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Cake DeFi: A Quick Overview

Cryptocurrency Aug 16, 2022 09:31AM ET
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Cake DeFi: A Quick Overview
 
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Talking Points

  • Cake DeFi, a Singapore-based cryptofinance platform, has just released its Q2 Transparency Report, shedding light on the progress it made during the quarter.
  • Even though Q2 of 2022 has been one of the worst quarters for the cryptocurrency industry and entire investment sector, Cake DeFi has seen its strongest quarter yet when it comes to customer growth, funded accounts and payouts!
  • Average weekly user growth in Q2: 3.25%
  • During the second quarter, Cake DeFi paid out US$58M in rewards to its users, taking the total payout since inception to US$375M.
  • Unlike its competitors — Cake is still cash flow positive and still hiring people. Even in the unlikely event that revenue would dry up completely, its treasury provides for at least 4 years of runway.
  • Cake continues to improve the user experience. Switching to an automated KYC system with 3-minute approval times and improving the user experience in its mobile app also helped greatly.
  • Building on the company’s financial strength, the Cake DeFi Board has decided to diversify its treasury even further, and it will be publicly investing 15 million dUSD into decentralized assets such as dTSLA, dTLT, and a few others. Also, considering how far prices have dropped in the general markets, this may provide great potential upside. Cake will make this completely public, so people can actually monitor this progress.
About Cake DeFi
  • Cake DeFi is a fully transparent, highly innovative and regulated fintech platform dedicated to providing access to decentralized financial services and applications by enabling users to generate returns from their crypto and digital assets. It is operated and registered in Singapore and is fully compliant with all regulatory requirements of the Monetary Authority of Singapore (MAS).

  • It currently holds an exemption under the Payment Services (Exemption for Specified Period) Regulations 2019 granted by the MAS which allows it to continue operating in and from Singapore while the MAS is processing its license application to conduct digital payment token services.
  • Cake is an FATF compliant fintech platform with strong financials. It also recently became a member of the Coinbase (NASDAQ:COIN) TRUST to comply with the Travel Rule requirements while protecting the security and privacy of customers
  • Cake DeFi has received a cryptocurrency license from the Registrar of Legal Entities of Lithuania. It authorizes the platform to conduct services for exchanging cryptocurrency, and providing and administering cryptocurrency custodial wallets in Lithuania. This will facilitate Cake’s cryptocurrency registration and authorisation in other European Economic Area (EEA) member states and for future conversion into an EU-wide cryptocurrency authorisation when the EU Markets in Crypto-assets (MiCA) Regulations become effective. Set to go into effect in 2024, the MiCA framework will grant passporting rights for crypto licenses that fulfill the terms of the framework.
  • The platform has been cashflow positive with a runway of at least four years. As a Singapore-based fintech company, it ensures clear asset segregation whereby customers’ assets are kept separate from the company’s operating accounts. It means users have full control, full ownership and full authority over their funds. Cake DeFi simply acts as an agent or an intermediary for the services that it provides, giving users a “safe passage” or access to decentralized finance (DeFi) services: these services are all on the DeFiChain blockchain and are fully accessible to anyone and fully transparent. Technically, customers can make such transactions on the blockchain themselves. What Cake DeFi offers is a one-stop-platform where people can access all these services at a single point with customer and community support. This is in stark contrast to other CeFi platforms such as Celsius- which can arguably be likened to a “black box” with limited transparency. As such, users wouldn’t have clarity or information on things like where the yields are being derived from or – worse – if their funds are being commingled with operational funds.
  • Founded in 2019, Cake has a million users from around the world. Its user base grew 10x in 2021. Since its inception, Cake DeFi has paid out $375 million in rewards to its users through Q2, 2022. Cake has over a billion dollars managed in customer assets.
  • Earlier this year, Cake DeFi also launched a $100 million venture capital arm called Cake DeFi Ventures to invest in start-ups in the Web3, eSports, gaming and Fintech spaces.
Products
  • You can find an in-depth overview of the products here: https://blog.cakedefi.com/cakedefiinfoguide/

  • Cake DeFi offers three key products: Liquidity Mining, Lending, and Staking. The other two products are Freezer and the recently-launched Borrow. It creates a safe and secure one-stop platform for consumers to easily access DeFi services such as staking, lending, borrowing, and liquidity mining. For a deep dive into products, visit this page.
  • Users can access the Cake DeFi platform through the website and the mobile application on Android and iOS. Both interfaces provide access to the same products and features.
  • Cake makes money only when its customers earn money as well –– the more they earn, the more it earns as well via commissions on their rewards. Users receive rewards twice a day rather than having to wait for weeks or months.
  • All the products are designed for a noob-friendly experience.As such, Cake DeFi is the perfect one-stop-platform for your crypto investment needs, even if you are just getting started in DeFi. Users can either swap via integrated partners or transfer their own crypto onto Cake to start generating passive income.
  • Staking: The Staking product allows users to help secure blockchains and earn rewards. You can stake DFI (DeFiChain’s native token) and DASH tokens in fully transparent masternode pools on Cake to earn an APY of up to 28.5%. Users don’t need to set up a masternode themselves, significantly lowering the barriers to entry for crypto staking.
  • Liquidity Mining: You can provide liquidity in a decentralized exchange to enable trades between two different token pairs to earn annual returns of up to 45.4%. You can see all the Liquidity Mining pairs here.
  • Borrow: Allows users to borrow Decentralized USD (DUSD) minted on DeFiChain blockchain by simply adding Bitcoin, Ethereum, Tether, USDC and DFI as collateral. You can pledge a combination of these assets, provided 50% of the entire collateral is in the form of DFI token. Use the borrowed tokens to earn attractive rewards via staking, lending, and liquidity mining. It reduces the sell pressure because the borrowed DUSD can be used to purchase items or invest in products that generate passive income. You don’t have to sell your BTC, ETH, etc. to access liquidity. Moreover, CakeDeFi lets you convert the borrowed DUSD to USDC and DFI for free.
  • Lending: Cake lets you lend your cryptocurrencies like Bitcoin, Ethereum, USDT, USDC and others at up to 6.5% APY.
  • Freezer: It locks up the allocated funds for 2x the rewards, for up to 10 years. It rewards long-term platform supporters and incentivizes users to remain part of the CakeDeFi ecosystem.
Decentralized Assets When you visit the Liquidity Mining page on Cake’s website, you’ll see liquidity mining pools under the tab “Decentralized Assets.” That’s because Cake allows you to put your decentralized assets towards liquidity mining to earn additional rewards. But what are these decentralized assets? Allow me to explain:

  • The decentralized assets aka dTokens are minted on DeFiChain blockchain. These are tokens on the blockchain designed to mimic the prices of underlying stocks to a certain degree. On Cake DeFi, you can trade decentralized tokens partially mimicking the prices of Apple (NASDAQ:AAPL), Tesla (NASDAQ:TSLA), Intel (NASDAQ:INTC), S&P500, and dozens of other popular stocks. And you can deposit the dTokens into liquidity mining to earn additional rewards.
  • Decentralized assets are not “securities” issued by a company or a large institution, meaning they give users price exposure but not ownership, voting rights, dividends, or other benefits available to stockholders.
  • Rather than tracking and reflecting the actual stock price, the dTokens track and reflect a number of variable factors to closely follow the stock price, and use oracles to capture those feeds. The price of dTokens may not always mirror the underlying asset’s price because of fluctuations in the supply and demand of dTokens.
  • No, the dTokens are not created out of thin air. If you want to mint a dToken, you have to deposit BTC, DFI, DUSD, USDT or USDC as collateral in the DeFiChain Vault. They are always overcollateralized by at least 150%.
  • Minting is not the only way to own decentralized assets. Users can also buy dTokens – even in fractional pieces – on the DeFiChain DEX and then put them towards liquidity mining on Cake DeFi for additional passive income. All dTokens are freely denumerable (meaning you can buy or sell fractional pieces of the dTokens) and can be transferred to other people worldwide without involving an intermediary.
  • Millions of users from around the world who couldn’t invest in the US stocks due to geographical restrictions, trading limits, and other issues could get price exposure to their favorite assets by minting or buying the relevant dTokens. For more details on decentralized assets, visit: One, Two
  • Cake allows you to participate in liquidity mining with decentralized assets. That way, you not only profit from the rising price of the asset but also receive liquidity mining rewards. Cake has over a dozen liquidity pools such as dTSLA-DUSD, dQQQ-DUSD, dGME-DUSD and many more. Users can deposit the decentralized asset pairs in the respective pools to earn lucrative liquidity mining rewards.
Co-founders Dr. Julian Hosp

Dr. Julian Hosp is the CEO and Co-Founder of Cake DeFi. Dr. Hosp is widely regarded as a leading influencer in the crypto space, with over one million followers across all of his channels globally. His ideas, knowledge and influence have been conveyed in numerous articles, and through keynote engagements at industry leading conferences. As well as being credited as a leading authority in the crypto and blockchain space, an active speaker for the Washington Speaker’s Bureau, an advisor for the EU’s blockchain groups and managing multiple businesses in the vertical, he is also a best-selling author having written Cryptocurrencies Simply Explained and Blockchain 2.0 – Far More Than Just Bitcoin. His vision is to bring blockchain awareness and understanding to a billion more people by 2025. You can find a large collection of his articles here: https://julianhosp.com/blog/

  • Official website: www.julianhosp.com
  • LinkedIn: www.linkedin.com/in/julianhosp/
  • YouTube (185K subscribers): www.youtube.com/user/julianhosp
  • Twitter (NYSE:TWTR) (55K followers): www.twitter.com/julianhosp
  • Instagram (30K followers): www.instagram.com/julianhosp/
Prior to being an entrepreneur, he was a former professional athlete and worked as a medical doctor. Today, he lives in Singapore with his wife and son.

U-Zyn Chua:

U-Zyn is the Director and CTO of the DeFiChain Foundation, Co-founder of Cake DeFi, and Chief Engineer of Zynesis, where he serves as a blockchain adviser to the Singapore Government. One of U-Zyn’s projects – NZIA, made global headlines by creating the first Central Bank Digital Currency, when the Bahamas launched the Sand Dollar:

  • Involved in Bitcoin since 2010, fully involved in the blockchain space ever since.
  • Invested in Bitcoin through OTC trades on IRC (2010)
  • Participated in Bitcoin mining (2011)
  • Started one of the first Bitcoin exchanges (Dgtmkt) in Asia (2011)
  • Contributed to the technical ecosystem of Bitcoin, Ethereum and Dash.
  • The first Singapore Smart Nation Fellow under Singapore GovTech. Worked on a decentralized procurement system for smart homes and offices.
  • Highly passionate in decentralized systems design and development.
  • Adviser to the Singapore Government on blockchain technology through his consulting company Zynesis
  • Created world’s first CBDC for The Bahamas, the Sand Dollar , via his company NZIA

Continue reading on DailyCoin

Cake DeFi: A Quick Overview
 

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