What are Token Rewards (CAKE, AERO)?

More Than Just Fees

Trading fees are the main way you earn. But some pools offer a bonus: token rewards.

Think of it like a store loyalty program. You already get value from shopping. The loyalty points are extra. Token rewards work the same way.

What Are These Tokens?

CAKE is PancakeSwap's token. PancakeSwap gives CAKE to people who provide liquidity on their platform. It is their way of attracting deposits.

AERO is Aerodrome's token. Aerodrome is the biggest DEX on Base. They give AERO to liquidity providers to grow their pools.

Both tokens have real value. You can sell them, hold them, or reinvest them.

How Each Protocol Works

PancakeSwap (CAKE rewards): Your position must be staked to earn CAKE. Staking means locking your position into PancakeSwap's reward contract. Snuggle handles this for you during deposit. You do not need to do anything extra.

Aerodrome (AERO rewards): AERO rewards accrue automatically. No staking needed. If you have liquidity in an Aerodrome pool, you earn AERO.

Uniswap V3: No token rewards. You earn trading fees only. Uniswap pools can still be very profitable because of high trading volume.

Claiming Your Rewards

When you click Harvest on your position page, you collect everything at once. Trading fees and token rewards arrive together.

Gas on Base is under $0.01. Claim as often as you like.

Which Pools Have Rewards?

Not every pool on PancakeSwap or Aerodrome earns rewards. Each protocol decides which pools to incentivize. Snuggle shows you the reward status for each pool on the deposit page.

Rewards can change over time. A pool earning CAKE today might earn less next month. Trading fees are more stable. Consider both when choosing a pool.

What You Learned

• Some pools earn extra token rewards (CAKE or AERO) on top of trading fees
• PancakeSwap pools earn CAKE. Aerodrome pools earn AERO.
• Rewards are claimed alongside your trading fees when you harvest