I invested in staking of DFI tokens at Cake Defi in August 2020 when DFI tokens was around $0.26.
Cake Defi offered high APY for staking. It is currently offering 37% for staking.
Staking was really a safe route since our tokens do not reduce like liquidity mining where tokens can reduce due to impermanent loss.
Cake Defi allows us to stake and unstake anytime. It is almost immediate without a lock-in period.
It has an auto-compound function that can help us to compound the reward that we get to earn even more DFI tokens.
I decided to sell one-third of my DFI tokens when the price of DFI rose to around $0.50 on 15 December 2020.
I wanted to lock in the profit when I can since we would not know when the price of the cryptocurrency would drop.
The truth is the price of DFI kept going up even up to this day and it is at around $1.67 now.
When I observe its stability when compared with the rest, it seems to be a stable cryptocurrency even when others are dropping in prices.
Below was a screenshot of my watchlist at Coinbase.
I eventually was attracted by the high APY of liquidity mining at Cake Defi to provide liquidity for the new Dex of Defichain.
I converted my two-third of DFI to provide liquidity to the USDT-DFI pair. I actually sold half of the two-third to get USDT so that I do not need to invest extra cash into it.
Below is a screenshot of the liquidity pool for USDT-DFI.
When I entered into the liquidity mining, the price of DFI was around $0.88. When the price of DFI kept rising, the amount of USDT did increase while my DFI tokens was reducing to achieve the balance of 50/50
The total value of my liquidity supply may have increase but I would have earned more if I sold those tokens that I invested.
The impermanent loss for my part is the possible greater profit in holding my DFI tokens but I did not lose in term of total value of my liquidity pair.
Since my DFI tokens were reducing in the liquidity, I decided to put the DFI rewards that I get to the staking pool that offers 37%.
My logic tells me that it would help to balance a bit of the reduction of DFI due to the increase of prices for my liquidity pair since USDT and DFI need to balance at 50/50.
When my wife learnt about my investment, she was concerned about the drop of the price of DFI so I decided to sell off half of the remaining DFI at the price of about $1.53.
The truth is I managed to get back my capital with an attractive profit but I would have earned more if I held my tokens longer actually.
In my personal opinion, Cake Defi is a reliable company. It is a registered company in Singapore and it has been meeting its targets in its whitepaper like the new Dex in Defichain and the liquidity pools that were mostly above 200%.
I have earned a total of 428.48202 DFI from the liquidity pool for less than 2 weeks. With the current price of around $1.67 at the point of this post, I have actually earned about $715 from the liquidity pool since I started.
The requirement to complete KYC by Cake Defi to use its full service is the only reason that stop some but the service and potential of earning more DFI tokens with its price still moving steadily upwards is really worth the trouble with my personal experience so far.
Cake Defi has started a great promotion for new user to get $20 worth of DFI after the first deposit.
Signing up with a referral link can get another $10 worth of DFI.
The free $30 worth of DFI tokens would be locked in staking for 180 days to prevent abusers from selling the moment they get their hands on the tokens. Those $30 worth of DFI can still get staking rewards throughout the 180 days.
In Cake Defi, staking and unstaking of those that we invest are actually immediate within seconds so there is no lock-up periods like most staking pools.
Investing in DFI tokens is definitely a right decision for me.
If you are interested to find out more or sign up for the $30 free DFI, you can use my referral link below.
I do hope you have enjoyed reading my personal opinion of investing in staking as well as mining in Cake Defi.
Disclaimer: This is my personal reflection and I am not in any position to instruct anyone what they should do. I am not responsible for any action taken as a result of this post. My post can only be a reference for your further research and growth. By reading this post, you acknowledge and accept that.