Cake DeFi: Providing Full Control, Ownership, and Authority to Customers

Cake DeFi reassures clients that their business continues to run smoothly despite the market crash.

The DeFi space is facing a sharp drop in valuation amid concerns over the Celsius suspension and the Lido-staked Ethereum (stETH) de-pegging. Data from aggregator DeFi Llama shows that the total value locked into DeFi shrank by nearly 20% in the last 48 hours, to a one-year low of US$79 billion. A mix of factors is influencing FUD in the DeFi space. Celsius' recent suspension of withdrawals stemmed from the de-pegging of stETH from Ethereum (ETH). After the insolvency of Celsius rattled the cryptocurrency world, Cake DeFi issued a statement to quell customers' fears. The Singapore-regulated firm said the current market conditions have little or no impact on its daily operations and explained why Cake DeFi's business is immune to the events impacting the crypto lender.

Transparency is the Key

Explaining what actually sets them apart from Celsius and other competitors, Cake DeFi said it's transparency and regulation.

"Transparency is core to our business and how we operate. As a Singapore-based fintech company, we have to ensure clear asset segregation whereby customers' assets are kept separate from the company's operating accounts. Simply put, our users have full control, full ownership, and full authority over their funds," the company said.

Notably, Celsius uses capital deposited in its platform to fund its own investments and cover loans it makes to other clients. Celsius, in return, pays users up to 30% interest weekly. With the extreme market conditions, the potential returns that Celsius can earn on its investments have diminished. This jeopardizes the liquidity of its business model.

While Celsius has not been as transparent as its community wants it to be, Cake DeFi acts as an agent or an intermediary for the services that it provides. What does it mean? It means that Cake provides users a "safe passage" or access to decentralized finance (DeFi) services: these services are all on the blockchain and are fully accessible to anyone and fully transparent. Technically, customers can make such transactions on the blockchain themselves. What Cake DeFi offers is a one-stop platform where people can access all these services at a single point with customer and community support.

Not just that Cake DeFi also provides transparency on all transactions, yields, masternodes, and other information that would be valuable to its users. "This is our promise to our customers – and how they continue to trust us with their funds", says Cake.

What else makes Cake DeFi stand tall?

Other DeFi platforms such as Celsius, Binance, and Crypto.com have a sobriquet "black box" which means they provide limited transparency and/or control to other entities other than themselves. As such, users wouldn't have clarity or information on things like where the yields are being derived from or – worse – if their funds are being commingled with operational funds.

As crypto investors continue to deal with the challenges of a volatile crypto market, Cake DeFi believes that crypto companies should up the ante in terms of providing both assurance and protection to their users and their hard-earned money. Providing transparency and protection is not only an obligation for them: it's a must.

Receiving a Cryptocurrency License

Recently, Cake DeFi received a cryptocurrency license from the Registrar of Legal Entities of Lithuania. It authorizes the platform to conduct services for exchanging cryptocurrency and providing and administering cryptocurrency custodial wallets in Lithuania.

This will facilitate Cake's cryptocurrency registration and authorization in other European Economic Area (EEA) member states and for future conversion into an EU-wide cryptocurrency authorization when the EU Markets in Crypto-assets (MiCA) Regulations become effective. Set to go into effect in 2024, the MiCA framework will grant passporting rights for crypto licenses that fulfill the terms of the framework.

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.