Cake DeFi Review – Is This Crypto Platform Legit?

Cake DeFi is a decentralized finance (DeFi) services provider headquartered in Singapore that specializes in ways to earn passive income with idle crypto assets.

The platform allows users to earn, stake, lend, borrow, and liquidity mine cryptocurrencies via its desktop or mobile app. However, many of its services are strictly accessible on the mobile app.

Unlike most DeFi platforms, Cake DeFi will require users to verify their identity before using any of its services. 

Still, the process is relatively quick, and the platform, overall, is incredibly user-friendly.

If you want to learn all about its services and whether or not a Cake DeFi account is right for you, stick around for this in-depth Cake DeFi review.

Cake DeFi Crypto Earning

“Earn” is a Cake DeFi service that allows users to participate in liquidity mining with just one cryptocurrency.

According to the platform, this single-sided liquidity mining service offers more stability and security than traditional liquidity mining.

Through this service, users can deposit and earn with a handful of digital assets.

The assets currently supported are USDC, BTC, the DFI token, and DeFiDollar (DUSD), which is a meta stablecoin index backed by Curve Finance LP tokens.

Yields for all the supported assets will be anywhere from 6-8%, rewards are paid out every 24 hours, and you can remove your deposited funds at any time.

Overall, the earn selection of assets is a bit limited, but the terms are agreeable, and the yields are high (but not suspiciously high).

Cake Liquidity Mining

In addition to the single-sided liquidity mining through the Cake DeFi earn, the platform also supports traditional (two-pair) shared liquidity mining pools.

There are seven major liquidity pools paired with DFI, such as BCH, USDC, BTC, LTC, USDT, ETH, and DOGE, with yields ranging from 9-19%.

It would have been nice to see options to mine popular coin pairs like USDT or USDC with any of the above assets, but the options are still decent.

Cake DeFi also has a little over 20 decentralized asset pairings with DUSD that pay anywhere from 8-24% APR, however, only a select few of those pairs may be available in your country.

Rewards for liquidity mining are paid out every 12-24 hours, and you can withdraw your funds at any time, but Cake DeFi charges a 15% fee on all rewards.

In short, Cake DeFi has very enticing liquidity mining yields and supports most of the major crypto assets, but it doesn’t have as many options as the average DeFi project, and everything is paired with DFI or DUSD.

Cake Crypto Staking

Cake DeFi only supports staking for three different assets: ETH, DFI, and DASH.

The yields for each asset are 6%, 16.3%, and 7.4%, respectively, with reward payouts roughly every 12 hours.

A unique feature Cake DeFi offers with its staking is the option to turn on auto-compound, which automatically stakes the rewards you make through staking.

While there aren’t many staking options, the supported assets work well, and the service itself is very easy to use.

Cake Crypto Lending

Cake DeFi’s lending supports four different crypto assets: BTC, ETH, USDT, and USDC.

The expected yield for BTC is 4% up to 0.01 BTC and 0.1% for any amount above that threshold.

The expected yield for ETH is 4% up to 0.1 ETH and 0.1% for any amount above that threshold.

The expected yields for USDC and USDT are 10% up to 200 USDC or USDT and 0.1% for any amount above that threshold.

Each lending batch is for seven days, and Cake DeFi doesn’t charge any fees for the service, but the lending isn’t available in every country (such as the United States).

All in all, the Cake DeFi yields are fairly high, and 7-day lockups are reasonable, but the thresholds for the higher yields are very low.

Cake Crypto Borrowing

The last of Cake DeFi’s services worth diving into is its crypto borrowing.

Cake DeFi allows users to borrow in DUSD by using crypto as collateral for the loans. The collateral options are BTC, ETH, USDT, USDC, or DFI.

Interest rates for borrowing can be as low as 0.5% APR.

You can repay the loan at any time, but the borrowing service is only available on the Cake DeFi mobile app. 

How Cake DeFi Compares to Competitors

The ideal platform to compare with Cake DeFi is likely Matrixport, given its similar services and connection to DeFi.

Cake DeFi has much simpler earning opportunities than Matrixport, but it has far fewer options.

Matrixport is somewhat of a DeFi aggregator insofar as it pulls a wide range of markets, pools, and investment vehicles across different protocols, but the number of options is a bit overwhelming.

There are honestly too many investment options on Matrixport to get into, but it has one of the most well-developed ecosystems in DeFi and even the crypto space more broadly.

That said, if you are newer to the space or prefer a simpler interface and platform, the Cake DeFi ecosystem will be a much more digestible option for you.

The abundance of choice may suit certain investors, so Matrixport is worth exploring for that reason, but simplicity is frequently a strength when it comes to investing, and Cake DeFi is much easier to navigate.

Conclusion: Cake DeFi Review 

After carefully walking through all of its services for this Cake DeFi review, we believe it is a very good platform for generating yield on crypto, but it probably won’t be super appealing to DeFi-focused investors.

The Cake DeFi platform is exceptionally user-friendly, has a decent amount of options for all its earning services, and appears trustworthy with its proof of reserves and transparency page.

However, the fact that Cake DeFi requires KYC verification to access any of its services makes it seem less decentralized than the Cake DeFi team suggests. 

If you are specifically after a decentralized platform, you will probably be better off with something like Uniswap, 1inch, Aave, or Curve.

Nevertheless, Cake DeFi has a robust suite of crypto services and very respectable yields that are worth considering.  

Any yield-generating platform that isn’t completely decentralized, transparent, and over-collateralized is on thin ice these days, so proceed with caution.

Nevertheless, Cake DeFi is a great option to generate cash flow with crypto and is certainly worth exploring if you are interested in passive crypto investing.