In the rapidly growing field of decentralized finance (DeFi), transparency isn't just a virtue — it's an absolute necessity. This is the fundamental belief that underpins everything we do at Bake.
As a Singapore-based company, we adhere to the clear crypto regulations – one of the strictest ones in the world – the nation has established. The innovation-friendly culture within the country has allowed us to develop transparency-enhancing practices rarely seen elsewhere in the DeFi space.
Our dedication to transparency is reflected through our fabulous track record and Trustpilot score – the overall measurement of reviewer satisfaction.
With the launch of our new Transparency Page, we aim to grant the gold standard of transparency to our customers. The page provides a comprehensive view of our operations, uniting all crucial information in one easily accessible space. From detailed asset documentation to real-time Proof of Reserves — everything is openly available and verifiable.
Bake's Transparency Principles
To provide our users with the highest level of trust and visibility, we've designed our new Transparency Page to allow users to easily verify their funds are safely stored with us.
Since our inception in 2019, we have been disclosing the total number of assets we hold on all of our addresses through our on-chain Proof of Assets program. This was long before Proof of Reserves became a common practice in the DeFi space.
Our completely revamped Transparency Page comprises four main segments:
- Proof of Reserves: This section provides information about our liabilities (what we owe to the users). We present this data in the form of a Merkle tree — a fundamental concept in blockchain technology. Check out our comprehensive Merkle tree explainer video for more details.
- Transparency Reports: Here, we provide quarterly reports dating back to Q1 2021. These reports cover various aspects, including financial health, operational efficiency, and team performance. They provide an in-depth insight into our workings, ensuring you are informed about our operations.
- Proof of Assets: This section delivers a deep dive into the details of the assets we hold. The proof of assets provides a breakdown of the total assets we manage across our application, including liquidity mining pools, staking, lending, and 'Earn' products.
- Status Reports: This section keeps you updated on the status of our application. If our app is undergoing maintenance or there is a service disruption, you can quickly find the information here. You can also head to status.bake.io for more detailed insights.
Proof of Reserves and Assets
Our Proof of Reserves is the result of our assets minus our liabilities. A good rule of thumb for any financial company, including DeFi platforms, is that their assets should always be a higher number than their liabilities.
When it comes to Proof of Assets, we believe in providing our users with as much detail as possible. For instance, in the liquidity mining pools section, we showcase every pool in which our users are invested, detailing the total liquidity the user base holds.
This transparency extends to our staking and YieldVault products as well. Each section provides intricate details, offering users clear visibility into their investments.
All Information Is Verifiable
All the information provided on our Transparency Page is verifiable. For instance, if you wish to confirm the authenticity of the assets in the liquidity mining pools, you can do so by clicking on the pool address, which will redirect you to the DeFiScan page.
The total shares represented match the shares displayed on our platform. Moreover, you can copy this blockchain address and use any other DeFi chain explorer to cross-verify the shares, adding another layer of security.
At Bake, transparency is not just a word; it's the way we operate. Our ultimate goal is to ensure that our users feel confident about their investments and the integrity of our platform. We understand that trust is not given; it's earned, and our Transparency Page is a testament to this belief. As we continue to grow and evolve, we remain committed to providing our community with as much information and visibility as possible.
DISCLAIMER: Please note that the information on this blog and in any articles posted on this blog is for general information only and should not be relied upon as financial advice. Cake Pte. Ltd., Cake DeFi, UAB, and its affiliates (the “Cake Group”) are not licensed financial advisers. You may wish to approach your own independent financial advisor before making any decision to buy, sell or hold any product and/or digital assets mentioned in this blog.
Any views, opinions, references, assertions of fact and/or other statements are not necessarily the views held by the Cake Group. The Cake Group disclaims any liability whatsoever that may arise out of or in connection with such statements. Always do your own research before investing in any financial assets and consult a qualified financial advisor if necessary.