The startup launched its venture arm earlier this year with $100 million in committed capital to back innovative projects in the Web3.0 ecosystem.
Cryptocurrency investment platform, Cake DeFi has released its operational highlight for the second quarter (Q2), showing the startup has impressive growth milestones despite the crypto winter that ensued during that time.
As shown in a press release shared with Coinspeaker, the platform reported average weekly growth of 3.25% in the second quarter. The quarter came off as the strongest quarter thus far for the company in terms of user growth, funded accounts, and payouts. As reported, Cake DeFi said it paid out a total of $58 million, a figure that brings the total payout to $375 million.
The recorded growth on the Cake DeFi platform was fueled by quite a number of reasons including the improving system upgrade it implemented. Cake DeFi has switched its Know Your Customer (KYC) procedure to an automatic model. This revamped KYC has an approval timing of just 3 minutes on the mobile phone, making it more efficient, and convenient to use for its users across the board.
Cake DeFi was founded in 2019 and is licensed by many regulators including the Monetary Authority of Singapore (MAS) and the Registrar of Legal Entities of Lithuania. As a compliant investment platform, it has also joined the Coinbase Trust, cementing its pathway as a Financial Action Task Force (FATF) compliant outfit.
Cake DeFi is so focused on its product offering which is primarily centered around Liquidity Mining, Lending, and Staking. On the Cake DeFi platform, users can also access Freezer and the recently-launched Borrow products. Drawing on its compliance and licenses across the board, the startup hopes to deepen its roots as a one-stop platform for consumers to easily access DeFi services such as staking, lending, borrowing, and liquidity mining.
Cake DeFi and Divestment
For Cake DeFi, there is a robust capital and liquidity base that can sustain it well beyond the current crypto winter. As the platform highlighted, user’s funds, which are up to $1 billion, are typically kept separate from the operational funds, and this helps to bring more transparency.
While competing platforms like Celsius Network, Voyager Digital, Vauld Group, and Babel Finance amongst others are currently crumbling, Cake DeFi says it has enough reserves that can help it get by for the next four years. For a platform that is plying its trade in a time of both macroeconomic and digital currency devaluation, this can be tagged as an impressive outlook.
Despite this, the startup has chosen to prioritize its divestment program. Per the performance report shared, it said it will invest $15 million dollars into some decentralized assets such as dTSLA, and dTLT amongst others. The company said these assets have good upside potential, and that it will be transparent with the investment with the members of the public.
The startup launched its venture arm earlier this year with $100 million in committed capital to back innovative projects in the Web3.0 ecosystem.
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
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