Cake DeFi launches EARN: 10% APY with Volatility Protection feature

Cake DeFi has launched a new hybrid investment product that allows users to enjoy competitive returns on their crypto assets via a single-sided liquidity mining service providing daily rewards while protecting users against market volatility.

Going by the name of EARN, the new CeDeFi product allows users to allocate either Bitcoin (BTC) or DeFiChain (DFI) to receive rewards in the native coin every 24 hours, at approximately 10 per cent annual percentage yield (APY). Returns in EARN will also be autocompounded to generate even greater yields.

The offering includes a Volatility Protection feature that addresses concerns about market volatility and its impact on user funds. The feature is designed to protect users against impermanent loss, covering potential losses should crypto prices fluctuate drastically.

Investors have become increasingly risk-averse since crypto winter

By combining the high yields of Liquidity Mining with the volatility protection feature, EARN aims to stand out from the crowd as a means of generating cash flow from allocating existing crypto assets with claims of no counterparty risks and protection against impermanent loss.

Julian Hosp, Co-Founder and CEO of Cake DeFi, commented: “Our latest product EARN was launched to address today’s market needs. With the crypto winter settling in, investors have become increasingly risk-averse, especially since many Centralized Finance (CeFi) platforms have become insolvent or are facing liquidity issues. As a Centralized Decentralized Finance (CeDeFi) platform, our business is to provide our users with good yields on their crypto investments with complete transparency.

“You can always trust Cake DeFi because you can always verify. EARN will allow users to get unbeatable returns on Bitcoin which they can track transparently on the blockchain. The Volatility Protection feature will also protect them against impermanent loss, especially in such times of market volatility.”

The wider investment community has increasingly found a good rule of thumb to be limiting cryptocurrency to between 5% and 10% of the overall portfolio.

The crypto winter, however, saw $2 trillion being wiped out since the peak in 2021. Together with impending high inflation, experienced and novice investors alike are starting to take a more conservative approach to crypto.

Cake DeFi’s Earn aims to address the new risk(-off) approach with a product that offers considerable yield. The Singapore-based fintech focused on decentralized finance has reportedly crossed the 1 million customer mark and has paid out a total of US$375 million in customer rewards to date as of the end of Q2 2022.