Singapore-based decentralized finance (DeFi) solutions provider, Cake DeFi has been on an ambitious development flight over recent months and has sought to allay any fears its user community may have over market-wide issues.
Customers of Cake DeFi have been reassured by the company’s management in the wake of Monday’s crypto market fall, which decimated a number of projects and the revelation of yet another troubled cryptocurrency platform. According to a statement released on Monday, the platform’s activities remain unaffected by present market conditions or the problems of rival companies.
Why Does Cake DeFi Want To Assure The User Community?
A simplified version of the tragic situation is that two supposedly competent crypto initiatives faced some serious issues and halts less than a month apart. Initially, a depegging UST caused LUNA to collapse. As LUNA collapsed in May, it impacted the overall crypto market.
Similarly, just a few days ago, Celsius Network, a cryptocurrency lending behemoth that appeared poised to make even larger leaps, appears to be struggling. The warning bells have been screaming for some time, but on Sunday, the platform said it was indefinitely suspending all crypto withdrawals, exchanges, and swaps. As the Terra LUNA controversy has not yet been resolved, the community is understandably scared. Indeed, speculations abound that Celsius is on the edge of bankruptcy.
Cake DeFi Asserts It Is Fully Transparent Compared To Celsius & Others
In connection with ecosystem happenings, Cake DeFi asserts that they are neither Celsius Network nor perhaps other centralized finance (CeFi) service providers. In addition, the platform’s transparency and unambiguous distinction of company and user assets distinguish them.
In contrast to several “black box” competitors in the market, Cake DeFi users have access to all the information and details required to ensure the security of their assets. This includes information regarding all transactions, dividends, and masternodes.
Different and Unique Business Model
The post went beyond reassuring. This demonstrated that the business style is distinct from Celsius.
The blog post reaffirmed, “as a Singapore-based fintech company, Cake DeFi needs to ensure clear segregation of assets, where client assets are segregated from business operating accounts. Simply put, our users have full control, ownership, and authority over their funds.”
That’s a big cry from Celsius, where the concept depended on the centralized corporation investing funds arbitrarily in the market, a technique that performed exceptionally well in 2020 and 2021 even as the bull market climbed but has since failed. And as a result of the surge in outflows, Celsius faces a dilemma because its liquid assets are insufficient to cover its liabilities.
Cake DeFi is entirely unique. In their own words, it provides customers with “safe access” or availability to DeFi solutions: these solutions are all available on the network and are entirely transparent. Customers can technically make such transactions on the network independently. Cake DeFi provides a unified platform from which users may obtain all of these solutions, together with consumer and community assistance.
In sum, Cake DeFi users have absolute ownership, control, and power over their funds, according to the company’s blog post. It’s encouraging to see a project like Cake DeFi seek to reassure its members that all is well.
Considering the lack of clarity surrounding LUNA and Celsius, the addition of transparency may be appreciated. Despite the fact that many will debate whether this amount of transparency is sufficient, it is safe to conclude that it is a decent starting point and probably the admiration of the industry.