More crypto platforms are suspending withdrawals of funds, with “fear, uncertainty and doubt” (FUD) mounting within the crypto space amid a crypto market crash. It is therefore imperative for us at Cake DeFi to reiterate facts and information on how we continuously strengthen our efforts in maintaining the trust and confidence given to us by our valued customers.
How exactly do we practice transparency at Cake DeFi? What are the platform features and protocols for transparency and security? Are user assets really being allocated in their chosen and preferred services?
Read this article and find out.
If you have been following our official social media accounts or our blog, then you can attest to the fact that we have been active and consistent with sharing information on how our company remains financially strong, abides by existing regulations, keeps our platform secure and transparent, ensures assets segregation and – all in all – differ from our competitors.
Though many would consider this sufficient, we take it up a notch by also providing information on why we have currently integrated the best aspects of the Principal-Agent-model into our business structure and the benefits thereof.
Black’s Law Dictionary (1999) defines a principal as someone “who authorizes another to act on his or her behalf as an agent.” For example, if you own a small business and hire an outside contractor to complete a service, you enter into a principal-agent relationship.
How does this apply to Cake DeFi as a service provider? Simply put, the DeFi services that are made available on our platform are not created by us. We simply aggregate these services and act as a middleman whose sole purpose is to provide crypto investors easy access to these same services.
It is the exact opposite for most of our competitors. Platforms that act as principals, such as Celsius or BlockFi, tend to be not so transparent with how they allocate user funds and can be likened to a “blackbox” whose internal dealings or activities are hidden from external entities.
That said, we agree that it is due to poor risk management that has led many crypto companies or platforms to now face the consequences of what many would now consider risky investments such as Luna and UST. And the worst part? Their customers must also bear the burden – in one way or the other.
This is why we have always been focused not just on building trust with our clients but – and perhaps more importantly – maintaining it by constantly improving the features and protocols of our platform.
So, how exactly do we provide or ensure transparency and security? Let’s run through our platform features and protocols one more time.
On the other hand, users of our Staking service benefit from the fact that masternode status and masternode rewards (which includes information on transaction IDs and node addresses) are highly transparent.
Why are these important? The answer is simple: as crypto investors ourselves, we know that it is important to ask questions such as “Where exactly are the nodes?” or “Am I getting paid from actual rewards?” to avoid falling victim to ponzi schemes and other scams.
With much confidence, we can say that our users will never have that kind of uncertainty or doubt when using our platform.
Users’ staking activities and / or reward payouts are also highly transparent. Also, user assets that are being staked are mostly held securely in cold wallets (which means they are not connected to the Internet).
Similarly, those who use our Liquidity Mining service benefit from the fact that their assets are deposited and locked in liquidity pools on DeFiChain.
A valuable external tool that Cake Users may use is DeFiScan – which provides transparent information on the latest transactions and blocks, liquidity pools, vaults and others.
In addition, if users deposit bitcoin or ethereum into our platform and allocate them into our Staking, Liquidity Mining or Borrow service, a 1:1 copy of these assets are created on DeFiChain. Once again, backing addresses are available and can be cross-checked via DeFiScan (for bitcoin) and a Bitcoin Explorer like Blockchain.com.
Information on total assets allocated, on the other hand, are available for all users to see individually for themselves. The same can be said about individual deposits and withdrawals.
You may view these information by simply going to your “Balances.”
In addition, you may go to “Transactions” to have full information on your incoming and outgoing transactions.
Finally, for real-time information on whether our services are up and running, you may visit our status page anytime. You also use this page to monitor if DFI staking rewards are operational and for a transparent record of platform incidents.
Also, users may view all of our transparency features, protocols and reports from our transparency page.
If you want to use our services but are not yet a registered Cake DeFi user, you may click here to sign up and start generating passive income while benefiting from these features and protocols.
You will get US$30 worth of DFI when you register successfully and make a deposit of US$50 or more, and allocate the amount for at least 28 days into either our Lending, Staking Freezer or Liquidity Mining Freezer service.
So, sign-up now and start “baking” passive income with us in a transparent and secure manner!