Crypto Academy / Season 3 / Week 1 - Homework Post for @imagen|| Staking on Cheesecakeswap and Hyperjump Platforms – A Detailed Submission
Thank you, Professor, @imagen, for your amazing lecture on Staking. I have been earning crypto on staking. Currently I am staking on 6 different platforms, which include Hyperjump, Cheesecakeswap, Pancakeswap, Pancakefork, Julswap and Brickchain.
For the purpose of this homework, I will be writing on the first 2: Hyperjump and Cheesecakeswap platforms.
To further do justice to the piece and ensure my work is orderly and complete, I will arrange it under the following sub-headings:
Hyperjump Platform and How it Works
Cheesecakeswap Platform and How it Works
Comparison Between Hyperjump and Cheesecake
Why Hyperjump is More Profitable
What is Impermanent Loss
What is Delegated Proof of Stake (DPoS)?
Conclusion
Hyperjump Platform and How it Works
The Hyperjump platform is decentralized application (DAPP) that runs on Binance smart chain and is supported by Trust wallet. Governance token on this platform is HyperAlloy, commonly referred to as ALLOY.
With a market cap of $319,132 USD and a circulating supply of 3,453,286, the token has become popular by the day. As the token is a yield farming token, it has no fixed total supply, more is being mined daily.
The token has an emission of 3.14 per block bought back and it is burnt by 0.1% AMM fees. Now, we talk about how to stake and earn rewards on Hyperjump platform.
Staking and earning on Hyperjump
One can use trust wallet to do staking on Hyperjump. First, you need to have BEP 20 BNB token in your trust wallet and then go to [the exchange platform]( HyperSwap - Gamify DeFi (hyperjump.fi). Here you can swap the BNB or any other BEP 20 token listed on the Hyperjump platform to ALLOY.
After buying your ALLOY, you need to go to the staking pool [HERE]( HyperJump - Gamify DeFI). In order to stake and start earning, you need to convert your ALLOY to Mechs. It takes 5 ALLOY tokens to make one Mech. The Mech is the official staking token on the platform. Let me point out that you can’t buy the Mech directly on the exchange, it must be built from ALLOY.
For instance, if you bought 100 ALLOY at the current price of $0.9/ALLOY, you can make a total of 20 Mechs and ready for staking. You can’t stake on the Hyperjump platform without using Mech.
Screenshot of how to build Mechs
Staking Pools and Rewards
Currently, there are four mining pools on the Mech staking division on the Hyperjump platform: one compulsory pool and three optional pools.
Screenshot of ALLOY mined by my Mechs, in addition to ONT
The compulsory pool is the ALLOY pool. Here, immediately you build mechs, it will start generating ALLOY as profit. Thus, you don’t even need to click the stake button before your Mech start mining ALLOY.
The three optional mining pools are WINGS pool, SPHN pool and ONT pool. On these pools, you have to stake your mech in order to start mining the respective tokens. This means, if you choose one of the optional pools, your Mech will be mining both ALLOY and the chosen coin. For someone that choose to stake mech on ONT pool, the Mech will mine both ONT and ALLOY at the same time. Thus, when harvesting, he will harvest both. The ALLOY mining is a bonus for staking on the Hyperjump platform.
Screenshot of my ONT pool(Number of ALLOY =418X5=2,090 ALLOY)
The three optional pools are subject to expiration and when it expires it will stop mining. When this happens, the platform will show it under inactive pools. Mining will only stop on the optional pool, but ALLOY will still be mining until the Mech is unstaked. In order to know how long an optional pool will stay before expiration, the number of minutes is displayed under each pool for which after reading the pool will be removed.
For investors on those pools, they need to unstake from the inactive or expired pools and stake on active pools.
The reward of each pool depends on the APR. The pools and their APR are ALLOY (89.72%), WINGS (114.61%), SPHN (138.62%) and ONT (128.55%).
At times the platform can have more or less number of pools to stake on. Thus there is no fixed number of pools to mine from.
Please Note: You can unstake your Mech and convert it back to ALLOY any time you deem fit. It is just a reverse process and can all be done on the same platform with little fees called gas fees.
Every transaction on the platform attract a gas fee paid with BEP 20 BNB, ranging from buying ALLOY, approving ALLOY, building Mechs, approving Mechs, staking Mechs, harvesting profits, unstaking Mechs, converting Mechs to ALLOY and swapping the ALLOY back to BNB or USDT.
Cheesecakeswap Platform and How it Works
Also built on Binance smart chain, Cheesecake is a decentralized application that supports BEP 20 tokens. It has Cheesecake (CCAKE) as its native token. With a total supply of 3,169,906.137077, CCAKE is yield farming token, where investors can earn reward by staking CCAKE and other tokens.
How To Stake and Earn on Cheesecakeswap Platform
The DAPP is supported by trust wallet. First thing is to ensure you have BEP 20 BNB or BEP 20 USDT in your trust wallet. then paste the link Cheesecake Swap - $0.269 on your DAPP. This will open the exchange page for swapping your BNB to CCAKE.
After getting your CCAKE, you can then go to Cheesecake Swap - $0.269 to stake the CCAKE. Currently, there are 12 staking pools on the platform. All are for mining CCAKE. They include CCAKE pool, BUSD pool, WBNB pool, BTCB pool, ETH pool, DOT pool, SXP pool, UNI pool, LINK pool, CAKE pool, BAKE pool and JULD pool.
Apart from the CCAKE pool, every other pool attracts a deposit fee charged on the token to be deposited.
Comparison Between Hyperjump and Cheesecake
In a sharp similarity, both run on Binance smart chain (BSC) and as such activities on the platforms attract some gas fees charged on BEP 20 BNB token. Thus, one can not stake on the pools without BNB BEP 20 token even after buying the token to be staked.
It is important to note also that both platforms give first priority to their native tokens. On Hyperjump, ALLOY is mined immediately you build mech, while on Cheesecakeswap, only CCAKE can be mined.
The difference between the two platforms are as follows:
1.On Hyperjump, you can mine more than one token, but on Cheesecakeswap you can only mine one token.
2.The APR on Hyperjump is relatively high on all pools, but on Cheesecakeswap it is very low. Thus, mining on Hyperjump is faster than on Cheesecakeswap.
3.On Hyperjump, the total value locked (TVL) is $16,045,418 currently, while the current TVL of CCAKE is $2,041,837.14.
Why Hyperjump is More Profitable
From the analysis above, Hyperjump is more profitable. Even from my experience, I can make up to $6 daily from Hyperjump staking. The APR on CCAKE is very low, 76.75% at the moment. This makes it difficult for me to make up to $4 daily on CCAKE.
Thus, from my opinion, it is more profitable to stake on Hyperjump than on Cheesecake swap.
What is Impermanent Loss
You bought a token, for instance CCAKE at $3.6 and staked it for mining on the first pool on the platform. then, during the dip, the price reduce to $0.27. The reduction of the value of your staked token is termed What is Impermanent Loss. This is normally caused by market volatility. Almost every investor in staking pools experience it.
This is also applicable to liquidity providers. It follows that the larger the price decrease, the bigger the loss.
The loss is said to be impermanent because it is caused by market makers under a particular market condition called automated market maker. Thus, over time, the loss will change to gain as profits are added and the price of the asset bounce back.
What is Delegated Proof of Stake (DPoS)?
Developed by Daniel Larimer, in 2014, DPoS is a consensus algorithm that came as an upgrade of the proof of work (PoW) and Proof of Stake (PoS) algorithms.
Some of the projects that makes use of this algorithm are Bitshares, Steem, Ark, and Lisk.
According to Binance academy:
A DPoS-based blockchain counts with a voting system where stakeholders outsource their work to a third-party. In other words, they are able to vote for a few delegates that will secure the network on their behalf. The delegates may also be referred to as witnesses and they are responsible for achieving consensus during the generation and validation of new blocks. The voting power is proportional to the number of coins each user holds. The voting system varies from project to project, but in general, each delegate presents an individual proposal when asking for votes. Usually, the rewards collected by the delegates are proportionally shared with their respective electors. Source.
DPoS is more scalable and accommodates more number of transactions per second (TPS), compared to PoW and PoS.
Conclusion
It is important to note that staking is a great opportunity to make money by those who can’t trade. One can actually be making money without doing anything, provided they stake on the right platform.
Staking is also capital intensive. Stakers with the highes capital earns more within the period for which the pool is active.
Will you like to stake your tokens and earn money? The choice is yours. Thank you for reading.
Hello @greatness96, thank you for participating in the Steemit Crypto Academy.
You did a good job, I really liked the description of the 2 platforms you selected to make the assignment and why one of them is more profitable than the other, however, you must Avoid as much as possible the use of textual citations within your work even if they are properly referenced, because the intention is that you explain in your own words everything that is requested. On the other hand, you should center the images and try to use text dividers to make reading more pleasant.
Homework task: 7.0
Thank you very much. I will make corrections in future homework tasks.
very well done.