Why I don't like to provide liquidty to pools
I am not a big fan of liquidity pools. When I first discovered Defi last year, I was all about providing liquidity to Uniswap. The transaction fees weren't as bad last year. I was doing really well and the value of my LPs were going up. I was providing liquidity when Defi tokens were popping big time. While I still did OK, I would have done much better if I was just holding the tokens. At the time I was trying all sorts of pools based on which token I wanted to hold and it just didn't work.
When I discovered Binance Smart Chain I switched over pretty quickly and went back to staking liquidity pools like Cake/BNB. With one coin going up or one coin going down it was still hard to make a nice yield. Most of my increases seemed to be from the coin going up.
And then I discovered single coin staking or the Pancake Swap syrup pool. Now life is simple. Every day I have more Cake coins and I don't really worry about the price. I just worry about getting more and more coins. It is a simple goal and it keeps me on task.
Trading never really worked for me. I was always turning 2000 coins into 1000 coins by trading at the wrong time. With Staking, there is not timing other than waiting. You have the risk of the Interest rate going down. You have the risk of the coin supply increasing. You have risk of flash loan attacks like the one that happened to Pancake Bunny. So it isn't risk free. I could have easily been one of the guys who lost on Bunny. I was staking recursive Cake on Bunny for a while. I was staking the BNB/Bunny pool and also Staking Bunny.
Something did feel right about Bunny. I didn't like how their emissions worked. For every BNB feed they generated I think they minted 4 bunny. As Bunny went to $500, they were creating a lot of value out of thin air with very little to back it. They scared me off. When the market started crashing in May, I decided that it was safer to bet on Binance and its offshoots. CZ may say he has nothing to do with Binance Smart Chain, but I find that a little hard to believe. He is going to make billions of dollars from the increased utility of the BNB token. One must imagine he is holding.
With all of the dangers of Defi, Cake staking through Pancakeswap still seems to be the safest option of all the risky options in Defi that still has a yield worth considering.