Cake DeFi is an innovative crypto yield-farming and investment platform that gives users various options for growing their crypto portfolio through DeFi services.
The platform has some of the broadest choices for earning crypto rewards with your existing assets and even works as a crypto lending service.
Let’s find out what makes Cake DeFi a good choice for DeFi services and what are the platform’s key features.
Pros & Cons of Cake DeFi
Pros
- A wide selection of yield-farming, liquidity-mining, and crypto-staking features.
- High rewards across all Cake DeFi services.
- Some Cake DeFi services pay out rewards every 12 hours, which is much faster than many competitors.
- Fiat-friendly platform that allows users to invest cash without connecting their crypto wallet.
- Highly secure. All funds are stored on cold storage devices.
- Crypto lending feature.
- Very transparent operating mechanism.
Cons
- The selection of available cryptocurrencies might be small for experienced crypto enthusiasts.
- Depending on which service you choose, a portion of the rewards is paid in DFI, which is a volatile crypto.
- The CakeDeFi Earn section isn’t available for US customers.
About Cake DeFi
Cake DeFi is a Singapore-based platform with various high-yield crypto investment features. The platform was launched as a partnership venture with DeFiChain (DFI) in 2019. It relies on the DFI token for a portion of its liquidity and the DeFi rewards paid out to users.
The platform is a result of developer aspirations to create a secure, high-yield DeFi platform that can realistically support high rewards in a crypto market filled with scam projects that offer high returns but then just suddenly shut down their operations. Cake DeFi has been successfully operating since 2019 and has introduced various DeFi features over the years.
More than one million people worldwide are using Cake DeFi to grow their portfolio, and the platform claims to have paid out over 400 million USD worth of crypto rewards to their users. Additionally, Cake DeFi’s cold storage vaults have more than one billion USD of assets deposited across the different services offered by the platform.
The main reason why Cake DeFi is popular is that it offers high returns that are realistic and sustained by the platform’s high liquidity. The platform enables users to yield farm through crypto staking and liquidity mining, the two essential services offered by Cake DeFi. Also, the Freezer service allows users to earn even more rewards through an innovative share-locking mechanism.
Cake DeFi is also a crypto lending platform where you can lend your assets and earn guaranteed returns or take out a crypto-collateralized loan.
Finally, unlike many DeFi platforms that work exclusively with crypto, Cake DeFi lets users purchase crypto through the platform with a payment card and easily convert fiat currency to digital coins and tokens.
Crypto Coins Available on Cake DeFi
Cake DeFi users can invest in different cryptocurrencies across various platform services, but not all currencies are available in every segment of the platform.
For example, the Staking section of Cake DeFi supports Polygon (MATIC), Dash (DASH), Ethereum (ETH), and DeFiChain (DFI).
If you navigate to the Liquidity Mining section, you’ll be able to choose among seven liquidity pools for Tether (USDT), USD Coin (USDC), Bitcoin (BTC), Dogecoin (DOGE), ETH, Litecoin (LTC), and Bitcoin Cash (BCH). Each of these cryptos is paired with DFI in a liquidity pool, and users earn both DFI and the other crypto as liquidity mining rewards.
Additionally, users have around 20 decentralized crypto assets at their disposal in the liquidity mining section. These assets have a D at the beginning of their symbol and include cryptos like PDBC Defichain (DPDBC), Amazon Tokenized Stock Defichain (DAMZN), Alibaba Tokenized Stock Defichain (DBABA), and others.
Basically, some of these assets provide users with exposure to company stocks through crypto tokens. The other currency in decentralized asset liquidity pools is always Decentralized USD (DUSD).
The Lending and Borrowing features support BTC, USDT, USDC, and ETH.
Fiat Currencies Supported on Cake DeFi
Users can purchase crypto on Cake DeFi with USD or EUR bank transfers through SWIFT or SEPA transactions. These are the two fiat currencies directly supported by Cake DeFi, but you can actually purchase crypto with most global fiat currencies if you use a bank card such as a Visa or Mastercard card.
Cake DeFi has a partnership with the Banxa and Transak fiat-to-crypto payment services, which process bank card payments and can convert most fiat currencies to crypto. However, you must select EUR or USD as the intermediary currency when purchasing with a bank card.
Countries Supported on Cake DeFi
Cake DeFi is available in the European Union, all US states except New York, Australia, and most parts of South America, Asia, and Africa. The platform doesn’t provide services in Russia, Syria, Albania, Venezuela, Indonesia, and several other regions.
It’s important to note that the Cake DeFi Earn mobile service isn’t available in the US.
Cake DeFi Fees
Cake DeFi charges variable fees for its different services. For example, if you want to lend crypto and earn an interest rate, the platform won’t charge you any fees, but if you want to take out a loan from Cake DeFi, you’ll incur a 0.5% loan origination fee, and your collateral for taking out a loan is 200% of the loan amount. Also, 50% of your collateral must be in DFI tokens.
As for staking, the platform deducts a 15% fee from your rewards. This means that when you get your rewards every 12 hours, Cake DeFi takes a 15% portion. The thing is that staking rewards are generated by independent network nodes in the Cake DeFi ecosystem instead of the platform directly. That’s how the platform doesn’t directly charge you a fee. Instead, you get 15% fewer rewards. Node operators also incur a fixed 10 USD monthly fee.
You can also swap the various currencies available on Cake DeFi for a 0.5% fee, which isn’t very low but isn’t very high either.
There aren’t any fees for using the liquidity mining service because you’re contributing to Cake DeFi’s operating mechanism and are eligible for rewards instead.
Main Features of Cake DeFi
Cake DeFi is a one-stop shop for essential DeFi services, so let’s start at the beginning.
Yield farming is the platform’s key feature, and it comes in several forms. The staking service allows you to simply stake crypto and contribute to the work of Cake DeFi’s network nodes. Yields range from 4.6% for ETH to 14.3% for DFI staking.
Next up is yield farming through liquidity mining, where users provide liquidity to various asset pools and, in turn, receive rewards. You can join a classic liquidity pool with different cryptos and DFI tokens as pool pairs or a pool with decentralized DeFiChain assets, such as tokenized stocks from prominent companies like Amazon, Nvidia, and Alibaba. There are also some pools with stablecoins and DeFiChain’s DUSD coin.
Standard crypto pools yield rewards from 5.56% for DOGE-DFI to 16.83% for the USDC-DFI pool. Decentralized asset pool yields start from 5.96% for dGLD-DUSD and go up to 19.69% for the USDC-DUSD pool.
Also, users can grow their asset portfolio with the Freezer feature by locking up assets from the staking or liquidity mining section for anywhere between one month to 10 years. Depending on the lockup length, users can earn 1.5x or 2x of their initial annual percentage yield (APY).
CakeDeFi also allows users to lend and borrow assets. The lending feature lets users provide Cake DeFi with assets for lending to borrowers, and they get guaranteed paybacks of their interest plus the loan principal. Borrowers can take out a loan by depositing 200% crypto collateral and pay it back at their own pace.
Additionally, Cake DeFi has a Transparency section where users can view the proof of reserves of the platform and a blockchain record of all transactions on Cake DeFi. Finally, every user can verify their asset balance on Cake DeFi and get proof that the platform really keeps the assets. This feature is essential for assuring users that their funds aren’t being used for anything except the Cake DeFi services they use.
How Easy Is It to Open a Cake DeFi Account?
Cake DeFi is dedicated to preventing illegal activities such as money laundering, and because of this, it requires users to verify their identity during account creation.
- To start using Cake DeFi, click on Sing Up to choose your password and provide your email address.
- Enter the confirmation code from Cake DeFi’s email sent to your provided address.
- Now you’ll go through a similar procedure to verify your phone number.
- Specify your country and choose whether you want to prove your identity with your ID card or passport.
- You need to take a clear photograph of the first page of your passport or both sides of your ID card and upload it to Cake DeFi.
- Cake DeFi will for proof of your residence address in the form of a bank statement, tax return, or utility bill photo with your address clearly visible.
- Upload the proof of residence photo and proceed.
- The Cake DeFi verification process may take up to 24 hours, and once it’s finished, your account will be activated.
How Secure Is Cake DeFi?
Cake DeFi has exceptional security measures that go beyond passwords and website encryption. Nearly all of the funds on the platform are stored in Cake DeFi’s cold wallets, while a tiny portion of the assets is reserved for liquidity purposes and stored in hot wallets.
Also, the Cake DeFi cold storage uses a multi-signature sign-in protocol that requires multiple parties to submit their access codes in order to access the funds. This makes it extremely hard for unauthorized parties to steal access credentials for the platform’s cold wallets.
Furthermore, customer funds and platform assets are separated, and Cake DeFi will never use your assets for other purposes besides the services you are using.
Additionally, Cake DeFi has a periodical vulnerability test procedure and software protection from DDOS attacks that attempt to jam up the platform.
Has Cake DeFi Ever Been Hacked?
Cake DeFi’s security measures have been quite enough for now to prevent any hack attempts.
Is Cake DeFi a Regulated Platform?
One of the critical reasons why Cake DeFi requires ID verification is the fact that it’s a regulated platform that answers to reputable regulatory institutions in various regions, including the European Union.
How Does Cake DeFi Compare to Alternative Platforms?
UniSwap (UNI) and PancakeSwap (CAKE) are among the largest DeFi platforms on the crypto market, and they provide most of the services available on Cake DeFi.
Both platforms rely on numerous liquidity pools, which yield variable rewards, from a few percent all the way to double-digit rewards, and they support much more cryptos compared to Cake DeFi. However, many of those coins are micro-cap cryptocurrencies, and the platforms have low liquidity for those assets, while Cake DeFi focuses on a few leading coins and strives to provide deep liquidity for those assets.
UniSwap and PancakeSwap have a key advantage over Cake DeFi in the form of their decentralized crypto exchange service, which allows users to swap hundreds of cryptos with just a few clicks once they connect their crypto wallets to the platforms. There’s no account creation or ID verification process.
In conclusion, both competitors offer a broader selection of liquidity pools and assets, but many of those assets are extremely high risk, while Cake DeFi only supports reputable cryptos.
Does Cake DeFi Have an App?
Cake DeFi users can download the platform’s app from Google Play or App Store and enjoy a smooth user experience on their mobile phones. The app has a dominantly white interface which is easy to navigate and makes using the platform even easier than the already well-designed web version.
Additionally, app users have access to the Cake DeFi Earn feature, which acts as a simplified quick staking option.