Cake DeFi Launches New Corporate Venture Arm with $100 Million to Invest in Web 3 Ecosystem

Cake DeFi launches a $100 Million Venture Arm

Cake DeFi, a Singapore-based DeFi platform that provides decentralized financial services and apps available to everyone, has announced the creation of its venture-capital arm, which will invest US$100 million in the tech ecosystem. Cake DeFi Ventures (CDV) will invest in Web3, metaverse, NFT, gaming, esports, and fintech firms to provide synergistic value to Cake’s core business. CDV is based in Singapore and will search for global investment possibilities in companies all around the globe.

Julian Hosp, Co-founder and Chief Executive Officer of Cake DeFi, said:

By launching Cake DeFi Ventures, we strive towards bringing cryptocurrency and blockchain capabilities to the world. With Cake's current status as Singapore's and Southeast Asia's fastest-growing platform, projects which we invest in can expect to receive strong support scaling globally.

Cake DeFi co-founders Dr Julian Hosp, CEO, and U-Zyn Chua, CTO, lead CDV. Dr Hosp is a seasoned blockchain entrepreneur who is generally considered a top influencer in the crypto and blockchain field, having over one million followers across all of his platforms. By 2025, he wants a billion people to be aware of and comprehend blockchain technology. U-Zyn has been designing and developing decentralized systems for over a decade as a blockchain engineer, enthusiast, and investor.

They founded cake DeFi as the world’s top investment platform for DeFi and other up-and-coming alternative assets based in Singapore. Cake DeFi will provide substantial assistance to CDV portfolio firms. They will have access to various Cake products, connections, users, resources, and knowledge in the global blockchain market.

Last year, Cake gave out more than $230 million in prizes to its subscribers, and it expects to pay out more than $400 million in 2022. Cake allows users to gain cash flow from their digital asset investments via features like lending, staking, and liquidity mining.

What is Liquidity Mining?

On-chain activity has exploded as a result of the Decentralized Finance (DeFi) rise in 2021. VCs are investing billions of dollars in the digital assets industry. The volume on DEX can compete with the volume on controlled exchanges such as Binance, FTX, Coinbase and Gate.io. According to reports, DeFi protocols are expected to be worth around 15 billion USD by December 2020. New sorts of items are increasingly entering the ecosystem.

One of the core technologies in the present DeFi ecosystem is liquidity pools. They’re used in automated market makers (AMM), borrow-lend protocols, yield farming, synthetic assets, on-chain insurance, and blockchain gaming, to name a few examples.

A liquidity pool is essentially a sizeable digital programmable pool of money deposited in a smart contract. They allow for decentralized trading of virtual assets, lending, and yield production through liquidity mining among other things. Smart contracts now fuel practically every aspect of DeFi and will most likely continue to do so in the future.

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Image credits: David Holifield and Artyom Korshunov.

Disclaimer: The purpose of this article is to remove informational asymmetry existing today in our digital markets by performing due diligence, asking the right questions, and equipping readers with better opinions to make informed decisions. The writer holds Bitcoin, Ethereum, Cardano, Solana and Cosmos. The writer has been commissioned to write this story and thus has a vested interest in the companies/products mentioned above.