Decentralized finance is sweeping the world as the digital asset industry evolves with new and reliable products for savings and investment within the crypto ecosystem.
DeFi is the ultimate challenge to TradeFi, also known as “traditional finance”. This novel concept is not yet known to many around the world, but it serves millions of satisfied customers who are already at risk of billions of dollars.
Cake DeFi is one of the leading companies in this field. The company holds a license under Singapore’s Payment Services Act (PSA) and, like PSA, is applying for a crypto license in the European Union.
Ratification of the law by EU member states will enable the transition from this license to a MiCA (Markets in Crypto-Assets) license in 2024, which will then become valid throughout the EU.
Finance Feeds had the opportunity to talk to CakeDeFi’s Ceo & Co-Founder, Dr Julian Hosp, to learn more about the platform, its products, and the DeFi space.
Do you think DeFi will take over the financial world or run in parallel with TradeFi in the coming years?
This depends a lot on where DeFi is heading. Once DeFi is regulated, you have a chance to get out of your current niche. DeFi is also not for everyday investors, especially those who are not familiar with cryptography. This is also where CakeDeFi comes in. It provides a centralized platform for anyone to access DeFi applications and services.
In the long run, DeFi could be devastating to the traditional financial system if it can overcome these two obstacles to mass adoption.
For those who don’t know, what’s the difference between lending, freezer, liquidity mining, staking, and what’s most popular among investors?
Cake DeFi has three options for generating cash flow and passive income. Loan, Staking When Liquidity mining.. Lending is the act of lending cryptocurrencies in exchange for a guaranteed return of up to 7%. Our most popular product is staking because it is relatively low risk, offers competitive returns, and has low barriers to entry and understanding. Staking validates transactions on the PoS blockchain and customers are rewarded in return. Cake DeFi operates a fully transparent masternode pool and currently earns approximately 30% to 40% staking yields paid twice daily (every 12 hours). Liquidity mining is the process of providing liquidity to a liquidity pool to facilitate trading on a decentralized exchange (DEX). Users must provide a pair of cryptocurrencies in order to earn liquidity mining rewards distributed directly by the blockchain. These reach over 100% and can even be paid twice daily.
Cake DeFi freezer This allows users to lock cryptocurrencies from 1 month to 10 years and generate higher returns.
How much has your business grown?
Cake DeFi finally has more than 600,000 customers in 191 countries. That’s more than 10 times the number of customers we had at the beginning of 2021. In 2021, we paid our customers US $ 230 million. In the fourth quarter of 2021, we paid US $ 74 million. Cake DeFi receives a small commission from the rewards earned by the customer, so he only makes money when the customer makes money. As a start-up in less than three years, we are financially very strong. Cash flow is positive and we have a financial runway for at least four years.
Cake DeFi has launched a $ 100 million corporate venture division. How was it born, and how can startups apply?
To grow and innovate, you need to leverage and engage with external technologies and startups. In the long run, this leads to a destructive product known as CakeDeFi. That’s why we decided to invest US $ 100 million over the next two years to invest in and collaborate with startups in new areas of turmoil.
Companies interested in the Web3, Metaverse, or gaming industry can apply for funding from the Fund by sending an email with project details to. [email protected].. The CDV will contact the finalist project. Venture capital and mutual funds interested in co-investment opportunities and strategic partnerships can also reach out for further discussion.
