How to make the most out of your assets on DeFiChain
DeFiChain often uses the slogan “Go beyond HODLing.” HODLing is great as it allows you to take a long-term view of your assets. But why let your investment just lay around without any usage when you can make them work to earn additional rewards for you - all with the security and convenience of the DeFiChain wallet?
On DeFiChain, there are two main ways to let your investments work for you - Liquidity mining and Staking.
Liquidity Mining
With liquidity mining, you lend your assets to the decentralized exchange (DEX) and receive DFI & commission fees in return. You help to build up a “trading”-pool like dTSLA/DUSD and provide liquidity so others can swap their dTSLA for DUSD or vice versa.
Liquidity mining is needed on any DEX to build up huge liquidity pools and enable decentralized trading. Liquidity Mining can be done with cryptocurrencies or dTokens. There are over five dozen liquidity pools available on the DeFiChain DEX. While the cryptocurrencies are paired with DFI, the dAssets trade with DUSD as a pair.
Staking
In a Proof-of-Stake blockchain, you stake the native token to process transactions and keep the blockchain secure. Token holders are incentivized to help support the network. By staking your crypto, you earn rewards without having to sell them.
There are two ways to stake your DFI tokens: the decentralized or via a third-party staking service provider. You can stake in a fully decentralized way by creating a masternode with 20,000 DFI. If you don’t know how to run a masternode or don’t want to deal with the technical hussle behind it, you can stake your DFI tokens on CakeDeFi or DFX.
