INTRODUCING “EARN” BY CAKE DEFI – A revolutionary way of generating stable returns on your cryptos.
Are you looking for a DeFi service that offers all the benefits of liquidity mining without having to worry about its known risks? If the answer is “Yes!”, then you’re in luck.
Introducing EARN – a revolutionary service that offers a new way of generating returns on your cryptos.
What makes it revolutionary and how does it compare with other Cake DeFi services? Read on and find out.
1. What is EARN in simple terms?
EARN is a new Cake DeFi service that allows users to generate cash flow with just one type of crypto and in a more stable manner.
Simply put, EARN can be described as a one-sided liquidity mining service that offers more stability and security.
2. How does EARN compare with other DeFi services? What makes it unique?
Similar to other Cake DeFi services, EARN is also easy-to-use, transparent and secure. It also combines all the known benefits of liquidity mining and lending, some of their processes and the concepts behind them.
That said, what makes EARN exceptionally unique is that it addresses risks that are usually associated with its contemporaries - particularly volatility loss risk and counterparty risk. Moreover, EARN allows you to participate in liquidity mining with just one type of crypto.
3. What crypto can I use to participate in EARN?
You may use EARN if you own either BTC or DFI. Soon, more cryptos will be added to the list. So, keep posted.
4. How does EARN protect users from impermanent loss?
To address risks associated with the crypto market’s volatility, EARN has a volatility protection pool which aims to cover users’ volatility loss linked to EARN.
How extensive is the coverage?
Users get 1% coverage after every 24 hours of participation in the EARN product, full protection to be provided after 100 calendar days of continuous participation. Hence, the longer a customer is invested in EARN, the more extensive their coverage will become (example: a user who allocates and keeps assets in EARN for 100 days will get 100% coverage on those same assets). This coverage is capped at 100% of your invested amount.
That said, it should be noted that the volatility protection pool is entirely dependent on the balance in the pool. This means that even if a user manages to achieve 100% coverage based on the conditions stated above, the said coverage is not guaranteed.
5. How does EARN protect users from counterparty risk?
There are no institutional partners involved in EARN. This means that your assets are allocated into pools that are directly located on the DeFiChain blockchain.
6. In summary, what are the main advantages or benefits of using EARN?
As mentioned earlier, EARN is easy-to-use, transparent and secure. It also combines all of the known benefits of liquidity mining, particularly the following:
- Competitive Returns: Rate of returns are highest in the industry.
- Autocompound Returns: With regular liquidity mining, this is not possible - but it is now, with EARN.
- Hassle-Free: Allocate just one type of crypto and receive rewards in the native coin.
- No Counterparty Risks: No institutional partners are involved. Your assets are directly allocated on the blockchain.
- Market Volatility Protection: A volatility protection pool is put in place to protect users from risks associated with the crypto market’s volatility.
7. What are the basic steps to using EARN?
Again, it’s similar to how liquidity mining works:
- User allocates one type of crypto.
- User’s crypto will be paired with another crypto (depending on the type and amount of crypto allocated) and then invested into a Liquidity Mining pool.
- Rewards will be paid out every 24 hours, minus Cake DeFi’s fees and a fixed percentage of which will be contributed to the volatility protection pool, and are automatically reinvested for the user's convenience. These rewards will be in the same type of cryptocurrency that the user allocates.
8. How do I start using EARN?
Getting started with EARN is easy. Just follow these simple steps:
a) Click here to go to the EARN page on the mobile app.
b) Once inside the app, click on EARN.
c) Allocate either BTC or DFI by clicking on “START EARNING”.
d) On the next page, you will be provided with information on volatility protection. For additional details, you may click on “About Volatility Protection”
e) A summary of your allocated assets will then be provided to you on the next page.
f) Next, you will be taken to the FAQs page where you can check more details about EARN before proceeding.
g) On the following pages, you can indicate the exact amount of assets and type of crypto that you wish to allocate.
h) A summary of your entry will be provided on the next page. Upon checking the details, you may proceed by clicking on “CONFIRM”.
i) After reading and agreeing to the terms and conditions, you are done.
j) You have now completed making an EARN entry.
k) Last but not least, you can check how many rewards you have earned so far. You'll get rewards every 24 hours, so make sure you update your screen regularly ;)
And that’s it! So, what are you waiting for? Use EARN, sit back and watch your cash flow increase without having to worry about the crypto market’s volatility.