Staking, Lapis and Liquidity Mining with CakeDefi.
Our experiences with CakeDefi
In this post, we give an insight into our experience with the CakeDefi platform. It is also about how the platform works. Cakedefi is a crypto multi-investment platform to earn cryptocurrency using several different methods. Each of these methods carry different risks and rewards. Please weigh your capital and risk carefully before investing. In the field of cryptocurrencies, there is always a risk of total loss. On the platform, you are no longer the manager of your coins, the private keys are then owned by CakeDefi.
Who is CakeDefi?
Behind the CakeDefi project are CEO and co-founder Julian Hosp and U-Zyn Chua. The Cake team now comprises more than 30 employees and is headquartered in Singapore. Founded in 2019, the company has developed massively since its launch and is growing by several hundred customers every day.
How do you earn cryptocurrency at Cake?
So far, the Cake System offers 3 different sources of income. We present here the different forms with corresponding risks and opportunities:
When staking, you must first exchange your Bitcoin for staking or masternode-enabled altcoins. Currently, Cake offers DeFi, PIVX, DASH and ZCoin for this purpose. For a masternode, most coins require a minimum deposit of 1000. Cake collects these coins for its customers and forms a pool of masternodes.
The installation and operation of the masternodes is taken over entirely by the company. For the operation, the company takes a part of the return. The risk here lies in the altcoins themselves. If a coin becomes less valuable, the deposit equally loses its value. Of course, there is also a risk from hacking. Masternodes is an exciting way to earn Coins, but should be operated on a longer term. Quick investments with extremely high returns are certainly not made here.
In liquidity mining, you provide capital for trading between currency pairs on decentralized exchanges. For each trade, customers of the exchange have to pay fees. All collected fees are distributed to all liquidity providers at defined times. You have a so-called impermanent loss risk with this type of crypto investment, which you can calculate on this calculator. The risk is relatively high, but returns of over 100% are possible here. You should definitely look into the topic of liquidity mining before investing.
At Lapis, the customers’ money is collected in so-called batches and made available as capital for different areas in cryptospace. The risk with the batches is significantly lower than with liquidity mining, but here a maximum return of 5-10% per year is possible. Especially for cautious investors, we rather recommend Lapis instead of Liquidity Pools.
We have invested in all 3 systems on a test basis, we are staking DFI tokens, have shares in the liquidity pool and have also deposited Bitcoin in Lapis. So far we can’t report anything negative. The system is very easy to use and offers no real technical hurdles, especially for beginners. Especially the topic of Defi and Liquidity Providing is usually a bit complicated for beginners due to wallets like MetaMask. You could describe CakeDefi as a beginner platform, but you end up paying a bit more fees for this.
The platform has a very playful design and is infused with a kind of gamification approach. Cakedefi definitely makes crypto investing fun. So far, we have not seen a platform where these types of investment were so easily possible.