Baking Cakes

Baking Cakes

By Jelly Fish | cryptofun | 14 Jan 2021


Before the New Year I got lucky enough to get 100 TWT tokens for free as an airdrop from Binance. TWT is Trustwallet's "native token", it's not traded at Binance, so I had to install the wallet on my smartphone and to withdraw my TWTs there. I paid 0.5 TWT fees and 99.5 TWTs landed in my wallet with no problem.

TWT is on BSC chain, so I could just swap my free tokens for about 10 bucks of BNB and withdraw it back to Binance. However, I decided to try BSC-based DeFi and headed to Pancake Swap, a DeFi dApp promoted by Trustwallet.

Pancake has "pools" (a kind of "single-coin staking") and "farms" (for "liquidity pairs"). I headed to pools, because I didn't want to add anything except my free TWTs.

First I staked my TWTs to earn some CAKEs. Then TWT staking finished, I swapped TWT into CAKEs and staked them in the CAKE compounding pool. After some time I withdrew it all and got about 20 CAKEs in total. I staked them in TEN pool, to earn Tenet project's tokens (simply because I've been monitoring the project for quite some time already). Then I got out again and put my 20 CAKEs into BTCST pool.

Well, no matter how low BSC-based pools commissions are compared to ETH-based ones, hopping from pool to pool with a 10 bucks stack will eat almost all the profits (unless some mined token pumps hundredfold). I expected it, however.

I only wonder, what if we remove the CAKE token (or any other "incentive token", for that matter) from the system? That is, what if "liquidity mining" would profit from "transaction fees" only -- would all that DeFi (or rather, AMM) thing so desirable then?

Anyway, right now Pancake is baking its CAKEs at the speed of light.

 

 

Posted Using LeoFinance Beta

Photo by Andrea Piacquadio from Pexels

 


Jelly Fish
Jelly Fish

Cryptofreak


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