Bitcoin and the entire crypto market are booming. Just a few weeks before New Year's Day 2021, the cryptocurrency stood at just under $20,000 US dollars and then shot far above that level within a very short period of time.
Many investors are now speculating on a further rise in the cryptocurrency's price. The big dilemma: It is practically impossible to find the "right" time to sell in order to actually realize one's profits.
Cake DeFi solves this problem with three product categories that allow you to achieve high returns on Bitcoin & Co. in a safe and simple way - without having to sell at all.
Cake Lending is our most popular product in the lineup. No wonder, because Lending offers sugar-sweet, juicy returns of up to 8% per year and that with virtually no risk, as you will learn in a moment.
Lending offers you the opportunity to benefit from the profitable and at the same time safe investment strategies, which for a long time were reserved for institutional investors only.
For example, returns are generated by lending to major crypto exchanges, which in turn provide them to their users for leverage and charge hourly fees for it. Other strategies, such as professionally selling call options to generate cash flow, are also used.
Best of all, the already very manageable risks (such as the bankruptcy of large, established crypto exchanges) are fully insured by trusted partners like Genesis, Signum or Sparrow. Furthermore, those companies also guarantee the returns that we pay out to you.
So Lapis is a product you can truly indulge in without any guilt!
Staking is the lightest fare in our offer.
Staking is a proof-of-algorithm that is used with various cryptocurrencies and secures the network - similar to PoW with Bitcoin.
The big advantage here is that not only is the concept more energy efficient and virtually as secure, but it also allows anyone to earn returns on their staked cryptocurrencies!
The only risk one is exposed to here is the unpredictable price movement of the underlying staked cryptocurrency itself.
Returns vary greatly from coin to coin. Generally, the longer a cryptocurrency has been in existence, the lower the returns will be. This can be seen as analogous to Bitcoin halving (a reduction in issuance implemented in the code). as there are often halvings (an intentional reduction in returns) as with Bitcoin.
By far our most popular staking coin at Cake is DFI - a cryptocurrency that has risen rapidly in recent weeks and months. Currently, you're getting a sugar-sweet 100+% staking yield on it!
Liquidity mining is the most exotic product you can find at Cake DeFi.
After you have informed yourself in detail about Liquidity Mining and the corresponding risks, a little taste might be worthwhile: Currently, you get over 100+% annual returns on most cryptocurrencies like Bitcoin, Ethereum or Litecoin!
Now, some of you might ask how such high returns are possible at all? The answer is simple: With liquidity mining, you provide liquidity to a decentralized exchange, in this case DeFiChain, and thus enable decentralized trading.
In return, you receive a portion of the trading fees as well as a portion of the block distributions based on your share of the liquidity pool.
The important thing to note here is that the expected returns are likely to get lower over time.The reason for this is simple: if more people want to provide liquidity, then everyone is competing for the same pie and thus everyone gets a smaller piece of it.
Also not to be underestimated is the risk of impermanent loss, which occurs primarily when one currency pair / coin pair falls or rises significantly more than the other. Learn more about liquidity mining, the potential returns and the risks involved in this article.
According to empirical data, the expected returns so far are significantly higher than the Impermanent Loss. Thus, liquidity mining at Cake is a treat that really fills you up!
We understand that choosing between the heartily prepared Lapis, the sugar-sweet Staking and the lush Liquidity Mining for true gourmets is not easy!
It's best to ask yourself: What is my risk tolerance and how much volatility can I tolerate? How much return do I expect from my investment?
Our recommendation to you: Treat yourself to a real 3-course-menu! It doesn't have to be Lapis or Staking or Liquidity Mining, you can have it all at once and adjust the ratios depending on your personal preference.
Are you more risk averse and want your safe 5-15% per year? Then try for example 85% Lapis, 10% Staking and 5% Liquidity Mining.
You don't mind higher volatility and you rather see your investment in the long term? Then you can also invest a slightly higher share in staking.
And if you want to go for the super high returns and hedge yourself at the same time, then you can reduce your Lapis share even further and go more aggressively into Liquidity Mining.
No matter how you use Cake, one thing is for sure: you won't get returns on your cryptocurrencies anywhere this simply, safely, and sincerely. Sign up for free today and get a $20 USD bonus on your first deposit at Cake DeFi!