Cryptocurrency investors' and traders' journey hasn't been particularly fruitful this year, with the entire crypto market noting significant losses throughout the first quarter of the year.
However, those who were smart enough to diversify their investment by lending, staking, and utilizing similar strategies, managed to mint themselves some profits against the bearish market with the help of platforms such as Cake DeFi.
Cake DeFi to the rescue
By staking, lending, and liquidity mining, people who put their assets to good use managed to generate significant inflows during the volatile market and gain solid returns on their investment.
Cake DeFi is one such DeFi platform that gave out over $73 million in rewards to investors in the first quarter of 2022, the same as it did back in December, despite the ongoing price crashes.
Offering the option of staking, lending, and liquidity mining, Cake DeFi opened up a barrage of opportunities for investors to earn steady passive income in order to offset the losses endured by the market crash.
Those who committed their assets to Cake DeFi's staking program earned an APY of 31.5%, whereas depositing into lending batches provided them with returns at the rate of 6.5% APY within four weeks.
On the other hand, liquidity mining enabled depositors to earn up to 75% interest within a year. By yield farming using their assets, investors were able to earn high rewards with minimal fuss.
In addition to this, Cake DeFi also launched a brand new product last month, "Borrow", through which a user could borrow Decentralized USD (DUSD) by simply adding Bitcoin, Ethereum, Tether, or USDC as collateral.
Borrow also allows people to pledge a combination of these assets, provided 50% of the entire collateral is DFI, Cake DeFi's native token.
But what makes Cake DeFi an ideal platform beyond its rewards is its commitment and dedication to supporting the development of DeFi and web3.
For the same, they launched Cake DeFi Ventures in March with $100 million in earmarked capital in order to invest in Metaverse, NFTs, fintech, and gaming startups.
The Crypto market goes down
On the other hand, beginning November 2021, the crypto market has been sliding downwards. From a high of $3 trillion, the value of all cryptocurrencies kept declining to the point where after the May 9 crash, the crypto market was only worth $1.43 trillion.
Cut down by half, investors today are in absolute horror concerning their portfolios. Even during the first quarter of 2022, the market had already plummeted by 35% but managed to recover to only lose $200 billion by the time Q1 ended.
Consequently, investors were left dejected, and the market slipped into an absolute state of fear.
The Fear and Greed Index has only ever plunged to a level this low once in 2022 and for the fifth time since May 2021. This shows just how terrible the state of investors in the crypto market is right now.
But while the crypto holders are suffering losses, those who decided not to wait for price appreciation and went ahead and made use of their idly lying assets managed to make a buck in these trying times.
Thus, with the emergence of platforms like Cake DeFi, crypto asset holders now have the opportunity to offset the market’s downtrend by gaining significant returns using ingenious investment options.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.