Hi, Daniel, how shall we compare lending BTC in CakeDefi

with LP in the liquidity mining pool BTC-DFI?

Hi! Honestly, I would say you can't compare the two, as they are way too different products, destined to different investors and strategies. It all comes down to your objective. Cake BTC lending is a near 0 risk investment, even ensured by Cake partners. You get real BTC as return on your investment, but the rate is the smallest of all. Near 0 risk, smaller returns. On LM, you do not get BTC as reward (other than some satoshi from DEX fees). You receive DFI as reward and it's the most risky investment you can made, specifically why you have to bear the risk of imparmenent loss. In case of a big shift in the market, your most valueble coin will get slowly eroded. In cse you wish to maintain your coins like BTC, ETH or other at all cost, LM will not be the way to go. But if you believe in the DFI valuation potential and some imparmenent loss does not bother you, then LM is therefore for you, especially considering the current APR. The time to hodl is now actually. Let's not forget that in little more than 2 years, 700M of DFI have been issued and considering the capped supply and the reduction in rewards, we have now about 500M of DFI remaining for the next 8 or 9 years. They are actually very different products for very different investors. I can give you my point. I believe in the actuall valuation and use cases of Defichain and some imparmenent loss dos not bother me since I'm in it for the long run, so I highly advise LM. But as any investor, diversification is key so I also have a smaller part (while substantial), in Cake staking and the minority of my funds are in Lending actually

Thank you so much for your analysis. Since I also want to take the same long term strategy like yours, so would you say that it would be meaningful that I shall not put the most part of my btc in form of lending, but in form of btc-DFI LM?

That is what most of us here do because it should pay off the most rewards over the next year in most realistic circumstances. You can model various outcomes on this site here used number of days and rewards input to get a realistic perspective. Most IL calculators do not consider the earnings along the way. just an in and out price which isn't reality. https://upoint.info/calculator/checknow

Hey bro I got a question. Yesterday I told you I bought NVDA en DUSD for liquidity mining. Now how should I calculate impernament loss. Is it with the premium price I paid or do I just follow the stock price? Can you please help me with this?

You'll just need to plug in values and DFI rewards into that calculator I shared over expected time you want to model. It doesn't matter which coin you chose for graphic just use th DEX price for the dStock and obviously a stable coin 1 dollar coin for the dUSD one. There's always Impermanent loss with stable coin mining, but well rewarded with such high DFI aprs. If you want I can enter data and show you an example, but you need to tell me what time period you want modeled (how many days) and what ending price of stock you expect. (Just add same premium ending stock price as you see now)

You can use defichain-income.com

Okay man. Can you fill 1 example for me please. 1300 DUSD- 3.82 DNVDA. I'm going to LP for one year. I expect the price of DNVDA to be 480 USD. I bought at a premium price of 335 USD normally worth 242 USD the normal stock price. The price of DUSD will obviously stay at 1 dollar.

oh yeah? I must have missed that on what page of the site can you do that?

here is a possible outcome. There are a many variables to consider over that period of time. But to be very conservative, I left the DFI reward price at $3.15 what it is at the moment. The dNVDA pool is doing 173% at this price now, but the pool emmissions will decrease 1.6% every two weeks plus we can't know the actual apr due to so many factors like right now. It's higher when DFI is up and lower when it is down. Plus the more people who add to the pool, the lower the apr for those in it. So I just plugged in 120% apr . It may average higher or lower, but if DFI increased in value and is double, triple or 5x of course that APR will shoot way up also. so to be conservative I used same ending price of DFI and 120% apr. Also I wasn;t clear on your ending valuation of dNVDA. I used the 420 price, but it that is your guess on actual NVDA market price, then you could add in the 30% more to it;s price to make it what it could be on the DEX. If the DEX enacts a change that brings it closer to the market before a year is up, I would assume you would pull out temporairly let price reduce an then get back in. but that's all up to you. But just in case I used the lower value you gave. Here is the result at this link. You would have a 229% ROI at year end. https://upoint.info/calculator/checknow?TokenA=dUSD&PriceA=1300&TokenB=dNVDA&PriceB=335&QuantityB=3.88&PriceAend=1300&PriceBend=480&Reward_Price=3.15&Reward_Quantity=905.2&bitly=check&submit=SHOW+ME+MONEY

great examples mate! This calculator and ur examples give me a lot! ... and they r realistic i guess, only disadvantage i see is, that i would have to sell my DFI to get in this pool, otherwise as i can see, this example would gain 890 DFI in rewards, so in 2 years i would have the same amount of DFI without buying a single one. Am i thinking in a good or in a bad way?

Thanks allot man. When the futures and options come out. The smartest thing to do is pull out of LP AND also sell my Dassests. Cause if I don't sell them they will be worth less after the update (assuming there is still a big difference in premium and market price). Is that a right assumption?

When is the update? I thought it is already in effect

I think I'm talking about a different update. I think it's gonna happen Q2 this year. Also another question Pho. Is there a chart or something that tells us what the dex prices were like 15 days ago? A coinmarketcap for dex for example?

https://www.defichain-analytics.com/dex?entry=coinprices ?

Would be cool if DEX can be added to CMC

We are working on it