What’s the downside of dropping a rather large sum in CAKE to lock it up and forget it?

As the title says.

What's the biggest downside of dropping a large sum on CAKE, lock it up and forget about it for 52 weeks, making (potentially now) 94% back?

The price of CAKE dropping more is the obvious one, but let's assume it stays at 4 USD – wouldn't this be rather a smart thing to do?

What's the downside of dropping a rather large sum in CAKE to lock it up and forget it?

15 thoughts on “What’s the downside of dropping a rather large sum in CAKE to lock it up and forget it?”

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  2. Token crashes more than your apr percentage, OR token spikes higher than Apr and you’re locked in and can’t sell.

    Those are the downsides.

  3. Should still make a little bit of profit, and there’s a big chance pancake will go back up a bit too, with cryptos going up later.

  4. Tokenomics: there’s a reason that APY is offered. I would also not place a large amount of money in to anything which is so reliant on a private network like BSC which can be turned off by centralised powers

  5. Your assumption is atrocious.

    That pretty much invalidates use of word smart.

  6. My guess is that most people locked for 52w on day1. Once it unlocks, theyll want to take gains, or exit completely since the apr keeps dropping. At that point everyone else whos still gonna be locked can only watch

  7. Its your assumption thats the problem. CAKE has gone from 18-20 to 4 in a short time frame. If you lock it up and then its worth $1 when its done…..

  8. apy will keep dropping and you will be stuck with a low apy for many many weeks

    i locked my cakes for 52w and watched it from 300 to 94 and continue to fall everyday

  9. We don’t know if Cake will become deflationary. It should, and if you happen to unlock a bit before or after that moment, then you are in a good position imho.

    If Cake were to see significant volume increased, if it’s wodely used and thus become deflationary, you would be in a pretty good situation.

    I’m planning on holding cake for at least 5 years unless I see a critical failure. They seem to be working to fix critical errors, so they’re preventing scenarios of critical failure and I’d hope to see that continue.

    I think if you sincerely can lock it and forget it, without it being the majority of your portfolio you’ll be ok. But I wouldnt call this a core crypto like btc, eth, or BNB.

    So be mindful of your basket of assets and managing your cashflow.

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