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Cakedefi — Earn Crypto While You Sleep

LEARN & EARN | LIQUIDITY MINING | STAKING | LANDING

This Article will teach you everything there is to know about Cake DeFi. The goal is to provide you with an overview of the platform’s function and products, as well as my Cake Defi experience. In general, you should be able to invest with Cake DeFi and understand what happens to your money or cryptocurrencies with the help of this guide. Please keep in mind, however, that you should be reasonably comfortable dealing with cryptocurrencies. Only invest if you understand what is going on on the platform.

Julian Hosp and U-Zyn Chua founded Cake DeFi in Singapore in June 2019.

The stated goal is to make decentralised financial services (DeFi) and cryptocurrencies accessible to and usable by all. It also intends to generate cash flow. Julian Hosp, in particular, is a well-known crypto-influencer in German-speaking countries, where he has been active for many years.
Cake is built on the DeFi Chain blockchain, and the DFI is the associated coin. As a result, the “base currency” in which Cake rewards (your return) are paid out is almost always DFI.

Cake DeFi, like most other crypto platforms, has a guided signup process because it is a regulated platform. The registration process is simple and quick. After submitting the necessary documents, you can usually begin investing within a few hours, or at most 1–2 days.
A valid ID is required, as well as recent selfies of yourself. The entire procedure is designed to meet KYC (Know Your Customer) requirements and to prevent money laundering. Simply follow the steps until they are completed. Then you can begin immediately.

Get $30 worth of DFI when you sign up and make a deposit of $50 or more!

Cake DeFi PaymentTransactions

Of course, before you can invest in Cake DeFi, you must first deposit cryptocurrency(s) into your wallet. You have three options for this:
Purchasing cryptocurrency with fiat money (e.g. Euros).
Coin exchange/swap
Transfer funds into the wallet using blockchain technology.

CakeDeFi’s Operation

On Cake, you can invest in the following options or products.

1) Crypto Landing

Crypto Lending enables you to lend your cryptocurrencies to others in exchange for a fixed interest rate. In this case, Cake will take care of everything else. Simply transfer your coins to Cake and “deposit” them into Lending.

If there are no cryptocurrencies to lend in the wallet yet, proceed to the depositing or buying section above. If there are, you can begin immediately. There is one minor difference between my previous Cake Defi lending experiences: lending is always done in batches. This means that the cryptocurrencies are held for a set period of time before being lent. The deposit can still be adjusted as long as the accumulation is still running.
Select Lending under Products on the Cake website, followed by the appropriate batch that corresponds to the coin you want to lend.

The interest rates vary depending on the cryptocurrency you wish to lend. Some cryptocurrencies also have tiers of interest rates based on the currency’s future price. Here’s an example from the world of Bitcoin.
When you click “join,” a dialogue will appear in which you can enter how much of your cryptocurrency you want to lend. Choose how much cryptocurrency you want to lend and you’re ready to go.
Take note of the selection option for the automatic reinvestment setting in the next dialogue. After the batch expires, you have the option.

1) Do not reinvest automatically at all,
2) Reinvest only the initial investment amount automatically, or
3) At the end of the batch, automatically reinvest your initial investment plus accrued interest.

The final step will provide you with a summary of your settings and conditions. Check the box to confirm your acceptance of the terms, then click “Join” one more time. You’ve finished the rental process. You are ready to go as soon as the start date is reached.
You have the option to change your settings until the batch’s final start. For configuration, select the appropriate batch.

Get $30 worth of DFI when you sign up and make a deposit of $50 or more!

2) Staking

Staking is another interesting way to invest in Cake and generate returns in the form of cash flow. With your cryptocurrencies, you can participate in a masternode pool for which staking is available. As a reward for contributing your coins to the Masternode pool, you will receive a portion of the Staking Rewards. After deducting a processing fee, which Cake will retain directly, your rewards will be paid out to you twice daily as interest.

Select “Staking” and the corresponding cryptocurrency you want to stake on the Cake website, under Products. Stake should be selected.
You select the number of staking shares you want to purchase in the following dialogue. The basic formula is as follows: 1 DFI equals 1 share of the pool. So, if you want to deposit 100 DFI, enter 100 at “I buy,” and 100 DFI will be automatically calculated on the right side.

What’s new from my Cake Defi experience is that you can now buy DFI staking shares with other supported cryptocurrencies. To do so, use the dropdown menu on the right to select the currency you want to use. Add how many shares you want to buy to the left, and it will automatically calculate how much it will cost you.
Take note of the following: during this process, the chosen cryptocurrency is automatically exchanged into, say, DFI and thus “spent.” If you do not want to do that, you should obtain the staking currency in another manner. The process is completed when you click Stake, and you have successfully completed your staking.

Another crucial feature of Cake DeFi is also concealed on the Staking page. It is the reinvestment of your Staking Rewards on an automatic basis. You will only be able to achieve the stated interest rates if you enable the “Automatic Compound Interest” feature.

The interest rates shown are the so-called APY (Annual Percentage Yield), which is the interest plus compound interest. In theory, there is no reason not to use automatic reinvestment; otherwise, the interest earned will sit “uselessly” in your wallet. Unless you use the freezer, you can withdraw coins from your staking account at any time. But we’ll get to that later.
To set the compound interest function, look for the function “Automatic compound interest” in the upper area (green frame) of the Staking page and click on the down arrow on the right (green arrow). You can toggle the compound interest feature on and off at any time.
If you want, you can remove your coins from the staking at any time. Of course, you will receive fewer rewards as a result. It is also possible to add more coins at any time.

Get $30 worth of DFI when you sign up and make a deposit of $50 or more!

3) Freezer for DFI

You can literally freeze your DFI for a set period of time using the Freezer. The benefit of this is that you can save fees and thus increase your interest and cash flow depending on the duration of your freezer.
As previously stated, Cake retains a small portion of your staking Coins Rewards as a “service fee” for processing and providing the Masternodes. The longer you keep your freezer, the more money you save. The disadvantage is that your DFI has been frozen for a set period of time and cannot be withdrawn or exchanged under any circumstances.
Another thing to keep in mind is that even if you place DFI in the freezer, the APY for staking is dynamic and not fixed.
There is also a nice tool on the Freezer page where you can experiment with different DFI amounts and time periods. You can experiment with the various parameters without any obligation to see what the end result would be for you (green frame).
A “Stake DFI” button is located at the tool’s bottom. This is for the previously described “normal” staking. Further to the right, you’ll see the “Freeze now” button (green arrow). Attention: the settings for the freezer that you set in the tool above are overwritten in the following dialogue. As a result, double-check your settings before clicking “Freeze.”

Now we arrive at the final and most exciting product that you can use at Cake. This is referred to as Liquidity Mining (LM). If you are unfamiliar with Liquidity Mining, you can learn more about it in the Crypto Lending Tutorial (download).
Cake currently provides LM for the following cryptocurrency pairs:

BTC-DFI
ETH-DFI
UST-DFI
LTC-DFI
BCH-DFI
DOGE-DFI

Of course, before you can join the LM, you must have enough cryptos in your wallet to meet your needs. The value of both currencies you put into the pool must always be equal in LM.
Cake recently updated the LM interface, making it a “one click investment” by default with “Simple Mode.” This means that when you enter your currency into the LM, half of it will be automatically converted to DFI. If you have 100 USDT in your wallet and add it to the LM, 50 USDT will be converted to DFI to balance your pair.

This has both benefits and drawbacks:
Benefits: You don’t have to worry about purchasing DFI at a comparable price.
Drawbacks: half of your initial currency is sold, and the price at Cake is likely not the cheapest.

By selecting “Products” and “Liquidity Mining,” you will be directed to the LM page. Look for the pair you want to join there. Then select “Add Liquidity.”
Simple Mode does not appeal to me. On the Add Liquidity page, deactivate the Simple Mode with a switch on the bottom left to display the “classic” dialogue.

After you’ve chosen your LM pair, opened the dialogue, and turned off Simple Mode, the next step is to decide how much of your cryptocurrencies to put into the LM pool. By selecting “Max,” you will select everything available.
To reiterate, the pair in the LM must always be perfectly balanced in terms of value. As a result, if you enter a value on one side, the countervalue on the other side will be calculated automatically. As a result, the currency you have less of in your wallet is also a limiting factor in your deposit.
The DEX market price stability bar indicates how well-balanced the LM pool is at the moment. A higher percentage is preferable.
Clicking “Add” will bring up all of the details again, which you must confirm before proceeding.

Get $30 worth of DFI coins + $10 Learn and Earn as a bonus

How Cake DeFi makes money?

So far, my Cake Defi experience has taught me that the company’s business model is essentially built on two pillars:
Cryptocurrency aggregation.
Liquidity mining and staking fees
Cake aggregates the cryptocurrencies that its customers lend into larger blocks and brokers them on for a set term in aggregation. Details on this can be found in the crypto tutorial (download).
As previously stated, Cake deducts a small service fee from your staking and liquidity mining rewards. These are the second source of revenue for Cake.

Is Cake a profitable business?

Cake DeFi is a relatively new company. However, according to its own data, it is already very profitable.

There is, indeed. Sign up for Cake DeFi using my link and receive $35 in DFI as a bonus. The home page only says $30, but you get a total of $35. You can also refer friends and acquaintances if you are registered. To do so, go to the Cake website and look for your personal referral link under the Referral section. There is also a detailed description of how the referral programme works on the page.

If you sign up with CakeDeFi, use this referral code 335951 to receive $30 in DFI as a Sign Up Bonus + $5 Learn and Earn
In addition, if you deposit $50, you will receive an additional $20 as a first deposit bonus.
Sign up by clicking here.

Get $30 worth of DFI coins + $10 Learn and Earn as a bonus

1. Create an account!

2. Verify your mail and log in.

3. Complete your KYC verification.

4. Now make a deposit worth $50 of any supported currencies.

5. You will get $30 worth of DFI coins + $10 Learn and Earn, if you’ve signed up using the above referral link else you will get only $20 worth of DFI coins.

6. Also get $10 worth of DFI for each referral.

The rewards will be locked for 180 days in the Confectionery program but you will automatically earn 37% interest during this time.

Get $30 worth of DFI coins + $10 Learn and Earn as a bonus

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Dhiraj Dixit

Bangalore 🌁 App Engineer 👾 Partyfreak🕺 Explorer 🐾 Investor 💎 🎂 31st Dec