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Predictions Market added to Pancake Swap

PancakeSwap adds a Prediction Market for BNB price using Chainlink

PancakeSwap just added a revolutionary new feature to their AMM.  You can now bet BNB on whether BNB will go up or go down during a 5 minute period.  As I type this they are on round 238.  I have been watching it since around round 200.  I think it went live today.  PancakeSwap is going to take 3% of the money bet and use it to burn Cake.  They are planning to collect and then burn once a week.  This is another ingenious way to reduce the volume of Cake and create more scarcity for the coin.

PancakeSwap used to be a copy of Uniswap but it is now so much more.  You can stake your LP tokens.  You can participate in a lottery.  And now you can bet on whether or not BNB will go up or down in a set 5 minute period.

As this catches on, they are going to make so much money or rather burn so much cake.  I think they are earning about $1000 every 5 minutes.

With this new huge reduction in Cake and the great staking rates, Cake is my favorite coin right now.  I am staking BNB/Cake right now on PanckakeBunny.  I am in the new V2 pool.  When I entered the pool it didn't have the 3 day lock.  Now it does so i need to stick it out for another 2 days or pay .5 percent.

The world of crypto is pretty crazy.  I think the other company that is going to benefit is Chainlink.  Pancake is using a Chainlink oracle which means that everyone who copies Pancake Swap will probably also use a Chainlink Oracle.  AMMs can turn into gambling hubs.  It will be interesting to see how it pans out.

Its been about a month since I wrote the beginning of the article and I haven't seen anyone copy the predictions market yet.  It must be really difficult to implement.  PancakeSwap took it down for most of the last month.  It is back up now and it looks like its getting about 50 BNB per round.  As a fan of Cake, I like anything that results in a burn.  The more initial farm offerings, lotteries, and gambling they have, the more tokens they will burn.

On 6/6/2021 There are about 177 million Cake coins and I am excited to see how many they will burn tomorrow.  They seem to be burning over 5 million each week.  If they continue yielding 500k per day and burning 5 million per week there will become less and less coins.  If the market cap goes up and the volume of coins go down, it should cause the coin to go up.  Right?

As there are less coins, the yield may be able to increase.  If the yields increase, the coins will become more valuable and so on.

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