Cake DeFi unveils “Borrow,” a new product to give users novel opportunities to strengthen their crypto portfolios and maximize their returns
Decentralized finance (DeFi) has slowly been gaining momentum over the past year. For some of our audience who may still not be familiar with the concept, DeFi is an emerging financial technology that aims to democratize finance by replacing legacy and centralized banking and financial institutions with peer-to-peer relationships.
At the current rate, DeFi is poised to transform and revolutionize the traditional financial systems that have existed for thousands of years into decentralized models and gives control to the people. With the emergence of Web3, DeFi is also opening up a new ecosystem of DeFi, Web3, and cryptocurrency.
This development has also caught the attention of investors and venture capital firms looking for the next big winner. In recent months, investors have poured billions of dollars into NFT and Web 3-related projects. One of the leading tech companies in this space is Cake DeFi, a Singapore-based fintech platform that makes DeFi services and applications accessible to everyone.
We covered Cake DeFi last month after the fintech startup launched a $100M venture fund to invest in Web 3, NFTs, and fintech startups. Since our last story, Cake DeFi team has been working behind the scene to grow the platform and bring new features to their users.
Today, Cake DeFi unveiled a “Borrow,” a new product to give its users novel opportunities to strengthen their crypto portfolios and potentially boost their returns. The new product enables users to borrow Decentralized USD (DUSD) by pledging Bitcoin (BTC), Ether (ETH), Tether (USDT), USD Coin (USDC), and DFI as collateral. Users can use a combination of these cryptocurrencies as collateral, as long as at least 50% of the collateral is DFI.
The borrowed DUSD can be used to purchase items or invest in products that generate passive income such as Cake DeFi’s Lending, Staking and Liquidity Mining, where returns north of 70% APR are rather the norm than the exception. Borrow gives users a better option than just HODLing by providing them with liquidity that they can put towards generating predictable passive income.
“We are excited to launch Borrow to provide users with more liquidity to invest in DeFi services while holding on to their assets. DeFi empowers people to generate passive income on their cryptocurrencies without the constant need to trade. It is our goal at Cake DeFi to keep bringing such innovative services to our users,” said Dr. Julian Hosp, Co-founder and CEO of Cake DeFi.
Cake DeFi is a fully transparent, highly innovative, and regulated global fintech platform with over US$1 billion in customer assets. It empowers its user base, spanning over 700,000 registered users –– and fast-growing –– to earn cash flow from their digital asset investments.
Users can borrow Decentralized USD (DUSD) with their existing Bitcoin (BTC), Ether (ETH) Tether (USDT), USD Coin (USDC), and DFI as collateral at a preset collateralization ratio of 200 percent and five percent annual percentage rate (APR) (subject to change). Just like any other stablecoin, the DUSD can be used to purchase items or for investment purposes, such as participating in Cake DeFi’s Lending, Staking, and Liquidity Mining (either directly or by swapping to other coins).
Cake DeFi has experienced tremendous growth in 2021. A total of US$230 million were paid out to customers as rewards in 2021; US$75 million of it in the final quarter. In the near term, Cake DeFi’s immediate priorities are to continue growing its customer base as it aims to reach US$10 billion in total customer assets by the end of 2022.
Founded in 2019 by Julian Hosp and U-Zyn Chua, Cake DeFi is a fintech platform for growing cryptocurrency assets. Through its partnership with an internationally compliant and advanced fiat-to-crypto gateway solutions provider, Cake also provides support for swapping 13 major currencies into crypto.
By enabling and empowering its users to harness the potential of decentralized finance (DeFi), Cake DeFi aims to educate and inform people around the world on crypto and DeFi in a simple, easy-to-understand, and hassle-free manner. The company has launched a “Learn & Earn” program for new users to understand the basics of crypto and be rewarded with crypto for the completion of the course.