Cake DeFi 101: The Ultimate Guide

Since 2018, distributed ledger technology has seen a boom in DeFi (decentralised finance) industry. There have been numerous projects that have reimagined traditional financing, including Cake DeFi.

Among these projects, the idea of allowing investors to earn tremendous yields through crypto staking is quite popular. One leading platform in this regard is Cake DeFi - an innovative platform for investors that offers various services to generate passive income.

This guide will take a deeper look at its ecosystem and how it works. We will also explore how you can leverage its unique offerings!

Cake DeFi: A quick overview

Cake DeFi is a rapidly expanding project that makes services relating to decentralised finance more accessible. It is a Singapore-based fintech firm that was founded in 2019. Popular crypto influencers Julian Hosp and U-Zyn Chua founded the firm intending to promote cryptocurrency usage. Being a Singapore-based firm, it complies with the crypto regulations of the Monetary Authority of Singapore (MAS). Besides, it claims to be a transparent firm that allows investors to gain high returns. It has its DApp, through which you can avail of various income-generating offerings. Its primary offerings include staking, liquidity mining, and lending. Meanwhile, services like Cake Freezer and investment options in decentralised assets also exist.

How does the platform work?

Though it is named a decentralised finance platform, it operates as a custodial portal. Its ecosystem is built on the Chain blockchain, which allows seamless trading. Also, the native token of the Chain, DFI, is used for distributing incentives and rewards. Moreover, it works on the Proof-of-Stake (PoS) consensus mechanism for generating new blocks. It allows better throughput and is more energy-efficient than Proof-of-Work (PoW).

The platform gives you a variety of financial products to assist you in investing. Moreover, it also supports various digital assets, so you get numerous options.

How to use Cake DeFi?

Let’s look at how you can use Cake DeFi’s services:

1. Staking

In the PoS ecosystem, you can stake tokens in nodes to validate transactions. The Cake also offers this service, and here you have two options for staking. The first is the native token, DFI, and the second is the DASH token. Against these two, you can earn profits.

2. Liquidity mining

Liquidity mining pools are another option through which you can generate yields. You have to pick a pair of cryptocurrencies with DFIs and enter your preferred amount. It may give you an upward of up to 68%. Also, there is no complicated procedure for collecting rewards, as they will be directly transferred to your wallet.

3. Lending

You can further boost your cash flows through its lending feature. It includes lending of Bitcoin, Ethereum, USDC, and USDT. It offers a risk-free and transparent procedure through which you can gain lucrative bonuses.

To earn profits, you have to deposit the supported cryptocurrencies. These assets are locked on the platform for about a month and divided into lending batches. One batch ends in 28 days, from Friday to Friday. After this period ends, you can continue with the next batch or withdraw your returns.

4. Asset freezing

Its asset freezing is another option to get higher returns. You have to lock your desired DFI tokens for at least a month. Against this amount, the platform generates yields, giving you a regular cash flow. Also, through this, you can get a markdown of up to 85% on fees.

5. Investment in assets

Lastly, you can also invest in various decentralised assets on this platform. These are referred to as dTokens, and you can mint them on the Chain network. These assets are unique as their prices are related to real-world possessions like stocks.

Final take

Cake DeFi appears to be one of the most secure and transparent platforms. It offers various financial products through which you can maximise your yields. Its staking, liquidity mining, and crypto lending features can generate regular cash flow. Also, you can invest in real-world assets through this platform.