Is Cake DeFi a Scam?
They say if it sounds too good to be true…
May 18, 2021 update: Thank you to co-founder U-Zyn Chua and another Cake DeFi employee for their responses.
Before we get too into this, you should know where I’m coming from. I’m relatively new to the crypto space, just getting into it toward the end of last year. Since that time, I’ve been aggressively saving, investing, and exploring.
I started by simply accumulating BTC & ETH at a steady 80/20 split. It grew fast, which pulled me in. I began branching out to other popular altcoins like ChainLink, Polkadot, and Cardano. Finally and most recently, I became interested in defi projects.
Now, defi — short for decentralized finance — is a fairly broad term and encompasses many services, the most popular of which are liquidity pooling and lending. The decentralized nature makes for a bit of a learning curve. It can be confusing to deviate from the web 2.0 world we live in today, where you create an account with every site you visit to track everything you do with that site.
That’s where a service like Cake DeFi starts to look pretty good. It’s not quite “defi” in the purest sense — more of a centralized defi, or CeDeFi (huh?). It’s the first defi project that I participated in, though, and that’s where our story today picks up.
