Difference between revisions of "Liquidity Mining versus Staking"
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DrSonderbar (talk | contribs) (Paar Rechtschreibfehler und Formulierungen ausgebessert) |
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| − | This small guide should help to decide on the usage of Liquidity Mining or Staking. | + | 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) == | == 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) | - Rewards are described as APR (without compound interest) | ||
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- Staking is possible (starting with less than 20,000 DFI) | - Staking is possible (starting with less than 20,000 DFI) | ||
| − | - 15% less income | + | - 15% less income / fee (reduction possible through freezer lockup) |
- Platform risk | - Platform risk | ||
Revision as of 20:21, 4 May 2021
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)
- 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 a 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 / fee (reduction possible through freezer lockup)
- 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
