Proof of Reserves: You can trust Cake DeFi because you can always verify
The possible implosion of FTX, once the second-largest exchange, has caused huge market turmoil in recent days. In light of the industry's current liquidity struggles, it’s imperative for us to provide clarity on these challenges and reiterate how Cake DeFi's business has always been transparent with its funds.
In such volatile times, crypto companies need to provide both assurance and protection to their users and their hard-earned money in order to remain competitive. For us, transparency and security aren't just duties, they're a necessity, and we live them every day. We have been a leader in providing proof of reserves on our platform since we started in 2019 at a time when no one else was doing it. You can easily access this on our Transparency page, even if you are not a customer: www.cakedefi.com/transparency
On top of our Transparency Page, we at @cakedefi are preparing a proof of funds and will be publishing it later today. 100% of our customer funds are backed. We have zero material exposure to external parties. You can trust, because you can verify -> #CeDeFi
— Dr. Julian Hosp (@julianhosp) November 11, 2022
In addition, due to uncertainties in the market, we have called back the Lending assets with institutional partners. The funds can all be accounted for at the following addresses:
BTC lending reserves: 3HRPnc4SddsFjrLVTfuTZJ2kQhdyCaHT4G
ETH, USDC and USDT lending reserves: 0x8b802fa7b71ea532187e432d9b87d24cc904243a
Total funds in Lending in all 4 batches can be referred from https://app.cakedefi.com/lending.
As a logical next step, we are also accelerating our long-planned restructuring initiative around our Lending product to provide users with a fully decentralized DeFi lending service that is even more transparent with predictable interest rates through on-chain DeFi services. These changes will be announced soon and communicated separately in due course.
Customers who are currently using our Lending product do not have to take any further action or be concerned. There will be one key change: the duration of the lending batches will be eventually reduced from 28 to 7 days to increase flexibility and give you more control over your investments. Consequently, the base APY rate also remains the same for all current Lending coins.
How Cake DeFi ensures that our customers’ funds are safe
From day one, Cake DeFi has sought to be the most secure and transparent crypto platform. As a result, Cake DeFi and our customers today are not in any direct danger of liquidity or credit risk. As a Singapore-headquartered company, we ensure clear asset segregation, whereby the assets of the company's customers are kept separate from those of the company's operating accounts. Simply put, our users have control and authority over their funds.
Transparency is key for us. That’s why all transactions, yields, masternodes, and other valuable information on our platform are completely transparent and also independently verifiable by our users. It is our promise to our customers, which also explains their continued trust in us.
This is in stark contrast to CeFi platforms, which can arguably be likened to a “black box” that offer limited transparency and / or control to entities other than itself. As such, users wouldn’t have clarity or information on things such as where the yields are being derived from or - worse - if their funds are being commingled with operational funds.
Cake DeFi is a facilitator or agent between the client and the service provider. What does this mean? It means we provide our users a "safe passage" to decentralized finance (DeFi) services: these services are all on the blockchain, fully transparent, and fully accessible to everyone. Technically, customers with enough technical knowledge can make such transactions on the blockchain themselves. What Cake DeFi offers is a one-stop-platform where people can access all these services at a single point with customer and community support.
As part of our ongoing commitment to transparency, we are proud to reaffirm our pledge to maintain your financial freedom – now and in the future. While we still believe your crypto is safest in your own wallet, we will always strive to be as transparent and secure as possible, when you trust us with your assets.
