I Lost on CAKE
SOurce
CAKE is the native token of Pancake Swap which is a Defi Platform/ Exchange on the Binance Smart Chain. I invested around 700 USD on CAKE and put that CAKE into Auto Farming Pools that generating an annual APY of around 70 percent. So all I needed to do was sit and watch my Money Grow as at that point the Price of CAKE was around 20-25 USD and I was happy with getting a small slice of Pie every month in CAKE.
But as we all know there was a slight DIP in the market and sadly my CAKE Investment went from 700 USD all the way to 300 USD making me a loss of more than 50 percent. Normally that would have been scary for me but fortunately, I forgot about that Investment and only looked at it after the Market started to get back on track. Fortunately, my CAKE holdings have increased thanks to the effect of Compounding and now I hold about 40 CAKE tokens if the price of CAKE returns to an average of 25 USD I will make a decent chunk of return on my Investment.
So What Will I Do?
I have decided to HODL my CAKE but instead of Staking it in Pancake Swap, I have switched the platform to Donkey Finance which is something I am currently looking into for Future Investments. Donkey Finance is a new Defi Platform that I taking an interest in and hopefully by the time the Market climbs back up to its old peak I make some more CAKE for myself. I have also taken some significant risks by going for Donkey Finance as that is a little bit riskier but it also is giving me around 2x the Return I was getting in Pancake Swap so yeah Higher the Risk Better the Return and Vice-Versa.
Better to hold and see how it turns out but I am sure patient is the key you will surely get your funds back and you will make good chunks of gain from it.
Hello @arunava
Donkey Finance , I don't know that platform, but if it is relatively new, for sure it must have a good APY, like all those projects when they start.
Selling Cake at the current price after buying it at $25, would be a big loss.
Better to wait, be patient. The market to recover.
Hello friend @arunava, in these cases it is always better to be patient and wait for the market to recover. I think you do well not to get rid of your cakes but switch to a platform that gives you better performance, I had not heard of it, if it is new maybe a good performance for a while, but be aware of it. Cheers!
Hello @arunava, there is nothing left but patience, in the future the price of cake will recover and you will surely triple your investment, I had not heard the platform defi you mention, as you say at greater risk higher income.
So long, have a great week.
hi @arunava
Wouldn't it be fair to say, that you didn't lose until you sold? And taking into consideration that we're pretty much done with recent market correction - selling it right now wouldn't be a smart idea.
So just hold on to your bags, don't sell if you don't have to and your CAKE will surely bring you some solid profits.
Cheers, Piotr