Cryptocurrency lending products are one of the best ways to generate passive income, increasing the value of digital assets and investment banking over the past two years.
But while cryptocurrency prices have risen sharply as the amount of lending and private equity lends to such complex assets, it is now important to fully understand how cryptocurrency works. such donors and what the risks are.
Amid a volatile market fueled by fears about an impending financial crisis, many crypto -related investors have been forced to take serious action after the crash. they could not set aside money to pay his debts.
Celsius, which is considered one of the “big 3” credit institutions, handles returns, swaps and transfers. Vauld and Babel Finance have also suspended all operations at its sites and are looking at new management options.
Other major players are struggling to stay afloat during the turmoil. BlockFi and Voyager have had huge losses and they have received bailout loans from FTX’s Sam Bankman-Fried. Meanwhile, the Three Arrows Capital hedge fund has fallen into disrepair after it ran out of large loans.
With the decline of major cryptocurrencies such as Celsius and BlockFi, it has become important to accurately understand the performance of each cryptocurrency provider and evaluate the reliability of their business.
This guide highlights some of the crypto currency platforms that are still on the market – with the most up -to -date information about its offering.
Founded in Singapore, Cake DeFi is a platform that stands for its alleged commitment to security and intelligence, making it one of the best crypto investors in Celsius and BlockFi.
While cryptocurrency prices continue to fall, Cake DeFi has amassed over $ 1 billion in customer value and nearly one million users. The platform opens up opportunities for investors to earn fixed passive income through staking, lending, and liquidity mining.
While easy to use, Cake DeFi pays close attention to the safety of customers ’money. Safety and AML evaluations are ongoing.
The Cake DeFi staking program allows users to earn an APY of 31.5% on their digital assets. Those who are placed in loan groups are offered a return at the rate of 6.5% APY over four weeks. In addition, liquidity mining investors can earn up to 75% interest within one year.
As the dominoes continue to fall in the turbulent market for cryptocurrencies, Cake DeFi believes the entire industry will do more to ensure and protect its community value.
Earlier in June, the company issued a statement to allay consumer fears following the insolvency of major crypto investors in the cryptocurrency world. The multi-regulated platform said the current market has little and no impact on its day-to-day operations and explained why Cake’s business does not prevent events related to foreign sites. yes.
Explaining what sets them apart from Celsius and other competitors, Cake says it’s knowledge and discipline.
As a fintech company in Singapore, the customer’s assets are segregated into trusted or managed stocks, selected for the independent benefit of Cake’s customers. This process ensures that the funds held in these dedicated trust funds are available to be returned to customers when the company becomes insolvent or bankrupt.
There are also standard editorial requirements, among other security measures, maximum size and age files that can be easily accessible to applicants.
In addition, Cake DeFi acts as an agent or intermediary for the services provided. In simple words, it gives users a “safe way” or access to decentralized finance (DeFi) products.
On top of that, Cake’s operations occupy a self -judicial state as do all the services on the blockchain. As a shared archive, you can see all the activities, results, sources and other important information.
While the crypto community believes that a drop in Celsius could take a consumer’s budget with it, Cake said CeFi sites such as Celsius, Binance and Crypto.com will be compared. to a “black box” that gives less information and power to others. other groups besides his staff.
On the editorial side, Cake DeFi is under a license from the Registrar of Sales Associations of Lithuania. It may be allowed to provide crypto trading services in Lithuania and other European countries.
As a clear sign of strength, Cake DeFi has paid $ 317 million in donations to its users as of the end of the first quarter of 2022. The platform has also established a corporate arm with $ 100 million to invest in startups across Web3, the metaverse. , the NFT area, sports, esports, and fintech.
Nexo is a fast -growing cryptocurrency platform with competitive pricing and credit fees. The threshold allows users to deposit their unused crypto assets and receive a predictive source of passive income, with 18% of annual income.
Nexo offers easy -to -use solutions for publishers to extract interest from their cryptocurrencies. However, the annual interest rate (APY) you receive depends on your level of commitment and the degree you choose.
The platform offers a feature called “Earn in Kind”, which allows users to get their interest in the same basic money. For example, Ethereum archives are available at ETH. The other option to get a real NEXO token is to give the holder an additional 2% bonus.
Next, we have Crypto.com, which is more focused on offering competitive credit cards for stablecoins, as well as crypto credit cards and debit cards with fees. You can deposit your property as a creditor and take out crypto loans to fulfill your financial needs, use it for margin trading at Crypto.com exchanges, or exchange at other exchange sites.
Crypto.com allows users to borrow crypto currencies, including USDC, USDT, BTC and ETH. With that said, the platform offers higher returns if you decide to lock in your stablecoins for one month (up to an APY of 8%) to three months. The latter option is to increase the yield to 10%, which is about a 3 -month fixed term and minimum staking requirements of 40,000 CRO tokens.
When it comes to frequent lending, Crypto.com pays a fee to users on a weekly basis, which allows them to return the money to another credit agreement.
Hodlnaut is another site that offers investors a way to earn interest on their cryptocurrencies by offering their securities to traders at the border, long -term investors, and investors. Other.
Based in Singapore, Hodlnaut was founded in 2019 as part of the Antler portfolio. Hodlnaut’s annual combined interest rate ranges from 1.0% – 13.86%.
Hodlnaut offers digital asset loans to customers with a cash loan starting at $ 50,000. Mortgages can be released with a minimum of three months, even if the loan is 70% or less.
You can exchange and purchase all supported tokens on the Hodlnaut site.
While these crypto financial institutions are only a small selection of the ones available on the market, they are among the best. Of course, there are enough options available to meet all the requirements, whether security, refund, compensation, or knowledge.
While some offerings, such as Cake DeFi, are relatively young, they are growing rapidly and have already established themselves in the community.
As mentioned above, Cake DeFi stands out in terms of products, available specifications, and safety – as well as customer service, repair, and other important factors. yes. This concept of trading is important after the market has collapsed due to shortcomings in the business models of cryptocurrency investors.
The current turmoil brings with it a significant risk of losing confidence in the cryptocurrency industry and DeFi, which could create a downward spiral. The main reason is the bankruptcy and anonymity of the major cryptocurrencies. However, some argue that the continued “crypto winter” will benefit DeFi and the cryptocurrency platform in the long run by releasing weaker players.