute memes, hairy NFTs, delicious community rewards and much much more sweet ingredients, RAWR!
Cake Monster ($MONSTA) offers a multitude of great features aimed at building a flexible and multifaceted dividend yield and reward system for participants without compromising the sustainability or security of the ecosystem and combines this with smart design, creativity, and organic growth.
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