Difference between revisions of "Liquidity Mining versus Staking"
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| − | This small guide should help | + | 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. |
== Liquidity Mining (LM) == | == Liquidity Mining (LM) == | ||
| − | - | + | - Rewards are displayed as APR (without compound interest) |
| − | + | Pros | |
| − | - | + | - The risk is diversified, as investment and rewards are in DFI or DUSD and another coin. |
| + | |||
| + | Cons | ||
| + | |||
| + | - Possible impermanent loss. However, this is negligible if you use LM as a cash flow strategy | ||
== Staking == | == Staking == | ||
| − | - | + | - Rewards are described as APY (with compound interest) |
| − | - | + | Pros |
| + | |||
| + | - DFI price is the only risk | ||
== Cake or DeFiChain? == | == Cake or DeFiChain? == | ||
'''Cake:''' | '''Cake:''' | ||
| + | |||
| + | Pros | ||
- Easier to use | - Easier to use | ||
| − | - LM | + | - LM and Staking are possible (any amount) |
| − | - | + | - Possibility to freeze to gain additional rewards |
| − | - 15% | + | Cons |
| + | |||
| + | - 15% fee (reduction possible through freezer lockup) | ||
- Platform risk | - Platform risk | ||
| Line 32: | Line 42: | ||
'''DefiChain Wallet/Masternode''' | '''DefiChain Wallet/Masternode''' | ||
| − | + | Pros | |
| − | - | + | - LM is possible (any amount) |
| + | |||
| + | - Rapid withdrawal | ||
- No deduction on income | - No deduction on income | ||
| − | - No KYC | + | - No KYC and your keys - your coins |
| + | |||
| + | Cons | ||
| + | |||
| + | - Staking (must be 20,000 DFI or more) | ||
- Smart contract risk | - Smart contract risk | ||
- More difficult to operate | - More difficult to operate | ||
| − | |||
| − | |||
Revision as of 16:49, 26 December 2021
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.
Liquidity Mining (LM)
- Rewards are displayed as APR (without compound interest)
Pros
- The risk is diversified, as investment and rewards are in DFI or DUSD and another coin.
Cons
- Possible impermanent loss. However, this is negligible if you use LM as a cash flow strategy
Staking
- Rewards are described as APY (with compound interest)
Pros
- DFI price is the only risk
Cake or DeFiChain?
Cake:
Pros
- Easier to use
- LM and Staking are possible (any amount)
- Possibility to freeze to gain additional rewards
Cons
- 15% fee (reduction possible through freezer lockup)
- Platform risk
- KYC necessary
- Withdrawal partially delayed
DefiChain Wallet/Masternode
Pros
- LM is possible (any amount)
- Rapid withdrawal
- No deduction on income
- No KYC and your keys - your coins
Cons
- Staking (must be 20,000 DFI or more)
- Smart contract risk
- More difficult to operate
