So, CAKE is (I believe) one of the fundamentally best investments in the crypto space right now, in spite of it having an infinite token supply which normally is a massive no-no.
DeFi platforms have a strong correlation between their tokens and their TVL (or total value locked).
You can look up the exact stat yourself, but while the vast majority of DeFi platforms have tokens that are correlated to this or even slightly higher in value than they should be, CAKE is largely undervalued compared to its TVL of more than $4B.
$4B is no joke and it puts Pancakeswap in the top 3 or 4 largest DeFi protocols, and by far the largest on BSC - with Binance Smart Chain growing rapidly right now as a result of the bullshit ETH fees.
Coming back to the infinite supply of CAKE, the way this is managed by PCS chefs is that there are burn mechanisms in almost every section of PCS. The aim is to increase burn rates so that they outweigh inflation and CAKE actually becomes deflationary.
That brings me to a significant factor most aren’t aware of at this point in time unless staking on PCS, and even then maybe not.
3 days ago PCS concluded a vote of all CAKEholders regarding cutting the rewards given to LPs dramatically. It was voted in and the total amount of CAKE created each dayhas just dropped significantly as a result of this.
For example, I was getting 350% @ a multiplier of 0.5X, and 3 days ago that was cut to 0.1X, with the same happening to about 20 or 30 other farmpools.
Reductions in supply combined with maintenance of demand equals higher prices normally, and I believe that the overproduction of CAKE (which has now been partially corrected) was the major factor in PCS having such low token price in relation to its TVL.
Take this with a grain of salt, or act on it, or whatever. Maybe helpful to someone, maybe it’s not, but I hope it is useful for someone.