Liquidity Mining or Staking - using DeFiChain or Cake

From DeFiChain-Wiki

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)


- Pure DFI risk

- Rewards are described as APY (with compound interest)

Cake or DeFiChain?


- 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