After the DeFi bloodbath, can Cake DeFi offer refuge?

By:
on Jun 14, 2022
Updated: Jun 15, 2022
  • Amid the ongoing bloodbath, Cake DeFi reasurres users that its protocol is sound and resilient
  • Cake DeFi is governed by stringent rules and laws of Singaporean authorities
  • Cake DeFi is leading the way in terms of transparency and disclosure

Amid the looming risks of global recession and inflation in the US hitting a 40-year high, hundreds of billions of dollars have been wiped out from the cryptocurrency market in the previous two days.

Meanwhile, Bitcoin (BTC) tumbled to December 2020 levels and fell to an 18-month low of $20,950 on 14 June. Moreover, the entire massacre prompted severe concerns in the market, and the global crypto market shrank under $1 trillion and hit $951 billion, a level last witnessed in January 2021.

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In the second week of May, Terra (LUNA) and sister stablecoin UST entered a downward spiral, and both the coins lost a massive chunk of their value as the algorithmically-designed UST lost its peg to the USD.

After the devastating failure of the biggest DeFi project by market size, investors were startled about the future of DeFi and began pulling off the markets.

While the market was getting a grip on the Terra bloodbath, Celsius (CEL), another top DeFi protocol, unleashed another bomb on 13 June by declaring total suspension on all withdrawals, swaps, and transfers between accounts indefinitely.

Meanwhile, market participants are searching for a glimmer of optimism to keep sailing. Cake DeFi, a Singapore-based DeFi platform, has aced the timing brilliantly in restoring the lost trust in this deteriorating market, especially for the DeFi community.

In the latest announcement, Cake DeFi reassured its users and said: 

“First and foremost, we want to reassure our customers that the current market conditions have little or no impact on Cake’s daily business. As usual, we are processing 99% of all withdrawals within 24 hours, even though some can take up to a maximum of 72 hours. In such uncertain times, exceptional service is of even greater importance. We therefore are working even harder than usual to ensure our services are working seamlessly.”

At a time when market participants are battling a worldwide crisis, liquidity issues, and uncertainty, Cake DeFi’s message is a stern reminder that DeFi is more than merely Terra or Celsius, and platforms like Cake DeFi are its guardians.

But what really sets Cake DeFi apart in these situations is its ability to remain agile. Let’s learn how.

Cake DeFi : A glimmer of hope for DeFi users

Cake DeFi is a Singapore-based platform for staking, lending, and liquidity pools that allows users to deposit and receive returns on various tokens.

Cake DeFi, despite its “DeFi” moniker, is a custodial platform that provides a range of DeFi-centric functionality. Cake DeFi provides three core products: loan, liquidity mining, and staking. Each of these activities yields a different rate of return and has specific conditions.

Now, the following traits distinguish Cake DeFi and give it an advantage over its competitors:

Governed by Singaporean Law

It comes as no surprise that Singapore is among the nations with the most stringent rules and clearest regulations. For those unaware, chewing gum is illegal in Singapore to prevent littering troubles, and first-time offenders face fines of up to $1000, with harsher penalties for repeat offenders.

A nation that takes the issue of littering so seriously is more likely than not to have stringent money-related protocols in place. 

Consequently, Cake DeFi maintains a distinct separation between consumer assets and running accounts. Simply said, users have complete control, ownership, and power over their funds, in contrast to the doomed Celsius Terra.

Complete disclosure and transparency

The lack of transparency and accountability hinders the present standing of the DeFi ambitions.

For instance, platforms such as Celsius, Binance, and Crypto.com could be compared to a “black box” that provides minimal transparency and control to third parties.

As a result, consumers lack clarity and knowledge about where yields are obtained or, worse, if their funds are mixed with operating funds.

Cake DeFi excels by only functioning as an agent or intermediary for its services. Cake DeFi provides a decentralised platform where users can access all its services with customer and community assistance.

Cake DeFi allows its consumers complete transparency about all transactions, yields, master nodes, and other pertinent data.

Making the difference with social contributions

Earlier this year, Cake DeFi announced in a press release that it would give $1 million to Environmental, Social, and Governance (ESG) initiatives and local CSR programmes to promote a sustainable DeFi environment.

This year, Cake DeFi will collaborate with SportCares to provide vulnerable individuals with the chance to experience and appreciate the benefits of sports through boosting self-confidence and enhancing their outlook on life.

Can Cake DeFi climb to the top?

When the current market cycle ends, the bulls will return, and everything will start to recover. Nonetheless, there will be one distinction. There will be fierce competition among DeFi platforms to reach the top.

Historically, the key to success has always been a sound business plan paired with robust laws and social welfare.

Are you relating? Currently, it seems like Cake DeFi has discovered the perfect recipe and is adding its own flavour to make it more appetising.

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