https://defichain-wiki.com/api.php?action=feedcontributions&user=Rainer&feedformat=atomDeFiChain-Wiki - User contributions [en]2024-03-29T08:13:50ZUser contributionsMediaWiki 1.35.0https://defichain-wiki.com/index.php?title=Liquidity_Mining_versus_Staking&diff=1546Liquidity Mining versus Staking2021-05-04T15:05:14Z<p>Rainer: </p>
<hr />
<div>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.<br />
<br />
== Liquidity Mining (LM) ==<br />
<br />
- Risk diversified, as investment and rewards are in DFI and BTC.<br />
<br />
- Possibly impermanent loss. However, this is negligible if you use LM as cash flow strategy<br />
<br />
- Rewards are described as APR (without compound interest)<br />
<br />
== Staking ==<br />
- Pure DFI risk<br />
<br />
- Rewards are described as APY (with compound interest)<br />
== Cake or DeFiChain? ==<br />
'''Cake:'''<br />
<br />
- Easier to use<br />
<br />
- LM is possible<br />
<br />
- Staking is possible (starting with less than 20,000 DFI)<br />
<br />
- 15% less income <br />
<br />
- Platform risk<br />
<br />
- KYC necessary<br />
<br />
- Withdrawal partially delayed<br />
<br />
'''DefiChain Wallet/Masternode'''<br />
<br />
- LM is possible<br />
<br />
- Staking (at least 20,000 DFI)<br />
<br />
- No deduction on income<br />
<br />
- No KYC & your keys - your coins<br />
<br />
- Smart contract risk<br />
<br />
- More difficult to operate<br />
<br />
- Rapid withdrawal</div>Rainerhttps://defichain-wiki.com/index.php?title=Liquidity_Mining_versus_Staking&diff=1545Liquidity Mining versus Staking2021-05-04T15:04:45Z<p>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..."</p>
<hr />
<div>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.<br />
<br />
== Liquidity Mining (LM) ==<br />
<br />
- Risk diversified, as investment and rewards are in DFI and BTC.<br />
<br />
- Possibly impermanent loss. However, this is negligible if you use LM as cash flow strategy<br />
<br />
- Rewards are described as APR (without compound interest)<br />
<br />
== Staking ==<br />
- Pure DFI risk<br />
<br />
- Rewards are described as APY (with compound interest)<br />
<br />
<br />
== Cake or DeFiChain? ==<br />
'''Cake:'''<br />
<br />
- Easier to use<br />
<br />
- LM is possible<br />
<br />
- Staking is possible (starting with less than 20,000 DFI)<br />
<br />
- 15% less income <br />
<br />
- Platform risk<br />
<br />
- KYC necessary<br />
<br />
- Withdrawal partially delayed<br />
<br />
'''DefiChain Wallet/Masternode'''<br />
<br />
- LM is possible<br />
<br />
- Staking (at least 20,000 DFI)<br />
<br />
- No deduction on income<br />
<br />
- No KYC & your keys - your coins<br />
<br />
- Smart contract risk<br />
<br />
- More difficult to operate<br />
<br />
- Rapid withdrawal</div>Rainerhttps://defichain-wiki.com/index.php?title=Fundamentals&diff=1544Fundamentals2021-05-04T15:01:00Z<p>Rainer: </p>
<hr />
<div>* [[White paper]]<br />
<br />
* [[Earnings Liquidity-Mining]]<br />
* [[Blockrewards]]<br />
<br />
* [[Liquidity Mining or Staking - using DeFiChain or Cake]]<br />
<br />
* [[Impermanent Loss]]<br />
* [[FAQ]]</div>Rainerhttps://defichain-wiki.com/index.php?title=Impermanent_Loss&diff=85Impermanent Loss2020-12-17T09:19:56Z<p>Rainer: </p>
<hr />
<div>Assets of a Liquidity pool can have strong price fluctuations. Usually, this is solved by arbitrators, which lead to a balanced pool. But, pulling out your assets from the pool at a time when the pool is not balanced can lead to permanent losses. In contrast, when the pool is unbalanced but you do not pull out your assets it's just an impermanent loss.<br />
<br />
''Rule of thumb: The longer you wait, the lesser is the risk of a loss.''<br />
<br />
<br />
'''A detailed explanation of impermanent loss can be found here:<br />
<br />
'''https://julianhosp.com/impermanent-loss-other-liquidity-mining-risks-explained/<br />
<br />
<br />
'''A calculator to calculate the impermanent loss is here:'''<br />
<br />
https://chitty27.pythonanywhere.com/<br />
<br />
Example: You have a BTC-DFI Liquidity pool (Asset 1: BTC; Asset 2: DFI). The price of DFI doubles, while BTC is not changing of all. You should key in into the calculator:<br />
<br />
<br />
Asset 1: 0<br />
<br />
Asset 2: 100%<br />
<br />
<br />
<br />
After hitting Calculate it will compute an impermanent loss of 5.72%.</div>Rainerhttps://defichain-wiki.com/index.php?title=Impermanent_Loss&diff=84Impermanent Loss2020-12-17T09:06:27Z<p>Rainer: /* Impermanent Loss */</p>
<hr />
<div>Assets of a Liquidity pool can have strong price fluctuations. Usually, this is solved by arbitrators, which lead to a balanced pool. But, removing your assets from the pool at a time when the pool is not balanced can lead to permanent losses. In contrast, when the pool is unbalanced but you do not remove your assets it's just an impermanent loss.<br />
<br />
''Rule of thumb: The longer you wait, the lesser is the risk of a loss.''<br />
<br />
<br />
'''A detailed explanation of impermanent loss can be found here:<br />
<br />
'''https://julianhosp.com/impermanent-loss-other-liquidity-mining-risks-explained/<br />
<br />
<br />
'''A calculator to calculate the impermanent loss is here:'''<br />
<br />
https://chitty27.pythonanywhere.com/<br />
<br />
Example: You have a BTC-DFI Liquidity pool (Asset 1: BTC; Asset 2: DFI). The price of DFI doubles, while BTC is not changing of all. You should key in into the calculator:<br />
<br />
<br />
Asset 1: 0<br />
<br />
Asset 2: 100%<br />
<br />
<br />
<br />
After hitting Calculate it will compute an impermanent loss of 5.72%.</div>Rainerhttps://defichain-wiki.com/index.php?title=Impermanent_Loss&diff=83Impermanent Loss2020-12-17T09:05:44Z<p>Rainer: Created page with "== Impermanent Loss == Assets of a Liquidity pool can have strong price fluctuations. Usually, this is solved by arbitrators, which lead to a balanced pool. But, removing you..."</p>
<hr />
<div>== Impermanent Loss ==<br />
<br />
Assets of a Liquidity pool can have strong price fluctuations. Usually, this is solved by arbitrators, which lead to a balanced pool. But, removing your assets from the pool at a time when the pool is not balanced can lead to permanent losses. In contrast, when the pool is unbalanced but you do not remove your assets it's just an impermanent loss.<br />
<br />
''Rule of thumb: The longer you wait, the lesser is the risk of a loss.''<br />
<br />
<br />
'''A detailed explanation of impermanent loss can be found here:<br />
<br />
'''https://julianhosp.com/impermanent-loss-other-liquidity-mining-risks-explained/<br />
<br />
<br />
'''A calculator to calculate the impermanent loss is here:'''<br />
<br />
https://chitty27.pythonanywhere.com/<br />
<br />
Example: You have a BTC-DFI Liquidity pool (Asset 1: BTC; Asset 2: DFI). The price of DFI doubles, while BTC is not changing of all. You should key in into the calculator:<br />
<br />
<br />
Asset 1: 0<br />
<br />
Asset 2: 100%<br />
<br />
<br />
<br />
After hitting Calculate it will compute an impermanent loss of 5.72%.</div>Rainerhttps://defichain-wiki.com/index.php?title=Main_Page&diff=82Main Page2020-12-17T08:50:21Z<p>Rainer: </p>
<hr />
<div>'''Welcome to the DeFiChain Wiki'''<br />
<br />
Links to DeFiChain Content of the official DeFiChain Fondation:<br />
<br />
https://defichain.com/<br />
<br />
https://github.com/DeFiCh<br />
<br />
<br />
<br />
'''Links to independent portals with DeFiChain content. '''<br />
https://www.cakedefi-review.com/<br />
<br />
https://defichain-wiki.com/<br />
<br />
<br />
''' General Defi Topics '''<br />
<br />
[[Impermanent Loss]]</div>Rainerhttps://defichain-wiki.com/index.php?title=Main_Page&diff=81Main Page2020-12-17T08:50:11Z<p>Rainer: </p>
<hr />
<div>'''Welcome to the DeFiChain Wiki'''<br />
<br />
Links to DeFiChain Content of the official DeFiChain Fondation:<br />
<br />
https://defichain.com/<br />
<br />
https://github.com/DeFiCh<br />
<br />
<br />
<br />
'''Links to independent portals with DeFiChain content. '''<br />
https://www.cakedefi-review.com/<br />
<br />
https://defichain-wiki.com/<br />
<br />
<br />
''' General Defi Topics '''<br />
[[Impermanent Loss]]</div>Rainerhttps://defichain-wiki.com/index.php?title=Main_Page&diff=80Main Page2020-12-17T08:49:28Z<p>Rainer: </p>
<hr />
<div>'''Welcome to the DeFiChain Wiki'''<br />
<br />
Links to DeFiChain Content of the official DeFiChain Fondation:<br />
<br />
https://defichain.com/<br />
<br />
https://github.com/DeFiCh<br />
<br />
<br />
<br />
'''Links to independent portals with DeFiChain content. '''<br />
https://www.cakedefi-review.com/<br />
<br />
https://defichain-wiki.com/<br />
<br />
<br />
''' General Defi Topics '''</div>Rainer