Despite the fact that Q2 of 2022 was among the worst quarters for the cryptocurrency market and investment sector as a whole, Cake DeFi, a Singapore-based crypto-finance company, experienced its highest quarter ever in terms of user growth, funded accounts, and payouts. Cake DeFi has distributed $58 million in incentives to its members during the second quarter, bringing the total rewards distributed by the company since its start to $375 million.
Cake DeFi, in contrast to its rivals, has maintained positive cash flow and continues to fill open positions. Even in the highly improbable scenario in which all revenue was completely lost, the company has sufficient funds in its treasury to last for at least four years. Cake DeFi’s average weekly user increase in the second quarter was 3.25%. The firm is constantly working to enhance the quality of its customer experience. It was also very helpful to switch to an automated KYC system with approval times of no more than three minutes and improve the user experience on the company’s mobile app.
In light of the robust financial position of the company, the Cake DeFi Board has made the decision to further diversify the company’s treasury. To this end, the board will make a public investment of 15 million dUSD into various decentralized assets, including dTSLA, dTLT, and a few others. In addition, given the extent to which prices have fallen on the broader market, this may offer substantial upside potential. Cake DeFi will make this information public, allowing everyone to track this development.
The Cake DeFi Essentials
Cake DeFi is a finance platform that is completely open, incredibly innovative, and regulated with the goal of giving users access to decentralized financial services and applications by letting them profit from their crypto and digital assets. It is based in Singapore, where it is both operated and registered, and it complies in every respect with the Monetary Authority of Singapore’s (MAS) regulatory requirements.
It presently possesses an exemption under the Payment Services (Exemption for Specified Period) Regulations 2019, which was granted to it by the MAS. This exemption enables it to remain operational in and from Singapore while the MAS processes its license application to undertake digital payment token services. The exemption is valid until the end of the specified period. The company is a compliant FATF fintech platform with solid financials. In addition, it just joined the Coinbase TRUST to adhere to the Travel Rule regulations while ensuring consumer security and privacy.
In addition, Cake DeFi has obtained a cryptocurrency license from the Lithuanian Registrar of Legal Entities. It grants permission for the platform to offer services in Lithuania including the trading of cryptocurrencies, the provision of cryptocurrency custodial wallets, and the administration of those wallets. This will enable Cake DeFi’s registration and authorization in additional European Economic Area (EEA) member states. In 2024, the EU Markets in Crypto-assets (MiCA) framework will offer passporting rights to crypto licensees that comply with the framework’s requirements.
The platform has been generating positive cash flow and has a runway of at least four years to continue operations. It maintains unambiguous asset segregation as a Singapore-based fintech company, which means that the company’s operating accounts and the assets of its customers are kept separate from one another. It implies that users have complete ownership and management over their funds. Cake DeFi only operates as an agent or middleman for the services that it provides, offering consumers “safe passage” or access to decentralized financial (DeFi) services: these offerings are all on the DeFiChain blockchain and are completely visible and accessible to everyone.
Users can potentially conduct such transactions on the network independently. Cake DeFi provides a centralized platform where users may access all of these services with consumer and community assistance. In sharp contrast to these other CeFi systems, such as Celsius, which has a restricted amount of transparency and can be compared to a “black box,” this platform has a high degree of openness. As a result, users would not have clarity or knowledge regarding issues such as the source of yields or, worse, whether their money is mixed with operating funds.
Cake DeFi was established in 2019 and has one million users from all around the world. In 2021, its user base expanded tenfold. Cake DeFi has handed out $375 million in prizes to its subscribers since its launch through the second quarter of 2022. Cake manages over a billion dollars in client assets. At the beginning of this year, Cake DeFi also launched a venture capital arm known as Cake DeFi Ventures with a funding pool of $100 million. This arm will invest in start-up businesses in the areas of Web 3, eSports, gaming, and Fintech.
Cake DeFi’s All-Inclusive Products And Solutions
Cake DeFi provides three essential services: Liquidity Mining, Lending, and Staking. Freezer and Borrow, which were just released a short while ago, are the company’s two more offerings. Consumers are provided with an easy entry point that is safe and secure to a variety of DeFi services, including staking, lending, borrowing, and liquidity mining, as a result of the creation of this platform. The Cake DeFi platform is accessible via the website and mobile applications for Android and iOS. The same services and functionalities are accessible via both interfaces.
Cake DeFi only makes money if its users also make money; the more money its users make, the more money Cake makes as well through commissions on the prizes those users get. Users earn incentives twice per day as opposed to waiting weeks or months. All of the solutions are designed to be beginner-friendly. Therefore, Cake DeFi is the ideal all-in-one solution for users’ crypto investing needs, even if they’re new to DeFi. Either via integrated partners or by transferring their own cryptocurrency to Cake, users can begin collecting passive revenue.
Users are given the opportunity to contribute to the security of blockchains and receive incentives through the Staking product. Users can earn an annual percentage yield (APY) of up to 28.5% by staking DeFiChain’s native token, DFI, as well as DASH tokens in completely transparent masternode pools on Cake. Users are not required to set up a masternode, drastically reducing the entry barriers for cryptocurrency staking.
Users have the ability to supply liquidity on a decentralized exchange through the use of Cake DeFi, which will allow them to earn annual returns of up to 45.4%. These trades will take place between two separate token pairs. Users will be able to view all of the Liquidity Mining pairings on this page. Alternatively, the Borrow function enables users to borrow Decentralized USD (DUSD) generated on the DeFiChain blockchain by simply providing Bitcoin, Ethereum, Tether, USDC, and DFI as collateral.
Decentralized Assets For Additional Rewards
Users of Cake DeFi have the ability to mine for liquidity using their decentralized assets, which enables them to receive additional incentives. Decentralized assets, also known as dTokens, are issued on the DeFiChain network. These are blockchain-based tokens aiming to approximate the pricing of actual stocks. On the Cake DeFi platform, users have the ability to trade decentralized tokens that partially mirror the prices of major stocks such as Apple, Tesla, Intel, the S&P 500, and dozens more. In addition, users can invest dTokens in liquidity mining to obtain further incentives.
Users of decentralized assets receive price exposure, but not ownership, voting rights, dividends, or any of the other perks that are accessible to stockholders. This is because decentralized assets are not “securities” that are issued by a firm or other major institution. Instead of monitoring and mirroring the actual stock price, dTokens track and reflect a variety of variable parameters that generally resemble the stock price, and employ oracles to record those feeds. Due to fluctuations in dToken supply and demand, the value of dTokens may not always correspond to the value of the underlying asset.
On the other hand, dTokens are not just produced out of thin air. In order for users to mint a dToken, they need to make a collateral deposit in the DeFiChain Vault in the form of either BTC, DFI, DUSD, USDT, or USDC. They are always at least 150% overcollateralized. By minting or purchasing the required dTokens, millions of people from over the world who could not invest in US stocks due to territorial restrictions, trading limits, or other difficulties may have price exposure to their favored assets.
Users of Cake are given the opportunity to participate in the mining of liquidity using decentralized assets. In this manner, users not only gain financially from the rise in the value of the asset but also obtain liquidity mining incentives. Users have the ability to deposit the decentralized asset pairings into the appropriate pools in order to receive attractive liquidity mining rewards.
