Cake DeFi, one of the best-known decentralized finance “DeFi” investment platforms, is forging ahead despite a global crypto market slowdown that has wiped off over $1.2 trillion from the value of cryptocurrencies. The platform released its latest quarterly report this week, indicating resilience and striving for growth despite the market bloodbath.
- Cake DeFi is a platform that lets cryptocurrency owners around the globe earn interest on their assets by staking or lending them. Crypto investors can also borrow funds on the platform, and the interest is distributed proportionally to lenders, akin to a peer-to-peer lending network.
In its latest report, Cake DeFi says it ended the third quarter of 2022 with a slight net profit despite crypto prices plummeting. The crypto plunge actually made Cake DeFi record an operational loss, but it came out net-profitable due to a well-balanced treasury. The platform didn’t provide concrete figures in the latest report but noted that the operational loss was “small.”
Cake DeFi paid out $18.7 million in rewards to stakers and lenders on its platform in this year’s third quarter, down from $57.5 million in the preceding quarter. However, that massive drop doesn’t look bad considering the dwindling values of cryptocurrencies relative to the dollar this year.
The company claims its current treasury gives it 5 to 8 years of runway, with most assets held in fiat currency. It ended the quarter with a headcount of 155, compared to 140 in the preceding quarter. It also claims to have added more customers in the quarter than in any other quarter.
Given the figures reported by Cake DeFi, it’s apparent that the company is strong despite the global slowdown that has ended some of its rivals. For instance, Babylon Finance shut down in September after investors migrated their assets in droves away from the platform.
Cake DeFi’s chief executive, Julian Hosp, penned an optimistic outlook concerning the future of the crypto markets. “I am certain that spring will eventually follow the crypto winter, as this is just a cycle like any other,” he said. “In the bull run, those who prepared well during the bear market will benefit greatly.”