Passive Income: 70% Returns With Cake DeFi | by Maximilian Perkmann | Apr, 2022

Photo by Tasso Mitsarakis on Unsplash

As you for sure know, there are several ways to earn money with your crypto holdings passively. One of them is staking, for example via Cake DeFi.
Cake DeFi is a Decentralized Finance platform that aims to provide a toolset to generate cash flow or returns on your staked crypto portfolio. This is done with the Cake platform (currently) in three different ways, called lending, staking, and liquidity mining.

Originally, Staking was a quite technical mechanism that CakeDefi now leverages to open it up for a broader audience. With platforms like CakeDeFi, also private investors with limited resources and no technical expertise can participate.

Bake cash flow with crypto while you sleep. cakedefi.com

Cake DeFi is registered as well as operated from Singapore and is fully compliant with all regulatory requirements of the Monetary Authority of Singapore (MAS). Cake DeFi aims to inform and educate people around the world about crypto and DeFi in a simple, easy-to-understand, and straightforward way.

Cake DeFi offers the easiest-to-use and most transparent products and services offering high returns for both beginners and experienced investors. cakedefi.com

Cake DeFi provides several ways to make your cryptocurrencies work for you and generate passive income. Let us have a closer look at Staking.

What is Staking?

Proof-of-stake is the process of putting coins or tokens into so-called nodes to verify transactions for cryptocurrencies that use a proof-of-stake consensus mechanism. Staking is a cheap and energy-saving alternative to the conventional proof-of-work with the computationally intensive mining that comes into play in the Bitcoin blockchain. The staking concept was first introduced in 2012. Sunny King and Scott Nadal presented the peer-to-peer cryptocurrency Peercoin.

Staking Returns cakedefi.com

Since then, many other cryptocurrencies have implemented this staking approach into their systems. Proof-of-stake is used to ensure the security of the network, validate transactions, and ensure the trust of participants via technical means.

Grab your free 30$ and 70% APY now*

Crypto Staking is similar to receiving some interest income on your bank accounts. Similarly, Cake Defi lets you store your coins in a wallet for a longer period. The more you stake, the more rewards you get. It was the reward for the proof-of-stake (PoS) consensus algorithm.

And do not forget: The longer you are staking, the greater the interest-rate effect becomes.

Staking returns vary significantly from coin to coin. In general, the longer a cryptocurrency has been around, the lower the returns. This can be seen as an analogy to Bitcoin halving (a reduction in the rate of issuance implemented in the code), as there are often halvings (an intentional reduction in the rate of return) as with Bitcoin.

It should be noted that staking is not a consensus algorithm of Bitcoin, but other cryptocurrencies. If you want to use staking as a source of income for your investments, you need coins in which proof-of-stake is applied and staking is offered.

If you plan to use Cake DeFi, you can use the following link to receive a 30$ bonus upon your first deposit. I am using it for a while now and can recommend it.

Sign up and receive 30$*

CakeDefi Signup*

Cake DeFi launched in early 2019 as a company dedicated to solving peoples financial problems. Currently, Cake DeFi is one of the fastest-growing blockchain startups in the Asian market and has over 100,000 customers worldwide.
The founders of Cake Defi are Dr. Julian Hosp and U-Zyn Chua. Each of them has a very impressive background and substantial experience.

When using Cake DeFi, the cryptocurrency DeFiChain (DFI) could be interesting. At the time of writing, one would earn over 34% in annual returns when staking DFI.

Cake DeFi returns cakedefi.com

Besides staking, Cake DeFi has another way to get solid returns of up to 8% per year. With the so-called lending, you lend money to major crypto exchanges. Trusted partners like Genesis, Signum, or Sparrow cover the risks and also guarantee the returns that Cake DeFi pays out to you.

Sign up and receive 30$*

With a bit more risk, users can also receive up to 100% annual returns with Liquidity Mining. In liquidity mining, you provide liquidity to a decentralized exchange, enabling decentralized trading. In return, you receive a portion of the trading fees and a share of the block distributions based on your share of the liquidity pool. According to empirical data, the expected returns have so far been significantly higher than the potential loss.

Liquidity Mining cakedefi.com
  • Additional return on cryptocurrencies in all market phases
  • Cash flow from cryptocurrencies
  • Diversification of crypto holdings across multiple wallets & platforms
  • Platform or issuer risk or project risk, as you do not have the private key for the coins you hold, i.e. if Cake DeFi disappears/is not accessible/hacked (or similar), you will probably not have access to your coins/cryptocurrencies.
  • Errors or bugs in the code of the DeFi chain (the so-called smart contract risk).
  • There is also a relatively complex liquidity risk, where the currency pool shifts unfavorably during liquidity mining such that a minus return is generated. This risk is referred to as impermanent loss.
  • Regulation risk

All risks have in common that in extreme cases they can lead to a total loss. IT is possible to lose parts or even all of your deposited crypto holdings.

Ive gone through the DFI Learn academy and I think it provides a great summary of Defi, DFI, and the DeFiChain:

DeFiChain is a blockchain dedicated to Native Decentralized Finance for Bitcoin. Native Decentralized Finance or #NativeDeFi means that the DeFi applications on DeFiChain are built directly on the blockchain, ensuring the highest level of security standards and a greater resistance to hacks. DeFiChain is a fork of Bitcoin, meaning that its core development started off from the same secure, well audited and robust code base as Bitcoin. As a result, DeFiChain has good synergy with Bitcoin to continue to have seamless integration of decentralized finance applications with the Bitcoin blockchain. Though DeFiChain is a Bitcoin fork, the blockchains consensus is ensured through a hybrid of Proof of Stake and Bitcoins Proof of Work. This means that everyone can participate in securing the blockchain and earn block rewards!

DeFiChain already has decentralized trading functionality live and working, with lending and borrowing, as well as asset tokenization coming in Q3 2021. Soon youll be able to buy Tesla, Apple and more directly on the blockchain in a decentralized way!

Two of DeFiChains most important applications are Staking and Liquidity Mining, which offer returns of up to 62.7% per year.
Liquidity Mining is not part of DeFiChains consensus algorithm, but serves the purpose of providing liquidity for the decentralized exchange. In return, liquidity miners get block rewards, making it a very lucrative endeavour and a win-win for everyone involved. DeFiChain Staking currently offers 34.81% annual yields, with a stable coin price that correlates closely with Bitcoin due to the high liquidity on the Decentralized Exchange (DEX).

DeFiChains Decentralized Exchange (DEX) is the cornerstone of most decentralized financial applications in the DeFiChain ecosystem. Unlike most other decentralized exchanges, such as those built on Ethereum, DeFiChains DEX is not a website which itself represents a centralized, vulnerable party but rather an open-source, publicly available app that can be run by anyone. Because its decentralized, it also cant be shut down by a centralized institution.

The coin powering all transactions and trades is DFI, the native digital coin of DeFiChain. Since its launch, the DFI coin has increased by more than 15x, offering more than 29.5% yearly returns, and proving to be relatively stable even in bearish market conditions. cakedefi.com/learn

A nice bonus: for each completed lesson, Cake DeFi currently grants rewards in form of DFI.

Start Learning & Earning NOW*

A major point of criticism of Cake DeFi is that the platform is run by a centralized company. Still, the transactions like loans and liquidity mining are done on the decentralized exchange, on the DFI chain and one can even use the Defichain without Cake DeFi. It just requires a bit more technical know-how. Also, the fact that it is run by a centralized has some upsides: the convenience and ease of use that a centralized company can offer.

I use staking as an opportunity to diversify my investments. I only allocate a portion of my crypto assets to staking. For users of CakeDefi, another risk may involve buying a cryptocurrency just because it pays high returns and not because it is a sustainable project. Usually, staking revenue is paid in the same cryptocurrency. This means, when the price drops to zero, the passive income will be worth nothing as well.

Sign up and receive 30$*