The All New Liquidity Mining Freezer

defi Aug 19, 2021

Dear Bakers,

Our ‘Freezer’ isn’t just growing, it’s going full-scale industrial to become a real heavyweight in our plethora of product offerings. What started as an add-on product in our old Confectionery program, has already turned into one of the most lucrative cryptocurrency products for our bakers to generate constant passive income for years to come.

Earlier this year, due to the incredible response from all of you about our existing Freezer, we promised that we’d be extending it, to make it even bigger and even better. As a result, we’re absolutely thrilled to introduce our new ‘Liquidity Mining Freezer’, which will go live on 19 August 2021 at 10am UTC (6pm SGT).

Starting today, you are not only able to receive higher returns on your Staking coins, but you are also able to enjoy phenomenal returns on all our supported Liquidity Mining coins on the platform. Liquidity mine your BTC-DFI, ETH-DFI, USDT-DFI, DOGE-DFI and many more liquidity mining shares / pairs and receive up to 12.75% more in rewards if you lock them away for 10 years.

With the launch of the new ‘Liquidity Mining Freezer’, we want to empower our bakers to individually set their preferential lock-away period — from just one month right the way through to up to 10 years — adjustable in just a few clicks. At the same time, you are guaranteed a rebate of Cake DeFi’s fees, increasing your overall yield.

As we had previously communicated, the ‘Freezer’ is a stand-alone product and over the course of the next few months, we’ll be rolling it out to a number of our current and future product lines including (but not limited to) Lending, other Staking coins and, quite possibly, even tokenized stocks.

Now it’s time to showcase our new ‘Liquidity Mining Freezer’. To help explain how things work, we’ve hired Alice and Bob again — the two most experienced (and imaginary) bakers in town — to take you on a tour through our amazing new ‘Liquidity Mining Freezer’. Please note that the numerical values below are for illustrative purpose only; they may differ from real world values.

Alice is still a student, lives at home and wants to invest just 1,000 BTC-DFI shares. Bob, on the other hand, has been saving up his entire life and is willing to invest 100,000 BTC-DFI shares in the ‘Liquidity Mining Freezer’. Both have the option of withdrawing their returns or reinvesting and compounding them (Figure 1).

After Alice buys 3 BTC-DFI shares, she navigates to the ‘Freezer’ and considers the options that her favorite cryptofinance platform offers. After which, she scrolls down to the yield calculator and keys in the amount of DFI she wants to freeze as well as the investment period.

Figure 2 shows that Alice would receive 5 BTC-DFI by putting her 3 BTC-DFI into Liquidity Mining for 12 months. However, if she decides to lock away her BTC-DFI for 12 months using the ‘Liquidity Mining Freezer’, then she would earn an additional 0.3 BTC-DFI ($217) extra.

However, if she were to add her BTC-DFI in the Liquidity Mining Freezer for 10 years, then she would get an additional 85% discount on the liquidity mining fees (Figure 3). The difference, when compared to just liquidity mining without the freezing of assets is tremendous! She would receive a sizable 2.4 BTC-DFI ($1,648) on top — just like that! If Alice was to start thinking about the long-term gains and benefits, by freezing her 3 BTC-DFI shares for 10 years, she would get to enjoy the extra returns.

Bob however, is investing from a totally different perspective. His focus target is to receive enough cash flow from his investment to invite his wife to a once-in-a-lifetime, around the world cruise next year. For this purpose, he transfers his DFI to Cake DeFi to generate the needed cash flow out of his investment to pay the cruise bill. Since Bob wants to maximize his returns, he navigates over to the ‘Freezer’ and keys in his data into the yield calculator.

The result is striking: By buying 100 BTC-DFI shares and putting them into Liquidity Mining for just 6 months, Bob would receive nearly 33.9 BTC-DFI in cash flow. Alternatively, if he freezes his shares for 6 months, then he would earn an additional 2.8 BTC-DFI ($1,949) extra, which is enough to spoil his wife with some fancy champagne and her favorite pastries during the cruise (Figure 4). In the end, that’s enough of a compelling case for Bob and without hesitation, he puts his 100 BTC-DFI shares into the Liquidity Mining Freezer, already planning out the trip details in his mind.