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Has anyone considered building a liquidity pair with CAKE and UNI? Although the trading volume of this pool isn't very active, I think the main point isn't there—it's about profiting from price swings within the fluctuation range. It sounds a bit niche, but upon closer thought, it's actually quite interesting.
First of all, it can save a lot on transaction fees. We all know that some popular trading pairs have high fee pressures, and this combination happens to avoid those unnecessary cost expenditures. More importantly, both CAKE and UNI have deflationary mechanisms, so the longer you hold, the denser the value of the tokens becomes.
Basically, it's about earning on both ends: one side capturing arbitrage opportunities within the fluctuation range, and the other enjoying the appreciation potential of the tokens themselves. This approach is suitable for those willing to make medium- to long-term arrangements.
Low transaction fees can indeed save money, but is there enough room for volatility?
The deflationary mechanism sounds good, but I'm worried the coin price might just drop back down.
How much principal is needed for this kind of play to be profitable?
Honestly, it's a bit niche. Will the risk be too high?
Is the liquidity on the CAKE side still good? I'm afraid of being wiped out by slippage.
Actually, I'm more curious about your view on the future directions of these two coins.
The premise for medium to long-term planning is that these two projects still have momentum.