Difference between revisions of "Liquidity Mining versus Staking"
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Revision as of 15:05, 4 May 2021
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
