Liquidity Mining versus Staking - Revision history

SaschaGLM: Added DFX for staking; improved formatting

2022-08-31T19:59:28Z

Added DFX for staking; improved formatting

Misterpiggie49: Added more content, overall improvement of the page's spelling, grammar, wording, etc.

2022-01-28T17:40:04Z

Added more content, overall improvement of the page's spelling, grammar, wording, etc.

Misterpiggie49: Misterpiggie49 moved page Liquidity Mining or Staking - using DeFiChain or Cake to Liquidity Mining versus Staking: The title included information that is not appropriate for a title and better fit in the page.

2022-01-28T01:45:10Z

Misterpiggie49 moved page Liquidity Mining or Staking - using DeFiChain or Cake to Liquidity Mining versus Staking: The title included information that is not appropriate for a title and better fit in the page.

Misterpiggie49: Organized page better

2021-12-26T16:49:50Z

Organized page better

DrSonderbar: Paar Rechtschreibfehler und Formulierungen ausgebessert

2021-05-04T20:21:27Z

Paar Rechtschreibfehler und Formulierungen ausgebessert

Rainer at 15:05, 4 May 2021

2021-05-04T15:05:14Z

Rainer: Created page with "This small guide should help to decide on the usage of Liquidity Mining or Staking. I addition, it also indicates the pros and cons wether you are using the DeFiChain direct o..."

2021-05-04T15:04:45Z

Created page with "This small guide should help to decide on the usage of Liquidity Mining or Staking. I addition, it also indicates the pros and cons wether you are using the DeFiChain direct o..."

New page

This small guide should help to decide on the usage of Liquidity Mining or Staking. I addition, it also indicates the pros and cons wether you are using the DeFiChain direct or as a service provider Cake.

== Liquidity Mining (LM) ==

- Risk diversified, as investment and rewards are in DFI and BTC.

- Possibly impermanent loss. However, this is negligible if you use LM as cash flow strategy

- Rewards are described as APR (without compound interest)

== Staking ==
- Pure DFI risk

- Rewards are described as APY (with compound interest)

== Cake or DeFiChain? ==
'''Cake:'''

- Easier to use

- LM is possible

- Staking is possible (starting with less than 20,000 DFI)

- 15% less income

- Platform risk

- KYC necessary

- Withdrawal partially delayed

'''DefiChain Wallet/Masternode'''

- LM is possible

- Staking (at least 20,000 DFI)

- No deduction on income

- No KYC & your keys - your coins

- Smart contract risk

- More difficult to operate

- Rapid withdrawal

@@ Line 7: / Line 7: @@
 Advantages
-- The risk is more diversified, as investment and rewards are in DFI or DUSD and another coin or token. However, if one side of the pool goes to 0, it is possible that you will lose all of your capital.
+* The risk is more diversified, as investment and rewards are in DFI or DUSD and another coin or token. However, if one side of the pool goes to 0, it is possible that you will lose all of your capital.
 Disadvantages
-- Possible impermanent loss. However, this is negligible if you use liquidity mining as a cash flow strategy, and rewards are designed to prevent loss of capital from impermanent loss.
+* Possible impermanent loss. However, this is negligible if you use liquidity mining as a cash flow strategy, and rewards are designed to prevent loss of capital from impermanent loss.
 == Staking (Solo) ==
@@ Line 18: / Line 18: @@
 Advantages
-- DFI price is the only risk
+* DFI price is the only risk
+* It is possible to freeze or lock masternodes, in order to receive 50% more rewards (5 year) or double rewards (10 years)
 Disadvantages
-- 20,000 DFI is required to make a masternode
+* 20,000 DFI is required to make a masternode
+* Rewards are not consistent, some days the masternode may earn multiple block rewards, others none at all
 == Staking (Indirect vs. Direct) ==
 Pros
-- User-friendly, designed for an investor with little experience
+* User-friendly, designed for an investor with little experience
+* There is no minimum stake amount
-- There is no minimum stake amount
+* May have additional VIP benefits
+* Run mainly by Dr. Julian Hosp and U-Zyn Chua, the founders of DeFiChain
 Cons
-- 15% fee on rewards (reduction possible through freezer lockup)
+* 15% fee on rewards (reduction possible through freezer lockup)
-- Platform and centralization risk
+==== '''DFX.swiss''' ====
-- KYC required
+additional Pro:
-- Longer withdrawal due to processing by Cake and transaction time on blockchain
+* Participate in CFP/DFIP-Voting even with less than 20.000 DFI in staking
 Pros
-- Rapid withdrawal (only transaction time in the blockchain is necessary.
+* Rapid withdrawal (only transaction time in the blockchain is necessary.
+* No fees on income
-- No fees on income
+* No KYC required
+* Non-custodial, investors hold their own keys
 Cons
-- 20,000 DFI minimum stake amount
+* 20,000 DFI minimum stake amount
+* Smart contract risk
-- Smart contract risk
+* Less user-friendly

@@ Line 1: / Line 1: @@
-This small guide should help you decide on the usage of Liquidity Mining or Staking. In addition, it also indicates the pros and cons whether you should directly use the DeFiChain or use a service provider like Cake.
+This small guide should help you decide whether to use Liquidity Mining or Staking, if you are debating the two. In addition, it also indicates the advantages and disadvantages whether you should directly use the DeFiChain or use a service provider like CakeDeFi (commonly referred to as Cake).
 == Liquidity Mining (LM) ==
-- Rewards are displayed as APR (without compound interest)
+- Rewards are displayed as APR (before compounding)
-Pros
+Advantages
-- The risk is diversified, as investment and rewards are in DFI or DUSD and another coin.
+- The risk is more diversified, as investment and rewards are in DFI or DUSD and another coin or token. However, if one side of the pool goes to 0, it is possible that you will lose all of your capital.
-Cons
+Disadvantages
-- Possible impermanent loss. However, this is negligible if you use LM as a cash flow strategy
+- Possible impermanent loss. However, this is negligible if you use liquidity mining as a cash flow strategy, and rewards are designed to prevent loss of capital from impermanent loss.
-== Staking ==
+== Staking (Solo) ==
-- Rewards are described as APY (with compound interest)
+- Rewards are described as APY (after compounding)
-Pros
+Advantages
 - DFI price is the only risk
-== Cake or DeFiChain? ==
 '''Cake:'''
 Pros
-- Easier to use
+- User-friendly, designed for an investor with little experience
-- LM and Staking are possible (any amount)
+- May have additional VIP benefits
-- Possibility to freeze to gain additional rewards
+- Run mainly by Dr. Julian Hosp and U-Zyn Chua, the founders of DeFiChain
 Cons
-- 15% fee (reduction possible through freezer lockup)
+- 15% fee on rewards (reduction possible through freezer lockup)
-- Platform risk
+- Platform and centralization risk
-- KYC necessary
+- KYC required
-- Withdrawal partially delayed
+- Longer withdrawal due to processing by Cake and transaction time on blockchain
-'''DefiChain Wallet/Masternode'''
+'''DefiChain Wallet (Solo Staking with Masternode)'''
 Pros
-- LM is possible (any amount)
+- Rapid withdrawal (only transaction time in the blockchain is necessary.
-- Rapid withdrawal
+- No fees on income
-- No deduction on income
+- No KYC required
-- No KYC and your keys - your coins
+- Non-custodial, investors hold their own keys
 Cons
-- Staking (must be 20,000 DFI or more)
+- 20,000 DFI minimum stake amount
 - Smart contract risk
-- More difficult to operate
+- Less user-friendly

← Older revision	Revision as of 01:45, 28 January 2022
(No difference)

@@ Line 1: / Line 1: @@
-This small guide should help to decide on the usage of Liquidity Mining or Staking. I addition, it also indicates the pros and cons wether you are using the DeFiChain direct or as a service provider Cake.
+This small guide should help to decide on the usage of Liquidity Mining or Staking. In addition, it also indicates the pros and cons whether you should directly use the DeFiChain or use a service provider like Cake.
 == Liquidity Mining (LM) ==
-- Risk diversified, as investment and rewards are in DFI and BTC.
+- The Risk is diversified, as investment and rewards are in DFI and BTC.
-- Possibly impermanent loss. However, this is negligible if you use LM as cash flow strategy
+- Possibly impermanent loss. However, this is negligible if you use LM as a cash flow strategy
 - Rewards are described as APR (without compound interest)
@@ Line 22: / Line 22: @@
 - Staking is possible (starting with less than 20,000 DFI)
-- 15% less income
+- 15% less income / fee (reduction possible through freezer lockup)
 - Platform risk