Cake DeFi's focus is on a simple user experience, in addition to generating high returns for users. We are constantly enhancing and adding more features, with a vision to eventually become a true one-stop platform where you can manage all your financial assets.
This article will help you get to know our products in a simple way and show you how you can easily profit from them.
1. Buy Bitcoin, Ethereum or DeFiChain directly with Euro / Dollar
Cake DeFi has started offering BTC, ETH and DFI purchases. All purchases are handled by our trusted partners, BANXA and Transak, and when you use the services to make a purchase, the cryptocurrencies are automatically credited to your account on Cake DeFi.
This means that you can easily buy Bitcoin, Ethereum or DeFiChain via SEPA or credit card. Simply follow these steps:
Log in to Cake DeFi
Click on "Buy BTC" in the menu at the top.
After you click on the "Buy" button, you will be able to choose your preferred coin, partner and payment method (with all conditions and fees disclosed of course).
Each step of the process has been clearly marked out for you, with dedicated instructions guiding you every step of the way. After the purchase, your BTC/ETH/DFI will be automatically deposited into your Cake DeFi account.
You can find your cryptocurrencies on your balances page:
Now that you have some cryptocurrency, like BTC, ETH or DFI in your account, you can start making use of the other products, offered by Cake DeFi, which will enable you to generate high returns and rewards with ease.
- Is there a minimum and a maximum to buy cryptocurrencies with fiat?
- Through which partner is the purchase of cryptocurrencies with fiat completed?
2. Lending Service
Lending allows you to earn a passive income (cash flow) on your bitcoin, ether, USD Tether as well as USD Coin. Your capital and returns are fully guaranteed and risk-free, with possible bonuses. (Bonuses = additional returns on top of the guaranteed returns).
- Every week we offer BTC / ETH / USDT / USDC Lending
- Each BTC / ETH / USDT / USDC Lending batch runs for 28 days, starting and ending on a Friday.
- The base return of BTC / ETH / USDT / USDC Lending is guaranteed (see below). There may be potential bonus returns if the spot price of BTC / ETH gets within a certain price range.
- The expected APY (annual percentage yield) may vary from batch to batch. We display the expected APY on the website before you join a batch.
- You can participate with any BTC / ETH / USDT / USDC amount of your choice.
- Once you choose to participate, your BTC / ETH / USDT / USDC will be locked into option contracts for the next 4 weeks.
- After the 4-week period of the batch, you will have the option to automatically enter the next batch (to generate automatic compound interest), withdraw only your return, or withdraw your entire principal and your return back into your account.
Here's a simple sequence on how you can enter into a batch:
- Go to https://app.cakedefi.com/lending
- Scroll down until you see your desired batch (BTC / ETH / USDT / USDC)
- Click on "Enter"
4. Next, just enter your desired amount that you would like to invest and you are all set.
You will get guaranteed returns credited directly into your account every 4 weeks. The normal settings are set so that your contribution as well as the returns automatically go into the next batch. So you don't have to do anything at all, you can sit back, benefit from the tremendous power of compound interest and enjoy your piece of cake while your bitcoins work for you.
In addition to Bitcoin, Ethereum, USDT and USDC Lending, we also offer Staking services for other cryptocurrencies.
- What are the expected returns of the USDT Lending service?
- With which coins can I use the Lending service?
3. Staking Service
There are various forms of consensus mechanism. Besides Proof-of-Work (PoW), there is also Proof-of-Stake (PoS) — these are the two most commonly used and well-known ways to reach consensus on a decentralised blockchain network. When using Proof-of-Stake, this means putting coins or tokens into so-called "nodes" to verify transactions for cryptocurrencies utilising the Proof-of-Stake consensus mechanism. Stakers receive staking rewards for providing this service. The rewards vary from coin to coin in this regard.
Cake DeFi currently supports the following coins for Staking:
- Dash (DASH)
- DeFiChain (DFI)
To participate, there are two different ways to join in on the staking:
- Send your desired coin directly into your Cake DeFi account
- Exchange your freshly purchased BTC/ETH/DFI with your desired coin. To do this,
- Click on "Products" in the upper left corner and choose "Staking"
- Click at your desired coin on “STAKE”
- Select any coin available to buy your staking shares with
How to send your staking coin directly to Cake DeFi
- Click on "Balances" in the upper right corner of your profile.
- Click on "DEPOSIT“ right next to your desired coin
3. You can now send your coins to this address. (Important: Send ONLY the selected coin to this address, no other one!)
Important: With Staking, there is no minimum term. You can participate at any time, and can even take your coins out of the Staking service when you choose. Your rewards will be credited directly twice a day, depending on the coin. Your default settings are the same as with Lending, in that they automatically remain in Staking.
- Can I run a masternode myself? Why should I use Cake DeFi?
- What is the smallest amount of staking shares that I can purchase?
4. Liquidity Mining
With Liquidity Mining, you provide liquidity for users who want to do a swap of cryptocurrencies on the decentralized exchange. Liquidity mining is a more complex product and cannot be properly explained in a few sentences, unlike other products. You can find a more thorough, yet still simple explanation here: Liquidity Mining simply explained
Participate in Liquidity Mining in just a few steps:
1) Log in at https://app.cakedefi.com/
2) Click on "Liquidity Mining" under "All Products" in the top menu or follow this link
3) Now you have the different liquidity pools available to participate in Liquidity Mining:
BTC - DFI
ETH - DFI
USDT - DFI
USDC - DFI
LTC - DFI
BCH - DFI
DOGE - DFI
4) After you have chosen a liquidity pool, you can simply click on "ADD LIQUIDITY".
5) Now you can enter your desired amount. For the counter pair, the amount is automatically adjusted so that they are in proportion.
Once you have chosen your amount, you can click on the button: "Add".
A security warning pops out afterwards. Please read it carefully and do not click on the confirmation until you have fully understood it.
5. Invest in Decentralized Assets
There are two main things you can do with Decentralized Assets such as dTSLA on Cake DeFi:
- Invest in Decentralized Assets to get price exposure, by just buying and holding them and
- Participate in Liquidity Mining with Decentralized Assets after you bought the respective dToken pair you’d like to do it with
What exactly are Decentralized Assets on Cake DeFi?
Decentralized Assets on Cake DeFi such as dTSLA are in fact nothing else than cryptocurrencies and can be minted (created) by anyone on the DeFiChain blockchain.
The price of dTokens like dTSLA is determined by supply and demand and can be traded on a decentralized exchange (DEX). What makes them interesting, though, is that the price may not necessarily be correlated to the rest of the crypto ecosystem, but rather to real world assets.
If, for example, you invest in dTSLA, then you are not investing into the real TSLA stock, but you are rather investing into a digital token that is likely to follow the price of TSLA amongst other variables. As such, dTSLA is a decentralized asset, created by anyone and backed by nothing else but cryptocurrencies such as DFI, BTC or stablecoins like USDT or USDC.
6. Borrow with Cake DeFi
Crypto investors who do not wish to sell their crypto assets but want to receive funds to support their lifestyle can use Cake DeFi’s “Borrow” service and put their crypto assets as collateral.
What crypto assets can they use as collateral?
Borrowers can pledge DFI as collateral or combine it with Bitcoin (BTC), Ether (ETH), Tether (USDT) and USD Coin (USDC) (as long as 50% of the collateral is DFI). In return, borrowers receive the stablecoin DUSD - which is currently ranked in the highly-referenced cryptocurrency price-tracking website CoinMarketCap and is also listed on the DeFiChain DEX.
What is the benefit of borrowing DUSD?
Just like any other stablecoin, DUSD can be used to purchase items or, better yet, participate in other investment opportunities. In fact, a practical way to invest the DUSD borrowed would be to participate in Cake DeFi’s Lending, Staking and / or Liquidity Mining either directly or by swapping the DUSD into other coins.
What are the risks of using “Borrow”? Does it have certain limitations or restrictions?
Indeed, every investment tool has certain risks, limitations and / or restrictions attached to them. Users of Cake DeFi’s “Borrow” service, for example, should be aware that their collateral will be at risk of being liquidated if it drops below the 200% collateralization ratio.
To avoid this, borrowers should be mindful of the amount of DUSD that they are being allowed to borrow - which can be seen in real-time as they key in the total amount of collateral that they are willing to pledge.
Can borrowers convert the DUSD that they borrowed into other crypto assets?
Indeed, they can convert the borrowed DUSD into USDC or DFI without any conversion fee. However, conversion is no longer allowed once the borrowing process is complete and the DUSD appears on the borrower’s wallet.
It should also be noted that borrowers may only convert DUSD into USDC through the “Borrow” service, and that there are no other features available on the Cake DeFi platform that allows this action to take place.
Finally, this service can only be accessed through the Cake DeFi mobile app and is only available to those with verified accounts.
The Freezer can be described as a loyalty program that rewards you for committing your funds with Cake DeFi for a certain period of time, ranging from just 1 month up to 10 years. It is available for funds allocated to the Staking & Liquidity Mining products.
The regular freezer gives you up to an 85% discount on the fees Cake DeFi collects. The 5 year and 10 year DFI Staking freezer is a little different, due to the funds being locked on the DeFiChain blockchain itself. In turn, users can receive up to 2x the regular staking rewards.
To learn more about the new on-chain freezer, read here.
Using the Freezer to receive more rewards is a piece of cake:
2) Head over to https://app.cakedefi.com/freezer
3) Select the asset you want to freeze (Staking/Liquidity Mining shares):
4) Select the length of time you want to freeze your funds and receive higher rewards for:
5) Click on “Freeze now”