The latest invention of the Singapore-based fintech firm, EARN allows users, mainly conservative investors, to generate returns via a single-sided liquidity mining service while offering protection against market volatility.
It is no secret that digital assets have grown in popularity among the broader financial community, and a typical diversified investment portfolio with a good rule of thumb will include cryptocurrency holdings worth 5% to 10% of the entire portfolio.
However, with the entire crypto market recently losing a chunk of its market value, up to $2 trillion since the peak in 2021, as well as the impending high inflation, both experienced and new investors are beginning to take a more conservative stance, even as they continue to diversify their investment portfolios into digital assets.
Speaking on the need for EARN, Cake DeFi’s Co-Founder and CEO, Dr. Julian Hosp, claimed that the firm’s latest product was launched to address today’s market needs.
“With the crypto winter settling in, investors have become increasingly risk-averse, especially since several Centralized Finance (CeFi) platforms have become insolvent or are facing liquidity issues,” Dr. Julian explained.
More so, as a hybrid protocol combining the attributes of a Centralized and Decentralized Finance (CeDeFi) platform, Cake DeFi’s primary objective is to provide its users with good yields on their crypto investments while ensuring complete transparency.
Buttressing that, Dr. Julian said, “EARN will allow users to get unbeatable returns on Bitcoin, which they can track transparently on the blockchain. The Volatility Protection feature will also protect them against impermanent loss, especially in such times of market volatility.”
Cake DeFi is currently positioning itself as a fully-transparent product that is built solely to help users generate a competitive return regardless of any hindering such as market volatility and impermanent losses.
For instance, users can allocate either Bitcoin (BTC) or DeFiChain (DFI) to receive rewards in the native coin every 24 hours, at approximately 10 percent annual percentage yield (APY). While returns are allocated in EARN, the platform’s native asset, it will be autocompounded to generate even greater yields in the long run.
In addressing market volatility concerns and the potential impact on users’ funds, EARN employs a Volatility Protection feature to protect various factors that could trigger price slippage, including impermanent loss, thereby covering potential losses should crypto prices fluctuate drastically.
Like Cake DeFi, EARN also combines the attributes of two entirely different products – the high yields of liquidity mining and the low volatility that is typically associated with crypto lending.
Given its uniqueness, the newly launched product can provide potential users with a novel approach to generating cash flow from allocating existing crypto assets with no counterparty risks and protection against impermanent loss. Users will equally enjoy full transparency across their investments as they are allocated directly on the DeFiChain blockchain.
The latest development is yet another milestone achievement for Cake DeFi, which has achieved tremendous growth in recent years. The fintech firm has seen its strongest quarter yet in Q2 2022 regarding customer acquisition, funded accounts and payouts, as disclosed in its latest Q2 2022 Transparency Report.
Despite the negative market outlook, CAke DeFi has just surpassed 1 million customers and has paid out a total of US$375 million in customer rewards as of Q2 2022. In the immediate future, the fintech firm aims to continue growing its customer base while promoting financial inclusion to make DeFi more accessible to consumers and enterprises alike.
About Cake DeFi
Cake DeFi is a fully transparent, highly innovative fintech platform dedicated to providing access to decentralized financial services and applications by enabling users to generate returns from their crypto and digital assets. It is operated and registered in Singapore and is subject to applicable laws and regulations in Singapore.
By enabling and empowering its users to harness the potential of DeFi, Cake DeFi aims to educate and inform people around the world on crypto and DeFi in a simple, easy-to-understand and hassle-free manner.