Cake DeFi is a new buzzword in the DeFi ecosystem. Dive in to learn about the Cake DeFi in detail.
The innovative use cases of decentralized ledger technologies resulted in the development of DeFi (decentralized finance). Created as a trustworthy decentralized alternative for accessing financial services, DeFi has been touted as the next stage in the evolution of finance and technology. Various DeFi solutions have emerged in recent times with unique functionalities.
One of the most prominent entries in the DeFi ecosystem is Cake DeFi, known for offering access to DeFi services. What is the Cake app, and how does it work? Does it provide the guarantee to access all DeFi services? Who can use the DeFi app? The following discussion will help you find the answers with a detailed guide on the fastest growing DeFi platform.
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What is Cake DeFi?
Well, that was the obvious question you had to ask in a discussion on the Cake DeFi app and basics. It is the world’s fastest growing DeFi platform which helps in improving accessibility to decentralized finance services. The primary vision underlying the DeFi app focuses on helping users in generating favorable returns from their cryptocurrencies and digital assets. Cake DeFi has been tailored with the objectives of enabling usability, ease of use, and transparency. As a matter of fact, it is one of the most effective entry-level DeFi platforms for anyone interested in exploring DeFi applications.
The founders, U-Zyn Chua and Julian Hosp created the app in June 2019. As a benchmark of transparency in the DeFi sector, the app also includes a Cake DeFi coin, known as DFI. It is the base currency in which users can receive rewards from the platform. Another interesting highlight of Cake refers to the fact that it is a fork of the Bitcoin blockchain. As a result, Cake DeFi presents a stark contrast from other DeFi solutions, which are developed on Ethereum. You should also note that the Cake chain uses Proof of Stake consensus.
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Who Can Use Cake DeFi?
The next important highlight in a Cake DeFi review would draw attention towards the target audience for the app. The app offers a reliable platform for a seamless experience of investing in cryptocurrencies. Cake focuses on helping veteran crypto investors, as well as beginners, access DeFi services without any complexities.
Therefore, anyone interested in capitalizing on the potential of cryptocurrencies and DeFi services could use the app. The primary target audience of Cake DeFi crypto solution includes classic millennials in the age group of 30 to 40 years with a university degree. In addition, people with firsthand experience in Bitcoin and other crypto-assets can also use Cake app for DeFi services.
In simple words, anyone can use Cake DeFi for accessing decentralized financial products. The platform ensures that beginners, as well as crypto experts, find it equally easy and intuitive.
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What Are the Cryptocurrencies You Can Buy on Cake DeFi?
Users can deposit Bitcoin and Ether in their Cake app accounts. In addition, you can also purchase the native Cake DeFi coin, i.e., DFI. Interestingly, you don’t have to wait longer than a few minutes to complete the purchase process. Once you complete the purchase process successfully, you can find the coins in your Cake app account. However, you must note another significant detail about the Cake DeFi token, as the DeFi platform does not have a native token. Quite an interesting turn of events, isn’t it?
As a matter of fact, the Cake decentralized finance platform does not have a native coin like other DeFi platforms. On the contrary, the DFI Coin is actually the native coin of DeFi Chain, a different blockchain project. DeFi Chain focuses on the introduction of DeFi services to Bitcoin. Where does the Cake DeFi app fit in the picture here? The Cake decentralized finance platform has partnered with DeFi Chain for R&D and staking.
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How Can You Use Cake DeFi?
The most significant highlight in any Cake DeFi review would obviously draw attention towards its working. What are the functionalities of the Cake app? How can you access the different DeFi services through the app? The developers of Cake DeFi have maintained a clear focus on enabling simple user experiences alongside increasing the prospects for higher returns.
Most important of all, the DeFi app has been improving with new features aimed at making the app a one-stop destination for financial asset management. You can get a broader understanding of using Cake DeFi crypto solution by identifying the services it offers. Here are some of the notable services you can access through the Cake decentralized finance app.
Even if you cannot find a native Cake DeFi coin, you can purchase cryptocurrencies through the platform. Cake app has listed Bitcoin, Ether, and DFI for sale in partnership with Transak and BANXA for managing crypto purchases. You can buy cryptocurrencies through a credit card or SEPA by using the following simple steps.
- Use your credentials and log in to the Cake DeFi app account.
- Select “Buy BTC” from the menu at the top right corner of the screen.
- Now, you can select the coin you want to buy and the partner alongside the payment method.
The simple process clearly indicates how the Cake decentralized finance platform helps in opening up the crypto world to beginners.
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Cake DeFi also offers helpful lending services for obtaining passive income or cash flow on your crypto assets. The platform ensures a complete guarantee against risks for users’ capital and returns. Cake DeFi crypto lending services open up every week with lending batches that run for 28 days. You have the assurance of a guaranteed base return on crypto lending on the platform. In addition, you can also get potential bonus returns when the spot price of Bitcoin or Ether falls in a specific price range.
On the other hand, you must notice that the APY or annual percentage yield expected for each batch can differ considerably. Upon lending your crypto assets, you are basically locking them in options contracts for a duration of 4 weeks. Interestingly, you don’t have to pay any fees for Cake DeFi coin lending services. Once you have completed the 4-week period for a lending batch, you will have three different options.
- Enter the next batch automatically for generating compound interest
- Withdraw the returns on the crypto assets
- Withdraw the principal amount and returns
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You can also use the Cake DeFi app for staking as it is a Proof of Stake blockchain. According to Proof of Stake consensus, users have to dedicate coins or tokens in validator nodes for verifying transactions. Users staking their assets in the platform would receive rewards for offering the service.
The Cake DeFi token supported for staking include DASH and DFI. Users can send the coins they want to stake directly to the Cake app account. Furthermore, Cake decentralized platform also ensures freedom from minimum term of deposit. Users can participate in staking at any time and withdraw their assets out of staking according to their preferences.
Users on Cake DeFi can also access the facility of liquidity mining for offering liquidity to users who want to swap cryptocurrencies on decentralized exchanges. Most important of all, you don’t have to go through multiple complicated steps for liquidity mining on Cake app. You can find the option for liquidity mining in the products of Cake app with access to different liquidity pools. Just choose the liquidity pool you want to participate in and enter the desired amount.
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Another striking entry among the different products in a Cake DeFi review would point at Freezer. It is actually a loyalty program tailored for rewarding users for dedicating their funds to the Cake platform for a specific duration. Users can avail the functionalities of Freezer in the case of funds allotted for staking and liquidity mining.
In the case of regular Freezer durations, you can get a discount of almost 85% on fees charged by the platform. On the other hand, you can also opt for the 5 years and 10 year Freezer duration for DFI staking. In such cases, you have the assets locked in the DeFi Chain blockchain. However, users have the opportunity to earn twice the regular staking rewards with longer lock-in periods.
Decentralized Assets on Cake DeFi
The final and most interesting aspect of using Cake DeFi crypto solution is access to decentralized assets. You can explore viable opportunities for investments in decentralized assets for obtaining price exposure. Users can also use decentralized assets such as dTSLA for liquidity mining purposes. The decentralized assets are basically cryptocurrencies created on the DeFi Chain blockchain. The supply and demand trends of decentralized assets help in determining their price alongside presenting correlations to real world assets.
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The overview of Cake DeFi shows how it offers a comprehensive solution for accessing DeFi services. Primarily intended as a solution for bringing DeFi to Bitcoin blockchain, the Cake decentralized finance platform offers a broad range of DeFi services. You can purchase cryptocurrencies directly through the platform alongside participating in staking, lending, and liquidity mining. On top of it, you can also have access to decentralized assets with the Cake app.
In the long run, solutions like Cake app have the capability to define the decentralized finance landscape. The Cake DeFi review reflects on how the infrastructure serves as a benchmark for future DeFi solutions. Most important of all, the Cake blockchain uses a Proof of Stake consensus and does not rely on Ethereum like other DeFi solutions. Can the Cake decentralized finance app create a new breed of DeFi solutions? Learn more about DeFi and find the answer right now.
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*Disclaimer: The article should not be taken as, and is not intended to provide any investment advice. Claims made in this article do not constitute investment advice and should not be taken as such. 101 Blockchains shall not be responsible for any loss sustained by any person who relies on this article. Do your own research!