Hi guys, a finance-related question: farming can earn LP tokens, like $CAKE. The value manifestation comes from liquidity provision and fees collection. This is obvious. What is the value manifestation of staking $CAKE tokens in Syrup Pools? Why staking $CAKE can generate "high APR" at "low risk"?
Jun 14, 2021, 12:24 PM
https://cryptozombies.io/
First stop for anyone new to solidity.
Jun 14, 2021, 12:32 PM
Hi, I suggest you to read https://docs.sushi.com/products/yield-farming and check the difference between masterchef and sous chaf
Jun 14, 2021, 12:34 PM
Thanks, Sebastien . "and 0.05% of all swaps on all chains are accrued by xSUSHI holders (https://app.sushi.com/stake)." This sentence is what I was looking for.
Basically staking earns dividends.
Jun 14, 2021, 12:37 PM
CAKE is inflationary.
Jun 14, 2021, 12:41 PM
And what does that imply?
Jun 14, 2021, 12:43 PM
Whenever people hold the token without selling it, that decreases the selling pressure of the token and it appreciates in value. So the price increases. That's why Cake incentivizes you for hodling the CAKE token by putting it in a staking pool.
Jun 14, 2021, 1:03 PM
Right, from the exchange's perspective, staking helps reduce circulating supply. From the holders' perspective, holding tokens can earn additional tokens. Another related question is: how are fees distributed to token holders? For example, among 0.25% trading fee, 0.17% goes to liquidity providers. Wondering how fees are distributed to them, technically.
Jun 14, 2021, 1:10 PM
The fees distribution is different for different tokens. You have to look at their docs to understand how they distribute the fees.
Jun 14, 2021, 1:11 PM