Liquidity Mining versus Staking

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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

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