What are Token Rewards?
Learn about AERO and CAKE staking rewards you can earn on MaxFi.
Key Takeaways
- Aerodrome pools earn AERO token rewards on top of trading fees
- PancakeSwap pools earn CAKE token rewards on top of trading fees
- MaxFi handles staking automatically so you earn both fees and rewards
Two Ways to Earn
On MaxFi, some pools let you earn in two ways:
- Trading fees: From every swap in your pool (all pools have this)
- Token rewards: Extra tokens given to liquidity providers (some pools)
Token rewards are like a bonus on top of your regular fees.
Aerodrome Rewards (AERO)
Aerodrome is the largest DEX on Base. It gives AERO tokens to liquidity providers who stake their positions.
When you deposit into an Aerodrome pool on MaxFi, your position can be staked automatically. You earn:
- Trading fees from every swap
- AERO tokens as a bonus reward
AERO has real value. You can sell it, hold it, or use it elsewhere.
PancakeSwap Rewards (CAKE)
PancakeSwap works similarly. It gives CAKE tokens to staked liquidity providers.
When you deposit into a PancakeSwap pool on MaxFi, you can earn:
- Trading fees from every swap
- CAKE tokens as a bonus reward
Uniswap V3 Pools
Uniswap V3 pools on MaxFi earn trading fees only. There are no extra token rewards.
This does not mean Uniswap pools earn less overall. Some Uniswap pools have very high trading volume, which means high fee income.
How MaxFi Handles Rewards
MaxFi manages staking for you. When you deposit into an Aerodrome or PancakeSwap pool, MaxFi handles the staking process.
You do not need to stake manually. You do not need to claim rewards separately. MaxFi collects everything when you harvest.
Choosing Between Pools
When comparing pools, look at total return: fees plus rewards.
A pool with lower trading fees but high token rewards might outperform a pool with high fees but no rewards. The backtest tool shows total returns including rewards.
What You Learned
- Aerodrome pools earn AERO token rewards on top of trading fees
- PancakeSwap pools earn CAKE token rewards on top of trading fees
- MaxFi handles staking automatically so you earn everything