One of the main challenges that cryptocurrencies, as an investment have, is the difficulty in getting cashflow within processes, which are mostly limited to buy-and-sell transactions only. Cake DeFi has the mission to bring cash flow to cryptocurrencies, by allowing users to have access to an intuitive platform where they can have cashflow through both staking and lending transactions.
How Does Cake DeFi Work?
Cake DeFi is a DeFi platform that works to cashflow cryptocurrencies transparently.
Cake’s ecosystem creates a more profitable environment around cryptocurrencies, as it works similarly to what other markets would do, such as real-estate interesting stocks, where investors just buy assets and hold them, getting plenty of interest, dividends, and rental income.
The main product of the company right now is based on staking returns, using a unique consensus mechanism where people get cashflow from the consensus itself.
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For instance, users just need to buy crypto assets and stake them into the platform to get profitable returns, which can vary in a range of 5% to 30% (or even more, according to co-founder Julian Hosp).
The platform also has a lending service, called Lapis, where users can deposit their BTC or ETH assets to get cashflow their funds.
So far, users can earn returns by staking four cryptocurrency options, Dash (DASH), Zcoin (XZC), PIVX, and DeFi coin (DEFI). However, Cake’s team plans to list as many staking coins as possible.
On the other hand, Lapis lending services are available for Bitcoin (BTC) and Ethereum (ETH) only.
The platform employs a unique system with its’ own jargon. The service is available online on Pool by Cake, which is a staking service operated by Cake.
It works by running staking nodes for users, saving them from the obligation with system setups and technical issues, plus concerns with the administration as well. As the pool is called Cake, investors are called “bakers”. The coins investors used to stake in the pool are referred to as “slices”. Hence, all the bakers have to do is managing their slices.
Once converted to slices, it isn’t possible to directly deposit or withdraw the value in the form of crypto coins, but they can be sold for a coin to other investors.
Upgraded User Experience
The pool operates with full transparency, so users can personally verify the nodes and rewards. Cake has also a strong public relations policy, delivering recurrent transparency reports available on YouTube.
The user experience is quite simple, so no one needs to worry about advanced code or other technical stuff. Users are free to enter or leave the Pool by Cake whenever they wish, with no hard time for selling the slices.
As the staking system in the pool has a collective staking model, meaning users stake for all collective nodes for each coin (instead of staking for each node only), returns are steadier and more predictable, which contributes a lot for stability and recurrence.
Who is Behind the Project
Cake was established back in early 2019, by co-founders Dr. Julian Hosp (current CEO) and U-Zyn Chua (current CTO), both innovators with eclectic professional backgrounds.
Dr. Julian Hosp, as the name suggests, is an ex-medical doctor whose life had a turning point when he realizes his true passion was building innovative businesses. Then, he took part in several financial ventures as a serial entrepreneur. Eventually, he became a blockchain expert and decided to reunite efforts with his then work colleague U-Zyn Chua to impact the scene.
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On the other hand, Chua is a passionate pioneer in the crypto scene. His journey started back in 2010 when he first got into Bitcoin. He started mining BTC in the next year and then decided to start one of the first Bitcoin exchanges in Asia.
Also, he holds consistent technical contributions for different chain ecosystems, such as Bitcoin, Ethereum, and Dash.
Based in Singapore, the company managed to raise US$ 1.2 million in a successful seed round back in June 2019.
Final Words
Cake DeFi is one of those ideas that show how profitable decentralized finances are when approached with innovative solutions.
The platform aims to solve the cash flow issue associated with cryptocurrencies, by creating a more profitable environment around them, similarly to what happens with real-estate interesting stocks, for example. So far, they have two profitable services available.
In the first, investors can stake crypto assets in their Pool by Cake to receive interest. Investors are called bakers, and the coins locked into the pool to generate interest are called slices.
Also, there is Lapis, which is a lending service where users deposit their BTC or ETH to get cashflow over their crypto funds.
According to the team, they envision building a definitive one-stop platform where users can come in and access all blockchain assets, creating an enriching fund diversification and an automated profitable cashflow experience.