Vee Finance, a decentralized finance platform, has officially confirmed its hack on Avalanche. On September 20, the hacker managed to transfer funds worth $35 million. In terms of assets, it was 8804.7 ETH (around $26 million) and 213.93 BTC (around $9 million). According to the report, the stablecoin was left untouched. As for the hacker, the report confirms that they have not yet transferred or processed the funds. The team is working to provide more details of the incident. Further,…
The blockchain-based lending platform Cake DeFi continues to gain traction in the crypto sector. This next-generation protocol combines the best elements of DeFi with the familiarity of centralized systems. As such, Cake DeFi allows anyone to stake their crypto and start earning passive income easily. Today, the platform is best known for its user-friendly interface and its commitment to transparency.
Since its inception, Cake DeFi captured the attention of the market. This platform encapsulates the DeFi movement in every way. Its transparent and open nature makes it the ideal lending platform for the digital economy. Additionally, the founders of the company are pioneers within the industry.
History of Cake DeFi
Cake DeFi went from a concept to reality in early 2019. At this time, two advantageous developers named Dr. Julian Hosp and U-Zyn Chua proposed their concept to the community. The plan immediately garnered attention because the firm’s CEO, Hosp, is an internationally recognized expert in blockchain. Interestingly, he is also a medical doctor.
Cake’s second co-founder is also a long time Bitcoiner, U-Zyn Chua. Chua was one of the earliest developers to contribute to the sector. Specifically, he contributed code to some of the biggest projects in crypto, including Bitcoin, Ethereum, and Dash.
How Does Cake DeFi Work?
Cake DeFi functions as both a staking and a transparent lending protocol. The system’s developers sought to eliminate the main roadblocks encountered by people who seek to obtain passive income and build wealth. To accomplish this task, Cake DeFi employed some unique functionalities.
Cake DeFi’s main draw is its transparent lending system. This system allows anyone from anywhere in the world to start earning passive income on their crypto. Even more impressive, the platform consistently ranks amongst the highest yields in the industry. Currently, users can earn passive income using Bitcoin and Ethereum.
In the Cake DeFi ecosystem, you lock your crypto up for four week periods. During this time, you earn interest. Impressively, the platform offers an annual percentage yield (APY) of up to 10.5% APY for Ethereum and 11.5% APY for Bitcoin.
To start earning passive income, you need to register with Cake DeFi. The process is straightforward, simple, and free. Once you register your account and clear KYC, you can start lending immediately.
In August 2020, Cake announced a new upgrade to its lending protocol – Cake LAPIS. As part of the strategy, the platform secured strategic partnerships with Signum Capital and Sparrow. Together, this trio brings risk-free, high-yield lending to the crypto industry.
The maneuver was critical because up to this time, Cake Lapis functioned without a guarantor. Thankfully, the transparent nature of the protocol allowed for such a move. Keenly, you also get a guarantee against losses. Specifically, the upgrade secures:
- 5% on BTC + 4% on DFI
- 4% on ETH + 4% on DFI
Notably, developers chose to supplement the guarantor’s fee with DFI tokens to ensure you maintain the average profit margins for both ETH and BTC. Crucially, if the price of your locked up crypto goes up more than 20% during your holding period, Cake provides you with a bonus. This means the maximum earning is raised to 11.5% APY for BTC and 10.5% APY for ETH
Cake DeFi offers staking services through their masternode pools. Staking is a way in which blockchains can secure their network.
The Cake DeFi ecosystem allows you to purchase slices of your favorite DeFi projects. Currently, you can access DeFiChain (DFI), Dash, ZCoin, and PIVX. All of these tokens provide respectable Proof-of-Stake (PoS) rewards. At the time of publication, users are earning 60% APR on Cake’s DeFiChain DFI Pool. Users staking the DFI token receive block rewards every 30+ seconds.
The best part is that Cake DeFi has no minimum purchase requirement. Also, the platform utilizes automated processes for real-time compounding and no minimum lock-up periods for staking. This way, users never have to wait for rewards.
At the core of Cake, DeFi’s monumental strategy is a desire to remain fully transparent. As such, the platform publishes information on every lending batch. This information includes vital data such as each lending batch’s trade positions, premiums, expiry dates, and settlement prices.
You can also see the total amount of crypto earned by stakers via the Rewards section of the interface. Here you can discover information such as the exact transaction ID and node address of your staked crypto in real-time. You are never out of the loop.
Cake DeFi Future
As if removing risk from lending wasn’t enough, these advantageous developers have a host of other protocol upgrades scheduled for the remainder of the year. According to company documents, the platform will offer a VIP lending section known as the Freezer System. These exclusive participants receive higher rewards on their crypto.
Another exciting development in the works is a fiat gateway. Once Cake DeFi receives regulatory approval to offer fiat to crypto trading, it intends to make some significant changes. For one, a host of new functionalities will become available. These features include options such as savings plans and other traditional financial services.
Take the Cake!
Revolutionary lending platforms such as Cake DeFi continue to push the boundaries of what is possible in the market. It’s impressive to see a development team so dedicated to transparency. Just this fact alone puts Cake DeFi ahead of the competition, let alone the risk of free lending. You can expect to hear more from this team as the benefits of their platform become more known. We’re looking forward to Cake Defi’s bright future!
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