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Liquidity Mining With Decentralized Assets: The Next Big Source Of Passive Income?

Written by: Mustafa Mulla

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Mustafa Mulla

Mustafa has been writing about Blockchain and crypto since many years. He has previous trading experience and has been working in the Fintech industry since 2017.

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Apr 21, 2022

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The decentralized finance industry has given rise to many new money-making opportunities in just a few short years.

DIgital asset owners have numerous options to explore, although passive income remains the ultimate goal for many. Liquidity mining plays a crucial role in achieving that goal, and CakeDeFi makes it very accessible to anyone.

The Era of Liquidity Mining

When people think of cryptocurrencies, they often envision one particular scenario. You buy a digital asset – or multiple assets – and wait until the prices go up to sell.

Although not necessarily the best option, that is a common and valid approach to making 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 move funds 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, acquiring the most eligible digital assets is essential. Doing so is a breeze through CakeDeFi, as the platform caters to many investors’ needs, regardless of previous expertise in the digital asset industry.

Moreover, the platform helps users acquire their first digital assets and decentralized assets, set up a portfolio, and explore various revenue options, including liquidity mining. 

With CakeDeFi, you can mine liquidity with not just cryptocurrencies but also the innovative Decentralized Assets.

For the uninitiated, Decentralized Assets such as dTSLA are nothing else than cryptocurrencies and can be minted by anyone – yes, anyone – on the DeFiChain blockchain. They are not “securities” issued by a company or a large institution, as the token only provides price exposure and no extra benefits like dividends, voting rights, etc.

The Decentralized Assets aka dTokens are tokens on the blockchain that give you price exposure, not ownership, of the underlying asset 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 mirror the underlying asset’s price because of fluctuations in the supply and demand of dTokens.

The right asset choice could skyrocket the rewards

Liquidity mining with dTokens could prove lucrative because you stand to benefit not just from the mining rewards but also from the price appreciation of the dToken. 

Investing in digital and decentralized assets is a breeze through CakeDeFi. The platform has numerous Decentralized Assets liquidity pools users can explore for liquidity mining purposes.

Every pool consists of two digital assets a user needs to supply in equal portions to become eligible for rewards.

The annual returns can be well over 100%, making this one of the most appealing passive income revenue streams in the crypto industry.

Decentralized assets create a new paradigm in the liquidity mining industry. Gaining price exposure to real-world assets is an appealing option.

However, when using Decentralized Assets for liquidity mining, users can maintain their price exposure and earn rewards for holding the investment over time. After acquiring the dToken through CakeDeFi’s Swap feature, half of it needs to be converted to the other dToken in the pool. Therefore, supplying both assets in equal portions is crucial and helps users diversify their portfolios further. 

Once both assets have been supplied to the liquidity pool, rewards begin accruing automatically. These rewards update every 12 hours and can be found as DFI block rewards and small amounts of the dTokens supplied to the pool.

DFI is the native token of DeFiChain and can be exchanged for various other cryptocurrencies, stablecoins, and dTokens through the CakeDeFi platform. 

A Bright Future for Decentralized Assets

The option to seek price exposure to real-world assets and earn liquidity rewards through CakeDeFi creates 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 provide tremendous potential for the broader industry. 

Through Decentralized Assets, investors do not need to convert cryptocurrency to fiat and then to stocks. Instead, they can invest in dTokens through CakeDeFi.

Gaining exposure to Decentralized Assets is possible through CakeDeFi and the DeFiChain DEX. Acquiring them through CakeDeFi unlocks liquidity mining pools within the same ecosystem, allowing users to put their dTokens to work right away.

Achieving passive revenue through DeFi and cryptocurrency has become much more straightforward and accessible. 

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Mustafa Mulla

Mustafa has been writing about Blockchain and crypto since many years. He has previous trading experience and has been working in the Fintech industry since 2017.

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