Decentralized finance is a very attractive way to explore the cryptocurrency industry. Users can put their assets to work and receive rewards for doing so. CakeDeFi, an industry leader in making DeFi more accessible, is expanding its facilities with a new lending offering.
CakeDeFi goes a step further
Platforms like CakeDeFi make the search for decentralized finance even easier. The platform offers everything the novice or advanced users need to invest their money to get it working without any hassle. In addition, the platform offers various features for users who want to generate a revenue stream, including liquidity mining, staking, and lending.
In a recent platform update, the team introduced a lending product. It does what the name implies: users can borrow the stablecoin – DUSD – against their digital assets. Supported collateral includes Bitcoin, Ether, Tether’s USDT, USD Coin, and DeFi. In addition, the borrowed DUSD tokens can be used on the wider CakeDeFi platform, including staking, lending, and liquidity mining.
This is paramount to assets that users can borrow for primary use cases. More often than not, borrowings and borrowings create tremendous market pressure for borrowed assets, as there is a sudden increase in liquidity. Furthermore, users often borrow assets to be used for speculative profit, yet stablecoins like DUSD cannot fluctuate in value. Instead, if merchants accept it as a payment method, you can use it to access other services or purchase items under the CakeDeFi banner.
DUSD is only the third asset to be backed by CakeDeFi staking, making it part of a select club. Furthermore, the addition of liquidity mining will make it easier for beginners to discover DUSD and access it through their preferred cryptocurrency. The DUSD currency is used for liquidity provision for many decentralized assets including dCOIN, DNVDA, dGME, etc.
Lending functionality is an important addition
The different use cases paint an interesting picture for the DUSD asset. Users looking to generate passive income through CakeDefi’s features can explore opportunities to get an APR of over 70%. CakeDeFi raises the bar for passive revenue generation through attractive APRs and successfully maintains those rates. As things stand, DUSD has an APR of 72%.
Furthermore, the option to borrow DUSD against existing crypto holdings ensures that users do not need to sell their initial liquidity. Instead, they can leverage their assets to access DUSD liquidity and use it as they see fit. Lastly, there is also the option to convert between DUSD, USDC and DFI for free, and unlocks more revenue generating opportunities for CakeDeFi users.
Adding lending functionality to CakeDeFi expands the platform’s appeal for both new and existing decentralized finance enthusiasts. The team issued $230 million in rewards to users throughout 2021, and they aim to increase this to $1 billion in 2022. Through the lending functionality, users can tap into a new passive revenue generating source and rent their assets without having to relinquish ownership. ,