Despite crypto winter, Cake DeFi paid out $58 million in Q2 rewards
According to its latest ‘Transparency Report,’ Cake DeFi continued its growth trajectory in the three months through June 2022, even as the entire crypto industry experienced macro challenges this quarter.
The Singapore-based cryptofinance platform said Q2 2022 was yet another strong quarter for its business with each of the protocol’s departments recorded positive growth. In terms of finance, Cake DeFi paid out $58 million in rewards to clients, taking the total payout since inception in 2019 to $375 million. On top of that, the company has seen its strongest quarter yet when it comes to customer growth, funded accounts and payouts.
These metrics were impressive given the second quarter was not all smooth sailing for Cake and the broader crypto industry. They all faced some challenges along the way that threatened to derail its growth amid a prevailing negative market sentiment. The crypto market cap has fallen below $1 trillion for the first time since 2020 — and in hindsight, a number of big names in the crypto industry have made painful layoffs.
But unlike its competitors Cake was able to generate positive cash flow and still hiring people. Many other firms in the crypto space, including the big names, are cutting staff as the price of pretty much every single cryptocurrency is in the red. Even in the event that revenue would dry up completely, Cake says its treasury provides for at least 4 years of runway.
According to the report, significant strides were also taken to improve the user experience. The protocol has successfully switched to an automated KYC system with 3-minute approval times along with improving the user experience in its mobile app.
Other business highlights shows that Cake continues to diversify its treasury even further. The company will be publicly investing 15 million dUSD into decentralized assets such as dTSLA, dTLT, and a few others.
Cake vowed to leverage the crypto winter to the max and the redundancies seen in other firms could mean that the firm has access to a pool of top talent and new business opportunities.
“Also, considering how far prices have dropped in the general markets, this may provide great potential upside. Cake will make this completely public, so people can actually monitor this progress,” it says.
Despite the ongoing crashes in cryptocurrency prices, Cake DeFi has amassed over $1 billion of total customer assets and close to a million registered users. Cake DeFi opens up a barrage of opportunities for investors to earn steady passive income through staking, lending, and liquidity mining.
Cake DeFi’s staking program enables users to earn an APY of 31.5% on their idle digital assets. Those who deposit into lending batches are provided with returns at the rate of 6.5% APY within four weeks. Additionally, liquidity mining depositors can earn up to 75% interest within a year.