Cake DeFi’s “Borrow” product allows customers to use their crypto holdings as collateral to borrow funds that can be used for purchases or to invest in passive income opportunities.
Cake DeFi, a Singapore-based regulated decentralised financial services platform that focuses on making decentralized finance (DeFi) easily accessible to the masses, has introduced a new product that gives users the opportunity to maximise their crypto portfolio returns.
The platform’s Borrow” feature allows DeFi users to use their crypto holdings as collateral when borrowing Decentralised USD (DUSD).
Crypto holders can then use the borrowed funds to purchase items or invest in opportunities from which they can generate passive income.
“We are excited to launch Borrow to provide users with more liquidity to invest in DeFi services while holding on to their assets. DeFi empowers people to generate passive income on their cryptocurrencies without the constant need to trade,” said Dr. Julian Hosp, the co-founder and CEO of Cake DeFi.
“It is our goal at Cake DeFi to keep bringing such innovative services to our users,” he added in statement shared via a press release on Thursday.
Borrow with BTC, ETH or supported stablecoins as collateral
According to Cake DeFi, customers can use their Bitcoin (BTC), Ether (ETH) and stablecoins Tether (USDT) and USD Coin (USDC) as collateral.
Also available is DFI, which users can combine with any of the other supported coins to offer as collateral- with the requirement being that DFI forms 50% of the combination.
Crypto investors can leverage the borrowed funds to invest in passive income-generating opportunities such as lending, staking and liquidity lining. Cake DeFi offers these products, which can offer 70%+ APR.
Customers earned $32 million in March
The “Borrow” feature comes to Cake DeFi following a year of exponential growth for the fintech startup.
In 2021, the platform dished out $230 million in rewards payouts to customers, with $75 million of that in Q4 only. In March 2022, the earnings stood at $32 million.
There are over 400,000 users on Cake DeFi, with users’ assets currently locked on the platform at $1 billion.
As the DeFi sector looks to bounce off a lackluster start to 2022, the startup hopes demand from new investors will help push its customers’ assets to $10 billion by the end of the year.