Stake DEXF and Earn DEXF: Wizard × Dexfolio Partnership

5 min readSep 18, 2021

Staking can be addictive and rewarding, as many investors can attest. This is especially so with the gamification of many industry entities. In the world of defi, investing is not only rewarding but can also be fun.

Dexfolio believes its community should enjoy the benefits of partnerships with other industry players, and we are proud to announce our partnership with Wizard. With its quirky interface and gaming focus, players can take part in decentralized gaming while earning rewards from staking their tokens.

Why Wizard?

A partnership with Wizard offers our community the opportunity to stake DEXF tokens and earn DEXF tokens as a reward. Besides, the team over at Wizard are the good guys and think defi investing should be fun. We happen to agree.

Wizard is a unique platform where users can combine their love of crypto and gaming and earn rewards. Its native token is $WIZARD, a one-of-a-kind fantasy token. Wizard also brings with it an NFT marketplace, another benefit for Dexfolio’s users.

Dexfolio’s Staking Pool on Wizard

Dexfolio has established a staking pool on Wizard where users can benefit from earning DEXF in exchange for staking DEXF tokens as well as participating in other opportunities available on the Wizard platform. DEXF is Dexfolio’s native token and is necessary to participate in governance.

Fees are 0% to stake and 2% to unstake.

What Does it Mean to Stake LP Tokens?

LP tokens are generated to represent the share of a liquidity pool owned by the holder. But they aren’t just useful at home; they can also be used in other places. Staking tokens is a popular way of generating passive income and it helps to add liquidity and stability within the defi space. Each liquidity provider receives trading fees for the staking period of their investment.

LP staking is the mechanism that allows automated market makers (AMM) to be non-custodial and operate as decentralized systems. No third party holds users’ tokens or has access to wallets.

For the Dexfolio-Wizard partnership, this means that all activity conducted within both entities is fully decentralized, one of the project benefits. However, Dexfolio’s pool will be straightforward: users will deposit DEXF tokens and receive DEXF in return.

How Does Staking Tokens Provide Liquidity?

In a staking pool, users stake tokens and receive rewards in return. Tokens are locked up for a staking period (which varies according to the rules of the liquidity pool’s smart contract). However, Dexfolio’s pool is simple. It’s DEXF in and DEXF out, without the use of LP tokens.

Every LP Provider Benefits

In the case of the Dexfolio-Wizard partnership, it makes sense to create a mutually beneficial relationship that takes advantage of the strengths both companies bring to the table. Both communities can participate, and each staking contract aligns to create a robust framework that helps maintain liquidity, offers plenty of tokens to choose from, and gives every liquidity provider the opportunity to participate fully in a decentralized platform.

Staking Options on Wizard

Wizard offers various staking options for the Dexfolio community along with a variety of tokens. There is the Dexfolio staking pool, of course, but there are other farms, pools, and opportunities to engage with Wizard’s other partners. Users can also make investing a fun activity by playing some of the games that Wizard offers; its own $WIZARD token is among the unique tokens of the fantasy gaming world.

What can go wrong?

Staking in the defi environment carries significant risks and there are plenty of pitfalls for newcomers. The best advice is that you should not invest more than you can afford to lose. Here are some of the things that can go wrong:

Rug Pull

This happens when project developers take all the funds from a pool and disappear with investors’ funds. Rug pulls can take place in several ways and are one of the most common scams in the crypto world.

The best way to avoid this is to do your homework, don’t invest in something you don’t understand, and exercise caution with an asset that rises sharply or promises high returns. Look for pools with good Total Value Locked, the size of the pool, and contract audit results. A well-established pool is usually safer than a new pool, but that should not be the only factor under consideration when making a decision.

Impermanent Loss

Impermanent loss is caused by volatility in a trading pair, and it results in a negative difference between tokens held in a liquidity pool and those held in a wallet.

Liquidity Risk

When prices fall, liquidity providers may withdraw their funds from the liquidity pool, rendering the pool illiquid. This affects users who are still staking or farming a particular asset as they are unable to convert it to stable coins or other assets.

Hacker Attacks

Perhaps the biggest risk in defi farming is from hacker attacks. Hackers exploit loopholes in smart contracts that allow them to access users’ funds. Millions of users have been affected by hacker attacks up to this point.

What does it mean to Reduce Slippage?

First, let’s look at what slippage is.

The ratio of tokens in a pool determines the price. So, if someone buys one token of a pair, the quantity of that token in the pool is reduced, raising the price. The amount of price movement depends on the size of the trade in proportion to the size of the pool.

The larger the pool is in comparison to the trade, the less the price impact of trading activity within the pool. This impact is known as slippage, and larger pools are better able to absorb it as they are less affected by big trades. High liquidity usually means lower slippage.

Benefit from Staking Pool Incentives

Some protocols offer additional rewards for supplying liquidity to certain pools, usually in the form of pool tokens issued to the liquidity provider. Naturally, doubly incentivized pools tend to attract more liquidity providers, so liquidity pools that offer extra rewards are often larger and therefore less subject to slippage.

Thus, it makes sense for Dexfolio to create partnerships with other entities such as Wizard so that we can work together to reap the rewards of our shared resources. Collaboration is the only way to grow fast and form a strong, healthy asset base with high liquidity that is less prone to problems such as slippage.

Tokens You can use on Wizard

You can use DEXF tokens on Wizard, of course, and Wizard’s own token, $WIZARD. Other tokens include any that can be used on Pancakeswap, Babyswap, Cafeswap, and Waultswap.

Wizard also has some exciting NFT projects on the go, giving users further opportunities in this space.

What other Staking Options does Dexfolio Offer?

In addition to the partnership with Wizard, Dexfolio currently offers LP Staking on our dApp, app.dexfolio.org, where users can stake DEXF-BNB Lp tokens, Ethereum, BNB and Busd to earn DEXF as reward at the end of a lock period they choose; and we currently have a promotion ongoing, to give free PRO access forever in our first-of-its-kind crypto tracking portfolio app to the first 50 people to stake 100 Lp tokens for 104 weeks.

This partnership with wizard is a good opportunity for our community members to benefit from the magic that Wizard brings to the table.

Pool Link: https://app.wizard.financial/pools

Wizard Links:

Dexfolio Links:

Website: dexfolio.org
Telegram: t.me/dexfolioChat
Twitter: @DexfolioApp