The decentralized finance industry has spawned many new money-making opportunities in just a few short years.
Digital asset owners have many options to explore, although passive income remains the ultimate goal for many. Liquidity mining plays a vital role in achieving that goal, and CakeDeFi makes it very accessible to anyone.
era of liquidity mining
When people think of cryptocurrencies, they often envision a particular scenario. You buy a digital asset – or several assets – and wait until the price goes up to sell.
Although not necessarily the best option, it is a common and legitimate way to make money with digital assets. There are more lucrative revenue sources to explore as a digital asset owner, with liquidity mining taking center stage.
More people have shown an appetite for liquidity mining in recent years. The concept is simple and enables millions of people to tap into passive revenue.
There is no need to trade assets every day or transfer money between trading platforms, protocols and services. Instead, it is a “set it and forget it” approach that will continue to generate revenue for the asset holder.
To be successful in liquidity mining, it is necessary to acquire the most qualified digital assets. Doing so is a breeze through CakeDeFi, as the platform meets the needs of many investors, regardless of previous expertise in the digital asset industry.
In addition, the platform helps users acquire their first digital assets and decentralized assets, establish a portfolio, and explore various revenue options, including liquidity mining.
With CakeDeFi, you can get liquidity not only with cryptocurrencies but also with innovative decentralized assets.
For the non-beginner, decentralized assets like DTSLA are nothing but cryptocurrencies and can be mined by anyone – yes, by anyone – on the DeFiChain blockchain. They are not “securities” issued by a company or large institution, as tokens only provide price exposure and do not offer any additional benefits such as dividends, voting rights, etc.
Decentralized assets aka dTokens are tokens on the blockchain that give you exposure to the value of the underlying asset, not ownership, without leaving the DeFi ecosystem.
Instead of tracking and reflecting the actual stock price, they track and reflect a number of variable factors and use oracles to capture those feeds. The price of dTokens may not always reflect the price of the underlying asset due to fluctuations in the supply and demand of dTokens.
The right asset choice can increase the rewards
Liquidity mining with dTokens can prove to be lucrative as you stand to benefit not only from the mining rewards but also from the appreciation of the price of dTokens.
It is easy to invest in digital and decentralized assets through CakeDeFi. The platform has several decentralized asset liquidity pools that users can explore for liquidity mining purposes.
Each pool consists of two digital assets that need to be supplied in equal parts to the user to become eligible for the prize.
Annual returns can exceed 100%, making it one of the most lucrative passive income revenue streams in the crypto industry.
Decentralized asset liquidity creates a new paradigm in the mining industry. Gaining value exposure to real-world assets is an attractive option.
However, when using decentralized assets for liquidity mining, users can maintain their price exposure and earn rewards for keeping investments over time. After acquiring a dToken through CakeDeFi’s swap feature, half of it needs to be converted into other dTokens in the pool. Therefore, it is important to supply both the assets in equal parts and help the users to further diversify their portfolio.
Once both assets are supplied to the liquidity pool, rewards start accruing automatically. These rewards are updated every 12 hours and can be found in the form of DeFi block rewards and small amounts of DTokens supplied in the pool.
DFI is the native token of DeFiChain and can be exchanged for various other cryptocurrencies, stablecoins and dTokens via the CakeDeFi platform.
A bright future for decentralized assets
The option to take price risk and earn liquidity rewards for real-world assets through CakeDeFi makes for a powerful combination.
More importantly, it enables anyone to unlock passive income through cryptocurrency and liquidity mining. Decentralized assets are the next step in the evolution of decentralized finance and offer tremendous potential for the broader industry.
With decentralized assets, investors do not have to convert cryptocurrency to fiat and then to stocks. Instead, they can invest in dTokens through CakeDeFi.
It is possible to get investment in decentralized assets through CakeDeFi and DeFiChain DEXs. Accessing them through CakeDeFi unlocks liquidity mining pools within the same ecosystem, allowing users to put their dTokens to work immediately.
It has become more simple and accessible to generate passive revenue through DeFi and cryptocurrency.