As all good bakers know, baking just one cake is never enough, especially when it’s your signature cake. When the recipe is this good, you add all the ingredients in, give it a stir and make a full batch! That’s exactly what we did with our brand-new Decentralized Assets liquidity pools on Cake DeFi.
New liquidity pools such as DUSD-DFI, dTSLA-DUSD, dQQQ-DUSD and many more — which are all part of the new Decentralized Assets feature on DeFiChain — are now fully integrated on Cake DeFi. Liquidity Mining rewards have also started pouring in, and with literally hundreds of percent in annualized returns there’s no better time to start liquidity mining than now, while the liquidity pools are still relatively small!
The pools available right now are just the start. With its new Decentralized Assets, DeFiChain rolled out a total of 16 new liquidity pools! We picked the most liquid pools for our bakers in order to protect them from unfavourable trades. As such, we are currently offering 13 liquidity pools and will be integrating more liquidity pools as soon as they reach $1 million in total liquidity and consistently stay above this crucial threshold.
So what are you waiting for? Swap your coins and put them into our new Liquidity Mining Pools like dTSLA-DUSD, dQQQ-DUSD, dGME-DUSD and many more for high annualized returns! Try out the brand-new Liquidity Mining Pools Now
What are Decentralized Assets such as dTSLA on Cake DeFi?
Decentralized Assets such as dTSLA are in fact nothing else than cryptocurrencies and can be minted (created) by anyone on the DeFiChain blockchain.
The price of dTokens like dTSLA is determined by supply and demand and can be traded on a decentralized exchange (DEX). What makes them interesting, though, is that the price may not necessarily be correlated to the rest of the crypto ecosystem, but rather to real world assets.
If, for example, you invest in dTSLA, then you are not investing into the real TSLA stock, but you are rather investing into a digital token that is likely to follow the price of TSLA amongst other variables. As such, dTSLA is a decentralized asset, created by anyone and backed by nothing else but cryptocurrencies such as DFI, BTC or stablecoins like USDT or USDC.
Learn more about what decentralized assets are and how they work on DeFiChain by clicking here.
What can I do with the new Decentralized Assets on Cake DeFi?
There are two main things you can do with Decentralized Assets such as dTSLA on Cake DeFi:
- Invest in Decentralized Assets to get price exposure, by just buying and holding them and
- Participate in Liquidity Mining with Decentralized Assets after you bought the respective dToken pair you’d like to do it with
Here’s a step-by-step guide how this is done on our platform:
1) How-to: Invest in Decentralized Assets on Cake DeFi
Step 1: Log into Cake DeFi and open your balances page.
When you scroll down, you can then find a selection of all the new Decentralized Assets currently available on Cake DeFi.
Step 2: Choose a Decentralized Asset of your choice and click on “SWAP”
Next, you choose which Decentralized Asset you would like to invest in. It can be dTSLA, dAAPL, dQQQ, and many more – no matter which one you are going for, the buying process is the same.
Click on “SWAP” next to the Decentralized Asset you want to buy, and a pop-up window appears.
Here, you can select which cryptocurrency you want to use to buy the Decentralized Asset of your choice. Simply enter the amount you want to buy into the input field.
In the example above, we are buying dTSLA with Bitcoin. A summary of the transaction details will then appear and if you are ok with the conditions, all you have to do is to click on “Review Swap”.
In the next window, you can once again see all conditions of your swap. By ticking the box below the text, you confirm and agree to the terms and conditions. Simply enter your two-factor authentication code to verify the account ownership, and then click on “Submit Swap Request”.
All done! Your swap request is now being processed, and you can see the status of your swap by scrolling down to “Deposits and withdrawals” on the same page.
2) How-to: Participate in Liquidity Mining with Decentralized Assets
Now that you have bought a Decentralized Asset, you can either just hold it for price exposure, or you can put it into our new Liquidity Pools and get an additional yield on top of it.
Step 1: In the top menu bar, select “All products” and then click on “Liquidity Mining”
Step 2: Choose a Decentralized Assets Liquidity Pool that you want to participate in
On the Liquidity Mining product page, scroll down until you see the “Decentralized Assets” Liquidity Pools.
In the next window, you can see that every dToken has their own Liquidity Pool – it always looks like “dToken-DUSD”. If you want to know more about dToken and what they are, you can find a thorough explanation here.
Next, choose the liquidity pool that you want to get into. Since we bought dTSLA in the previous step, we will be adding liquidity to the dTSLA-DUSD pool.
Step 3: Swap 50% of your dToken to DUSD
Before you can add liquidity to the Liquidity Pool of your choice, you first need to get the pool’s other dToken as well – DUSD. The reason for that is that Liquidity Mining always works with two coin pairs. Hence, you click on “SWAP” next to the pair of your choice in order to get DUSD – the second coin pair of, in our example, the dTSLA-DUSD Liquidity Pool.
Next, you repeat the same steps we already went through in “1) How-to: Invest in Decentralized Assets on Cake DeFi”, with the only difference being that this time you swap 50% of the dToken you previously bought into DUSD.
Step 4: Add liquidity to the Liquidity Pool of your choice
Now we are at the final step of the process – adding liquidity! After the swap has successfully gone through, just return to the Liquidity Mining page, and click on “ADD LIQUIDITY”
An overview pop-up window will appear:
Confirm your inputs, and click on “ADD” in the bottom right corner of the pop-up window.
In the next screen, confirm your inputs by accepting the terms and conditions and click on “CONFIRM” in the bottom right corner of the pop-up window.
And voilà! You are now Liquidity Mining with Decentralized Assets on Cake DeFi.
You will now start to see rewards pouring in about every 12 hours, mainly in the form of DFI (DeFiChain block rewards), but also small amounts of dToken you put in (e.g. dTSLA and DUSD)
The main returns in liquidity mining on Cake DeFi are in DFI, you get the other coins too, however the returns on the other coins come from the transaction fees.Example dTSLA - DUSD:
dTSLA Rewards = Swap Fees on DEX.
DUSD = swap fees on the DEX.
DFI Rewards = swap fees on the DEX and protocol rewards.This is also the reason why most of the rewards consist of DFI.
Congratulations! These rewards can then either be withdrawn or you re-enter our other products like Staking and compound your yields. Whatever you decide, the regular income is yours!