CakeDefi: My Honest Review — Get An Income From Your Bitcoin With Minimal Effort

What is CakeDefi?

But let’s start at the beginning. The team created a narrow purpose blockchain: the DeFiChain, especially tailored for DeFi (Decentralized Finance, as opposed to traditional Finance we all know from banks & institutions). It intentionally does not allow all kinds of Programming and complex smart contracts like Ethereum does. This comes with a great benefit: simplicity and very low fees. The DeFiChain is open source and the community can vote for proposals.

The Chain can be used without Cake through the Explorer, however, the Cake Platform uses the DeFiChain to provide services:

  • Staking
  • Lending
  • Liquidity Mining
  • A Freezer Program to lock funds on the chain and grant extra returns

How I used the platform

Then I staked some of the DFI tokens which returns about 100% APY at the moment (this was about 300% APY beginning of the year but will of course go down over time). I also lent out some of my bitcoin, which grants between 5–7.5% APY depending on the price of Bitcoin.

Last but not least I tried out Liquidity Mining with a very small amount of my capital, as I just wanted to test it out. Here you provide 50/50 DFI and Bitcoin and receive trading fees but there is the risk of impermanent loss, as the pool will always have to be balanced. The interface will show you an indicator how risky your investment is but still please do your research first.

They recently announced more lending options (USDC, USDT, ETH) for up to 8% return which I think is also quite nice.

I will continue to invest with the platform, but of course diversify with other platforms as well. Never put all your eggs in one basket.

How to invest with CakeDefi

For my next investments I will probably buy DFI directly on KuCoin and send it via DeFiChain to the platform. With this approach there are no network fees. On the platform I can trade the DFI for any other currency


  • Very easy to use overall
  • Team is very transparent and invested themselves (Quarterly Transparency reports)
  • Auto-compounding feature
  • Weekly/monthly notifications about your earnings
  • Rewards are paid daily (even for frozen funds the rewards can be paid out any time)
  • Great for long term investors, founders have bought with their own funds and locked those for 10 years
  • Full tax report can be generated in the app


  • Costs to get funds out of the platform needs to be considered (not important for long term holding)
  • Not your keys, not your crypto — you have to trust the platform with your investment
  • Founder Julian Hosp has had some negative publicity in the past, I dug a bit and feel I can trust his company with my money. Please feel free to form your own opinion.


Past items:

  • USDT Lending
  • Fiat on-ramp
  • Liquidity mining service
  • Tax report feature
  • Referral program update

Current items:

  • Mobile App for iOS and Android
  • Lending with new risk profiles
  • DeFiChainWallet & DEX Integration
  • Stocks, Commodities and Currencies

My recommendation

Let me know in the comments if you have any experiences with cake or any questions you would like to know about the platform!

If you would like to start and want to support my work, feel free to use my affiliate link to register. After you put $50 onto the platform and let it work for you, we will both get $30 in DFI. Which is kind of a sweet deal I think.

Cheers and until next time,


None of this is financial advice. Please always do your own research. Thanks for reading! If you would like to support my work, consider smashing that like button and/or using my affiliate links to make/safe money:

Register with CakeDefi — Start earning dividends on your assets today, get $30 for depositing funds worth $50!

SignUp for a free publish0x account — get paid in crypto for reading or writing!

Register with Binance — the biggest Exchange by volume and save 10% off trading fees forever!

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Follow my crypto adventures in DeFi with Fantom, Cosmos & THORChain.