## What is Happening?

Cake DeFi has [paid](https://www.investing.com/news/cryptocurrency-news/cake-defi-records-317m-rewards-to-customers-in-q1-2022-2834346) around $317 million in rewards to its customers as of the end of Q1 2022 to become one of the fastest-growing DeFi platforms in Asia - Cake DeFi has seen business growth of 90% quarter on quarter since 2019! The next phase for Cake DeFi expansion is providing access to DeFi and Web3 offerings to institutional investors and companies through technology offerings that focus on cybersecurity and technological innovation, such as tokenized stocks and on-ramp and off-ramp fiat to crypto offerings for onboarding to the DeFi ecosystem.

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According to Dr. Julian Hosp:

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> It is our ambition to list Cake DeFi on a public stock exchange in the near future. We were offered a SPAC merger at US$1.5 billion but we had turned it down earlier in the year.

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:::info
**Vested Interest Disclosure**: *The author is an independent contributor publishing via our [brand-as-author program](https://sponsor.hackernoon.com/brand-as-author). Be it through direct compensation, media partnerships, or networking, the author has a vested interest in the company/ies mentioned in this story.  HackerNoon has reviewed the story for quality, but the claims hereon belong to the author. #DYOR*

:::

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 ![DeFi is eating the world](https://cdn.hackernoon.com/images/7rEmNIeHNFOBfZZtUMQerOZIGGH3-6nb3tw5.jpeg)

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## What is Cake DeFi?

Founded by a team of financial experts, Cake DeFi is an open and accessible, innovative platform that provides access to decentralized financial services and apps to retail and institutional customers. The company is registered and operated in Singapore (*the hub for fintech*) and is subject to the laws and regulations of Singapore.

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Cake DeFi strives to educate and teach people across the globe about crypto and DeFi in a simple, easy to comprehend, and hassle-free way. 

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Cake DeFi has been granted permission to provide and operate bitcoin custodial wallets and exchange services in Lithuania. By doing this, Cake DeFi will be able to register and be authorized as a cryptocurrency in other EEA member states and the EU when implementing the EU Markets in Crypto-assets (MiCA) regulations.

## Why Should you Care about Crypto Payouts?

DeFi products such as digital assets-based lending products or staking are an excellent way to earn passive income. However, it requires a considerable amount of research as it is a common consensus that generating passive income with cryptocurrency is a fantastic method to increase your net worth, but users also need first to assess their current financial situation, risk capacity, and way of life given that a lot of such products offer unsustainable returns or have bad cyber security which can lead to loss of capital.

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As a user interested in passive cryptocurrency, one would have probably heard that the best time to start saving is as soon as possible since it DeFi passive income products often require more market experience. With virtual assets upwards of US$1 billion in client assets and over a million registered users, Cake DeFi is one of such companies assisting both seasoned investors and those new to cryptocurrency and digital assets to profit from their investments through passive income focused DeFi product offering such as staking, digital assets based lending and trading in digital assets or tokenized stocks with more than $317 million in payouts - an excellent way to build passive income. However, first, for a user, it is critical to understand whether one should use DeFi products depends on their knowledge of the technology, risk capacity, goals, strategy and research.

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Due to this, it is critical for digital asset users to use services from established digital asset service providers with a good reputation and capital risk management procedures to minimize the risk of any black swan event. For example, Cake DeFi coordinates its business development and technological offerings with the Monetary Authority of Singapore’s (MAS) larger vision to develop Singapore’s crypto and decentralized ecosystem, with compliance as a design being its focus - this creates a reputation in the market with a focus on product integrity and sound risk management. The MAS has exempted Cake DeFi under the Payment Services (Exemption for Specified Period) Regulations 2019, which permits it to keep functioning in and from Singapore until the MAS processes its application for a licence to conduct digital payment token services. It is critical for users to do their research and determine whether the crypto companies are working with regulators hand in hand to provide services that are robust and trusted in nature with capital and risk management controls and procedures - *as regulations are not bad for DeFi!*

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 ![DeFi is the future of finance ](https://cdn.hackernoon.com/images/7rEmNIeHNFOBfZZtUMQerOZIGGH3-c0c3tsk.jpeg)

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With so many rugs pulls and DeFi products whose APY is not sustainable in nature. It is critical for crypto users to choose offerings that are transparent, open and compliant in nature - this means placing your trust in your research and determining whether the product offerings that are being provided are cyber secure, sustainable and have a healthy track record. With DeFi companies paying millions in rewards this is an excellent opportunity. However, it is an opportunity that requires due diligence, research and knowledge for maximum wealth capitalization.

## How is DeFi Impacting Traditional Finance

Decentralized financial protocols like digital assets based lending, DAOs and synthetic assets have opened up a world of new economic possibilities. A coordinated effort is being undertaken to develop a blockchain-based financial system that is accessible, resilient, and open. For example, DEXs allow peer-to-peer transactions without a central authority which adds an additional layer of benefit as exchanges never own crypto assets or private keys. This reduces the risk of hacks or thefts from a single point of failure, such as a centralized wallet.

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Peer-to-peer lending and borrowing are popular DeFi applications provided by the likes of Cake DeFi,  Argent, and Dharma. They employ the algorithmic autonomous interest rate based protocol to provide a variable yield to customers by performing lending the underlying virtual assets to receive interest. This decentralized form of lending allows customers to earn yield from their existing virtual assets that are not put to use.

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 ![Removing the power from intermediaries and gatekeepers](https://cdn.hackernoon.com/images/7rEmNIeHNFOBfZZtUMQerOZIGGH3-z1d3t6r.jpeg)

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[According](https://www.forbes.com/advisor/investing/cryptocurrency/defi-decentralized-finance/) to Forbes, through the use of peer-to-peer trades, DeFi aims to undermine the current centralized financial system by removing the power from intermediaries and gatekeepers. As a result of eliminating the middleman and creating digital assets with monetary worth, DeFi has a bright future ahead of it.

## Final Thoughts on Cake DeFi $317 Million Payout

DeFi protocols such as Cake DeFi paying out $317 million is great news! The more positive thing for the crypto industry, in my opinion, is that blockchain startups such as Cake DeFi are looking to get regulated and provide value to customers by being in an environment built on transparency, openness, and trust.

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Suppose companies such as Cake DeFi continue to pay considerable amounts to their customers and build a framework focused on compliance as a design. In that case, ***the days of DeFi taking over the world are not far away!***

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*Don’t forget to share and like the story!*

*Image credits: [Bryam Blanco](https://unsplash.com/@bryamb),  [David Holifield](https://unsplash.com/@davidholifield) and amirali mirhashemian.*

Cake DeFi

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