Disclaimer: Please don't take this as financial advise. I'm simply a spare-time crypto enthusiast, not an investment professional or financial advisor. I put this article together to explain what and how I'm doing it for friends and family.
Intro to Crypto
This is not an introduction to Bitcoin and Blockchain—look elsewhere. Rather, this is my personal low risk, passively income strategy using Decentralized Finance (DeFi).
As the cliché goes, buy low and sell high … and as of April 2022 the market cap for crypto sits at just over $2.1 trillion, which is down from a high of $3.1 trillion in November of 2021. However, consider this—just one year prior, in November of 2020, the market cap first crossed $400 billion.
DeFi—Get at it or Get Left Behind
The crypto space is full of misconceptions, scams and rug pulls. For these reasons it is very easy for amateurs to make rookie mistakes, lose their digital tokens (coins) or give them willingly to a scammer with no practical means of recovery—speaking from personal experience when I was firsts learning to navigate the space.
It is just as easy to continually loose money on poor trades and on fees—on purchases, trades and sales that add up quickly. At the same time, holding random coins in your digital wallet, checking them daily and hoping for a 100X return isn’t much of a strategy.
Where Cake DeFi Comes In
Cake is a Singapore-based and operated company focused on providing cash flow from various crypto assets. Cake runs a decentralized finance platform that provides tools to generate returns on digital assets. Currently, the platform offers three different products—crypto lending, crypto staking, and liquidity mining (all except lending are explained below).
Before Cake, staking and mining were considered complex technical processes inaccessible to broader populations without access to large pools of capital. With Cake, investors with limited resources, without technical expertise can participate and earn on their crypto—with payouts every 12 hours.
Considering that banks are offering 0.5-1.5% on saving and retirement accounts are sitting at 4-6% versus actual inflation numbers currently at 7–10%, the returns offered by Cake of 30-120% are beyond very attractive and worth a serious look.
Disclosure: I have been personally using Cake to passively earn crypto by staking and mining and have been suggesting that my friends and family do the same rather than letting their cash and digital assets accumulate dust in their wallets. My assets are split between both and averaging over 50% annually.
You can try Cake with $100 the way I did—deposit $50, get $40 of $DFI by using code ✨ 046056 ✨ and earn another $10 for learning about #DeFi.
— — — — — — — — STEP-BY-STEP GUIDE BELOW — — — — — — — — —
Cake was founded in the beginning of 2019 by Dr. Julian Hosp and U-Zyn Chua to address several financial pain points and allows users to get cashflow from their cryptocurrencies in transparent, easy to use way.
Hosp is an influential specialist in the crypto industry with a large following around the world. Chua is a software engineer and blockchain advisor to the Singapore government.
Here is a two minute explanation of Cake directly by Julian:
The Basics First
DFI is the DeFi Blockchain (DeFiChain) native token. DeFi blockchain is a blockchain launched by DeFiChain Foundation to enable decentralized finance on the Bitcoin blockchain, without needing Turing-complete instructions.
In other words, DFI runs on a blockchain platform within the Bitcoin ecosystem, supported by a distributed network of computers and designed to facilitate fast and transparent transactions with as little hassle as possible for end users.
Passively Income with Cake DeFi
Cake provides two practical means to make your cryptocurrencies work for you and generate passive income. Let’s start with Staking—low risk.
What is Staking?
Staking enables cryptocurrency holders to earn passive income from their assets by providing liquidity and depositing them in protocols that support a proof-of-stake (PoS) consensus mechanism, where transactions are verified by validators instead of miners, as is the case in proof-of-work (PoW).
In other words, Staking is similar to interest earned on bank saving—Cake offers a service to deposit your coins in exchange for rewards earned in crypto. These rewards can be automatically compounded, moved or withdrawn.
Here’s Julian again with a slightly technical video explanation:
The more you Stake, the higher your rewards and the longer you Stake, the greater the return becomes. Currently, Cake offers Staking for DFI and DASH tokens and there are plans to add additional coins in the future.
What is Liquidity Mining?
Liquidity mining is a process in which crypto holders lend assets to a decentralized exchange in return for rewards. These rewards commonly stem from trading fees that are accrued from traders swapping tokens.
Julian once again with a another two minute video:
Liquidity Mining is more risky than Staking because users can receive a much higher rate of return—over 100% under certain circumstances. When you are Liquidity Mining, you are providing liquidity to an exchange to enable 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.
Difference between APR and APY
One last note on Liquidity Mining—returns are in APR rather than APY. While APR and APY may sound the same, they are quite different. APY is an annual percentage yield and takes into account compound interest, but APR, which stands for annual percentage rate, does not.
Take USDT-DFI, with an APR of 58.75%. Converted into APY and compounded weekly results in an APY of 79.36%.
What is the Cake Freezer?
Cake offer an additional product that boosts yields on Staking and Mining. By Freezing (locking up) your allocated funds you can get up to 200% the rewards by depending on length—from 1 month up to 10 years—for maximum returns. Rewards (as will the other products) can be compounded, moved or withdrawn.
The catch is that once assets are frozen, they cannot be taken out until the freezing period end. Frozen assets can not be moved, sold, withdrawn, transferred in any situation.
In other words, Freezing is permanent until the end of the selected period.
Beginner Step-by-Step Guide
1. Visit www.cakedefi.com and click Sign Up via the main menu. Follow the instructions and remember to use referral code 046056.
2. Click on the Baker’s Hat in the top right corner, select Profile and Settings, then select Identity Verification. You’ll need to upload a photo of your Passport, Driver’s License or Identity Card and a proof of address (depending on country) to complete KYC (Know Your Customer).
NOTES: Processing should take a few minutes, but can be longer and is required by most counties (including USA) to help against money laundering and financing of terrorist activities.
3. Deposit $50+ USD (in any coin) into either Lending (not available in USA), Staking or Liquidity Mining—selected from All Products via the main menu.
NOTES: Liquidity Mining is done is pairs (ie. Bitcoin + DFI) this means that in order to deposit into Liquidity Mining you will need to hold both digital assets in your wallet. Because Mining is more risky, requires an extra step and additional digital assets, I suggest depositing your first $50+ dollars into Staking.
IMPORTANT: To receive your $30-40 bonus the deposit must be $50 USD or more in one transaction. Multiple smaller transactions (for example $30 + $20 in 2 transactions) will not trigger the bonus. Because of potential price fluctuations and a small fee on the deposit I strongly recommend depositing $55–60.
4. Click on Freezer via the main menu. Select your asset (DFI Staking Shares), select Max (amount), and set the Length of Tenure to 1 month (or longer) and confirm that your selection.
5. Your bonus of $40 ($30 after April 25th 2022) will instantly be deposited into your wallet, Staked into DFI, and Frozen for 180 days to prevent abuse of the system.
6. Click Learn via the main menu and complete the “DeFiChain” and “Bitcoin” lessons to earn an additional $10 in DFI which are also instantly deposited into your wallet and Frozen for only 30 days.
Cake DeFi—Get at it or Get Left Behind
Find me on Twitter and Telegram
https://twitter.com/AirdropOffer365
You can try Cake with $100 the way I did—deposit $50, get $40 of $DFI by using code ✨ 046056 ✨ and earn another $10 for learning about #DeFi.
Disclaimer: Please don't take this as financial advise. I'm simply a spare-time crypto enthusiast, not an investment professional or financial advisor. I put this article together to explain what and how I'm doing it for friends and family. I am not responsible for any action taken or any financial losses as a result of your actions.
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