Many cryptocurrency owners around the world are determined to keep holding on to their digital
assets – hopeful that its value will rise in the future. Although this can prove lucrative in the long run, there’s one major downside: unlocking cash flow in the short term. The decentralized finance sector has opened up exciting new possibilities for crypto enthusiasts. Now, at long last, consumers can make virtual currencies work for them. And one of the platforms that’s at the beating heart of DeFi is Cake.
Founded in 2019 by two passionate blockchain experts, Cake aims to deliver a transparent, profitable and simple way for consumers to grow the value of their digital assets – offering far healthier returns than what’s on offer from major bank accounts. At the center of Cake’s offering are “Lapis” which – as you may have guessed – have a gastronomical theme. Lapis get their name from a famous Singaporean cake and serves as a nod to where the company was first founded.
Bitcoin Lapis offer three distinctive advantages. First, Cake vows to deliver full transparency on what happens to a user’s BTC, and how these healthy returns are generated. Second, middlemen are cut out of the process to ensure a greater chunk of the profits make their way into the user’s pocket. And third, the platform says it is determined to demystify DeFi once and for all, meaning anyone can start using the service without requiring detailed technical knowhow.
According to the brand’s website, Lapis can offer annual yields of up to 9% at present. All users need to do is to register for a new account, complete a Know Your Customer check, and make a deposit. To ensure that this service is open to all, there is no minimum amount of crypto that a user needs to get involved. One Lapis cycle lasts for four weeks, and at the conclusion of this period, users have two choices: either keep their BTC locked to compound interest or make a withdrawal. Bitcoin’s recent surge has actually meant that some users have even received a 2.5% bonus on top of this.
Cake, which is regulated by the Monetary Authority of Singapore, also supports a multitude of other digital assets. The platform claims ETH can generate annual yields of 8%, while USDT can deliver returns of 11%. “Transparency” is a crucial buzzword for Cake – a major selling point. The company’s executives say few other DeFi protocols actually disclose how they generate cash flow for their users.
As a result, they’re determined to set new standards in the market, enabling the community to independently verify that everything’s legitimate. This is achieved by disclosing their trusted lending partners. Executive summaries are released at the conclusion of every quarter, as well as clear directives for the three months that lie ahead.
At the conclusion of Q3, Cake’s CEO and co-founder Julian Hosp said: “Cake is successfully moving out of the infancy and toddler stage, into becoming a young adult. We see this with our revenue, team growth, user numbers and infrastructure – which all have either been pretty much on our set targets or we even outperformed.”
Constantly unveiling features: It’s been a busy 2020 for Cake – coinciding with the unprecedented boom in demand for DeFi. Bitcoin Lapis launched in March, swiftly followed by support for Ethereum and USDT. The final quarter of this year will be no exception. A yield farming and liquidity mining service is going to launch imminently, and the second iteration of the Cake platform will be released.
On 29 October, Cake also announced that its users can now buy and deposit cryptocurrencies using fiat as a result of a partnership with an innovative on-ramp partner based in Melbourne. Visa and Mastercard payments are supported in more than 150 countries, and purchases can also be made using Apple Pay in the territories where this method is available. Bespoke solutions have also been unveiled for particular nations. Users in Australia can use POLi, PayID, BPAY, Newsagent and Australia Post, iDEAL is supported in the Netherlands, UK consumers can use faster payments, SEPA is offered in the EU, and Interac in Canada.
Initially, BTC and ETH purchases are supported, offering a gateway into a diverse range of other digital assets. Crucially, customers in the EU, Australia and Canada will also benefit from 0% gateway fees whenever they make payments using the various bank transfer methods available. Overall, Cake wants DeFi to be straightforward – and believes people to be able to hold crypto and earn interest. In other words, this is a platform that wants people to have their cake and eat it.
Disclaimer: This is a paid post and should not be considered as news/advice.