What’s the Fuss About CakeDeFi’s Borrow offering? And how can people use it? – Coinpedia – Fintech & Cryptocurreny News Media

Decentralized finance is a very appealing way to explore the cryptocurrency industry. Users can put their assets to work and reap the rewards for doing so. CakeDeFi, an industry leader in making DeFi more accessible, is expanding its features with the new Borrow offering. 

CakeDeFi Goes One Step Further

Platforms like CakeDeFi make the exploration of decentralized finance much more straightforward. The platform offers everything novice or advanced users require to put their money to work without much hassle. Moreover, the platform offers various features for users looking to generate a revenue stream, including liquidity mining, staking, and lending. 

In a recent platform update, the team introduced the Borrow product. It does what the name implies: users can borrow stablecoins – DUSD – against their digital assets. Supported collateral includes Bitcoin, Ether, Tether’s USDT, USD Coin, and DFI. In addition, borrowed DUSD tokens can be leveraged across the broader CakeDeFi platform, including via staking, lending, and liquidity mining. 

It is paramount for assets users can borrow to have primary use cases. More often than not, lending and borrowing create tremendous market pressure for the borrowed assets, as there is a sudden liquidity increase. Moreover, users often borrow assets they want to use for speculative gains, yet a stablecoin like DUSD cannot fluctuate in value. Instead, one can use it to access other services under the CakeDeFi banner or purchase items if merchants accept it as a payment method. 

DUSD Is only the third asset to be supported by CakeDeFi staking, making it part of a select club. Moreover, its addition to liquidity mining will make it easier for newcomers to discover DUSD and access it through their preferred cryptocurrency. The DUSD currency is used for the liquidity provision of numerous decentralized assets, including dCOIN, DNVDA, dGME, etc. 

Borrow Functionality Is A Key Addition

The various use cases paint an interesting picture for the DUSD asset. Users seeking to generate passive income through CakeDeFi’s features can explore opportunities to achieve an APR of over 70%. CakeDeFi raises the bar for passive revenue generation through rather attractive APRs and successfully maintains those rates. As things stand, DUSD has an APR of 72%. 

Furthermore, the option to borrow DUSD against existing crypto holdings ensures users do not need to sell their initial liquidity. Instead, they can leverage their assets to access DUSD liquidity and use it as they see fit. Finally, there is also the option to convert between DUSD, USDC, and DFI for free, unlocking more revenue-generating opportunities for CakeDeFi users. 

The addition of Borrow functionality to CakeDeFi expands the platform’s appeal to new and existing decentralized finance enthusiasts. The team issued $230 million in rewards to users throughout 2021, and they aim to raise that to up to $1 billion in 2022. Through the Borrow functionality, users can tap into a new passive revenue generation source and put their assets to work without relinquishing ownership.