evo

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Apr 2017
Understanding the PancakeSwap Multiplier

One of the more confusing parts about PancakeSwap is understanding the multiplier, and how it affects APY for a given liquidity pool.

When you want to stake your LP tokens in PancakeSwap to earn CAKE, different multipliers are shown for each farm. It's confusing because it gives the appearance that your rate of return will be multiplied, but that's not how it works.

The multiplier relates to the amount of CAKE allocated to each farm, and the APR takes into account both the multiplier and the amount of LP tokens being staked in the farm.

The more people staking their LP tokens in a particular farm will show a lower APR and a higher multiplier (i.e. CAKE-BNB farm).

For example, if you have 500,000 CAKE tokens allocated to a farm, you would receive the most tokens with CAKE-BNB because the multiplier is 40x.
 

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