You probably would have heard of the term defi recently. What's up with the hype with defi? Is it the future of financing?
DeFi is short for “decentralized finance,” an umbrella term for a variety of financial applications in cryptocurrency or blockchain geared toward disrupting financial intermediaries. DeFi draws inspiration from blockchain, which isn’t controlled by a single, central source. That’s important because centralized systems and human gatekeepers can limit the speed and sophistication of transactions while offering users less direct control over their money. DeFi is distinct because it expands the use of blockchain from simple value transfer to more complex financial use cases.
Cake is a platform that empowers you to be in control of your finances by creating cashflow and harnessing the potentials of Decentralized Finance.
There are 3 main services offered by Cake
1. Staking
Bake masternodes and earn staking rewards in real time!
Staking is simply the cryptocurrency equivalent of placing your funds in a fixed deposit, with much greater flexibility, and higher returns.
You can stake DFI, DASH, PIVX, and Zcoin, with APY (interest rates) of up to 37%
It's risk-free!
2. Liquidity Mining
Deposit your favorite coins into shared liquidity mining pools and mine popular coin pairs for high rewards and minimal fuss.
Returns are high, but so are its risks - the most important of which that you should be aware, is the risk of impermanent losses.
Check the video out below to learn more about this risk.
In short, the ideal situation is one in which the cryptocurrencies invested in the liquidity pools increase/ decrease in value in tandem with each other - but this isn't often the case. The risk of impermanent losses increases the greater the discrepancy between the changes in values of both currencies, from the time of adding funds to the liquidity pool. Personally, I have experienced losses with liquidity mining, but these are easily offset by the DFI rewards; and given the fact that DFI has been booming in recent times - so overall, I would still say it is pretty profitable!
3. Lending services/ lapis
Lapis is more akin to the traditional fixed deposit, compared to staking. Lapis batches occur every week. When you enter a batch, you effectively lock up your funds for a tenure of 1 month. Base returns are guaranteed, with bonuses if the currency reaches a certain target.
Check out my video presentation below of cakedefi
Cake is currently running a sign-up bonus programme, whereby you can get up to $30 worth of DFI free upon sign-up with a referral link.
Click here to register
Best of all, cake has a vibrant community team, with good customer support service.
https://t.me/CakeDeFi_EN
Make sure to sign up with the link below to avail the $30 DFI bonus (new signups without referral links earn only $20 DFI)
https://app.cakedefi.com?ref=677920
