What is Cake DeFi?
Cake DeFi is a proof-of-stake blockchain and an independent project built on bitcoin blockchain. It was founded by Julian Hosp and U-Zyn Chua in Singapore in June 2019. A platform designed to allow users to invest and get cashflow from their cryptocurrencies. Cake is based on the DeFi blockchain associated with DFI coins which is the base currency.
Cake DeFi bring opportunities to earn passive income. You can participate in the following:
1. Liquidity Mining
2. Staking
3. Freezer (Freeze your pairs or DFI token to benefit from bonus APY)
4. Lending
Liquidity Mining
Liquidity mining is a decentralized finance mechanism in which participants contribute some of their crypto assets to various liquidity pools in exchange for tokens and fees.
Liquidity mining has proven to be extremely popular among investors because it generates passive income, which means that you can profit from cryptocurrency liquidity mining without having to make active investment decisions along the way. Your total rewards are determined by your participation in a liquidity pool.
Cake DeFi offers cryptocurrency pairs and decentralized asset pairs. These assets gives higher returns but more risky compared to staking.
Staking
Staking crypto currencies involves in holding your crypto assets to help blockchain network and support transactions. To participate in Cake DeFi Staking, there are two tokens available for staking – DFI or DASH tokens. By staking your tokens (DFI or DASH) allows you to earn DFI rewards as an interest in holding your tokens.
Staking participants are plays an important part in the network’s security infrastructure, acting as validators.
Freezer
This is added feature where you can earn extra bonus APY by locking your tokens or pairs. You can lock your assets up to 10 years max. By locking your assets your will get extra APY, the longer you lock your asset the higher the bonus APY (refer to the image below)
Lending
Crypto lending is a type of Decentralized Finance in which investors lend their cryptocurrencies to various borrowers. In exchange, they will receive interest payments, also known as “crypto dividends.” Earn rewards by locking your cryptos. Cake DeFi is accepting BTC, ETH, USDC and USDT.
If you are looking for guaranteed returns, then lending will be an option with a potential to get bonus.
How much passive income will you earn on Cake DeFi?
If you are wondering how much will you earn on Cake DeFi, here’s my personal earnings to give you an idea on what to expect how much you will earn on weekly or in a monthly basis. For this example, the allocation of assets are divided into Liquidity Mining and Staking (and the use of Freezer to get additional bonus APY). The DFI rewards from the Liquidity mining pairs is auto compounded in DFI staking.
Liquidity mining composed of four pairs and the remaining DFI token in staking. See below breakdown.
Here are the assets breakdown
*Note that asset value depends on the price of current BTC or the coin market price.
BTC-USD chart for reference
1. Liquidity Mining
It has four pairs one from cryptocurrency pairs BTC-DFI and three pairs from decentralized assets dPBD-DUSD, dTSLA-DUSD, DUSD-DFI
2. Staking
DFI staking with 38.9% APY as of this writing
3. Freezer with additional APY bonus
Staked DFI and other pairs are freeze for long term to maximize returns (the below example shows 5% to 57% Bonus APY)
Weekly and Monthly Income in Cake DeFi
With all the assets combined using liquidity mining, staking and the freezer bonus APY, below is the current asset allocation setup.
* Note that these figures are not fix income, it may vary depending on the pairs APY and staking APY as shown in the image below and we also have to consider the price fluctuation of each token.
Cake DeFi December Earnings 2021
Since mid December, there’s no deposit done on this account.
Weekly Cash Flow
Dec 20 to 26, 2021
Staking – USD 3.79
Liquid Mining – USD 139.44
Dec 27, 2021 to Jan 2, 2022
Staking – USD 3.47
Liquid Mining – USD 121.83
Total December 2021 Cash Flow
Staking – USD 12.06
Liquid Mining – USD 296.20
December total cash flow closes 308.26 USD
Looking at the earnings above, weekly cash flow varies the income is affected by 1. crypto price or token price, 2. pairs APY, 3. staking APY and the freezer bonus APY.
If you want to try Cake DeFi, use this link and get your $30 signup bonus.
*Disclaimer: This is for information purposes only and is never intended to be financial investment advice.
