Cake DeFi’s new Earn is a hybrid product dedicated to conservative investors
Cake DeFi, a renowned fintech company that provides easy access to decentralized finance (DeFi), today announced the launch of EARN – a new addition to its portfolio of fintech products and services.
The Singapore-based fintech company’s latest invention, EARN allows users, primarily conservative investors, to generate returns through a one-sided liquidity mining service while providing protection against market volatility.
It’s no secret that digital assets have grown in popularity within the wider financial community, and a typical diversified investment portfolio with a good rule of thumb will include cryptocurrency holdings worth from 5% to 10% of the entire portfolio.
However, with the entire crypto market recently losing some of its market value, up to $2 trillion since peaking in 2021, as well as high inflation looming, experienced and new investors alike are beginning to embrace a more conservative stance, even as they continue to diversify their investment portfolios into digital assets.
Speaking on the need for EARN, Cake DeFi Co-Founder and CEO Dr. Julian Hosp claimed that the company’s latest product was launched to meet current market needs.
“With the crypto winter setting in, investors have become increasingly risk averse, especially as several centralized funding platforms (CeFi) have gone insolvent or are facing liquidity issues,” said said Dr. Julien explained.
More so, as a hybrid protocol combining the attributes of a centralized and decentralized finance (CeDeFi) platform, Cake DeFi’s main goal is to provide its users with good returns on their crypto investments while ensuring full transparency. .
Backing this up, Dr. Julian said, “EARN will enable users to earn unbeatable returns on , which they can track seamlessly on the blockchain. The Volatility Protection feature will also protect them against impermanent losses. , especially in these times of market volatility.”
Cake DeFi is currently positioning itself as a fully transparent product designed solely to help users generate a competitive return regardless of obstacles such as market volatility and impermanent losses.
For example, users can allocate Bitcoin (BTC) or DeFiChain (DFI) to receive rewards in the native coin every 24 hours, at around 10% annual percentage return (APY). While returns are allocated in EARN, the platform’s native asset, it will be compounded automatically to generate even greater returns over the long term.
To address market volatility issues and the potential impact on users’ funds, EARN employs a Volatility Hedging feature to protect against various factors that could trigger price slippage, including impermanent loss, thereby hedging potential losses if crypto prices fluctuate significantly.
Like Cake DeFi, EARN also combines the attributes of two entirely different products – the high returns of liquidity mining and the low volatility typically associated with crypto lending.
Given its uniqueness, the newly launched product may offer potential users a new approach to generate cash flow from existing crypto asset allocation without counterparty risk and protection against impermanent losses. Users will also benefit from full transparency over their investments as they are allocated directly on the DeFiChain blockchain.
The latest development is another important milestone for Cake DeFi, which has seen phenomenal growth in recent years. The fintech company had its best quarter yet in Q2 2022 for customer acquisition, funded accounts and payments, as reported in its latest Q2 2022 Transparency Report.
Despite the negative market outlook, CAke DeFi just surpassed 1 million customers and paid out a total of US$375 million in customer rewards in Q2 2022. In the immediate term, the fintech company aims to continue growing its customer base while promoting financial services. inclusion to make DeFi more accessible to consumers and businesses.
About Cake DeFi
Cake DeFi is a fully transparent and highly innovative fintech platform dedicated to providing access to decentralized financial services and applications by allowing users to generate returns from their crypto and digital assets. It is operated and registered in Singapore and is subject to applicable Singapore laws and regulations.
By empowering and empowering its users to harness the potential of DeFi, Cake DeFi aims to educate and inform people around the world about crypto and DeFi in a simple, easy-to-understand, and hassle-free way.