What is Cake’s YieldVault?
YieldVault offers an opportunity for investors to earn high returns on their crypto assets by capitalizing on the current negative interest rates generated through the DeFiChain vaults.
It’s an easier, better, and more flexible solution where you only need to deposit one type of coin into the third-party DeFi protocol, and you let your crypto do the work for you.
All transactions and rewards can be tracked and verified on-chain, because we believe nothing should be in a black box. Check our Transparency page for more information.
What are the supported cryptocurrencies in YieldVault?
Currently with YieldVault, you can earn yield on the following coins:
- BTC
- ETH
- EUROC
- DFI
- DUSD
- USDC
- USDT
For the current APY figures of each coin, please check the YieldVault page for the latest information.
What rewards will I receive?
There are two options available. When you enter into YieldVault, you can choose if you want to receive your rewards in the same coin that you allocated or in DUSD. For e.g. if you had allocated BTC in YieldVault and chose BTC as your payout option, rewards will be paid out in BTC. Please note that the APY depending on your choice might differ. Most of the time, the APY when choosing the rewards in DUSD, will be higher compared to the native coin.
How often are YieldVault rewards paid out?
Rewards from YieldVault are paid out twice a day.
How are the rewards generated through the DeFiChain vaults?
By depositing collateral into the DeFiChain vaults, Decentralized USD (DUSD) is minted to capitalize negative interest rates. The minted DUSD is then swapped into the different coins (e.g. DUSD -> BTC, or ETH) before being distributed to customers. The deposited collateral is not used for lending to institutional partners or for liquidity mining, hence there is no counterparty or impermanent loss risks for customers.
Read our blog article to find out more.
How can I trust that my crypto assets are safe with YieldVault?
As with all our DeFi services offered, we provide full transparency on what happens with your assets and how your yields are generated. Track all transactions, rewards and other on-chain data on our Transparency page. Trust, because you can verify.
What is a DeFiChain vault?
The DeFiChain vault operates on the DeFiChain protocol and allows users to deposit collateral and take out a loan against it. However, YieldVault offers a different mechanism in generating returns, where negative interest rates are capitalized through the minting and burning of DUSD, which will be swapped to the respective cryptocurrencies. Your assets deposited into YieldVault will not be loaned out.
Read our blog article to find out more.
What fees are associated with YieldVault?
The APY figures and returns shown are net of all fees, there are no hidden or additional fees after you allocate into YieldVault. Cake takes a 15% commission on all rewards for YieldVault.
Can I take out my coins from YieldVault at any time?
Yes you can take out your crypto assets at any time.
Is there a minimum amount to use YieldVault?
You can start earning with YieldVault by allocating a minimum of just 0.1 USD worth crypto into YieldVault.
It says my request to enter YieldVault is being processed/pending. How long will this take?
This will take up to 12 hours. Your entry will be confirmed right after the next payout at 3am/3pm UTC. Once your request has been processed and your entry has been confirmed, you will receive an email confirmation.
Will rewards from YieldVault be auto-compounded back into my entry?
You have the option to switch on auto-compound for YieldVault to automatically compound your returns and maximize your rewards. If you choose to get your rewards in DUSD, the DUSD rewards will be auto-compounded into the DUSD vault.
Example 1: Your auto-compound setting is turned ON. You have allocated BTC in YieldVault and chose BTC as your payout option, rewards will be paid in BTC and auto-compounded into the BTC vault (your allocated BTC amount increases).
Example 2: Your auto-compound setting is turned ON. You have allocated BTC in YieldVault and chose DUSD as your payout option, rewards will be paid in DUSD and auto-compounded into the DUSD vault (your allocated BTC amount stays the same and the allocated DUSD amount increases).
In any case, if your auto-compound setting is turned OFF, the rewards will go into your available balance instead.
Why does the APY fluctuate?
The APY for YieldVault will vary depending on the prevailing negative interest rates on DeFiChain vaults, and are not determined or controlled by Cake DeFi. For the current APY figures of each coin, please check the YieldVault page for the latest information.
What are the advantages of using YieldVault?
With YieldVault, you can earn high returns on popular tokens like BTC, ETH, and stablecoins, paid twice daily. One of the best things about YieldVault is how easy it is to get started. Cake DeFi takes care of the entire process, so you don't have to worry about the technical details. With just a few clicks, you can start earning high yields on your crypto assets.
Another advantage of YieldVault is its liquidity. Rewards are paid out in the native token and can be taken out of the vault at any time, so users don't have to worry about their assets being locked up. This provides flexibility and peace of mind for investors.
At Cake DeFi, we believe in full transparency when it comes to our investment products. With YieldVault, you can trust that we provide full transparency on the assets deposited and allocated into the product. Rewards can be tracked and verified on-chain through the wallet address given on our Transparency page.
In addition to these benefits, YieldVault also provides users with access to decentralized protocols. This allows users to access DeFi services and provides a safer and more hassle-free experience to earn passive income without having to manage and operate everything themselves.
What are the risks of using YieldVault?
As the collateral deposited is not used for liquidity mining or lending purposes, there are no impermanent loss or counterparty risks. However, DeFi vault risk remains; namely smart contract, protocol and liquidation risks. Do your own research (DYOR) on the cryptocurrencies that you are investing with to understand the potential risks associated with DeFi investments in general.
It's also important to note that YieldVault will be updated or changed once the negative interest rates from DUSD loans stop. This means that the yield generated could be gradually reduced or converted into another yield-generating mechanism. While we do not foresee this to happen in the near future, users should exercise caution and stay informed on any changes or updates that may affect their investments.
How do I get started using YieldVault?
With just a few clicks, you can enter YieldVault and start earning rewards. For a full guide how to get started, please check this article: Simple Step-by-Step Guide: How to start using Cake DeFi "YieldVault"