For details about the USDC / USDT Lending Service please click HERE
- A base guaranteed return APY would be displayed on Cake’s platform for each batch, and additional bonus tier(s) will also be displayed conditioned on approximated indicative BTC/ ETH- price range.
- There are two bonus rounds for each Batch. The first bonus round covers the first 14 days of a Batch and the second bonus round covers the last 14 days of a Batch. The first bonus round starts with the start of the batch and ends on Friday of the second week at 4PM Singapore time. (May have deviations from the time) The second bonus round starts afterwards and ends when the batch ends. The price to be achieved is indicated with the respective batch.
- The approximated indicative BTC/ ETH- price range for bonus is not a guarantee. As Cake only receives definite price range data at the start of a batch, indicative price range is provided when a batch is accepting entries.
- The base reward is guaranteed as it is not dependent on BTC/ ETH spot price at start of batch and the market conditions.
- Definite pricing and bonus tier(s) will be provided on the starting day of the batch. This would be decisive and allows all users to independently track which tier a batch would likely end up yielding based on BTC/ ETH spot price upon batch expiry.
- Optional DFI return is calculated based on BTC/ ETH spot price upon batch entry, as DFI bonus is paid at the start of each batch. This effectively allows you to gain a higher return on DFI by staking!
Illustrations (with a BTC example)
For illustrative purposes, say a Lending batch provides the following:
- Guaranteed BTC return of 3.5% BTC p.a.
- Optional DFI return of 4% DFI p.a.
- Bonus BTC return of 2.5% BTC p.a. if BTC spot price at batch expiry is US$12,500 or more.
E.g. Spot price at batch start date is US$10,000.
A user enters with 10 BTC.
Sample scenario 1: Bitcoin price stays relatively consistent throughout the batch period
Spot price at batch expiry is US$10,500 (+ US$500 compared to start price)
Return would thus be 7.5% p.a., split into 3.5% p.a. in BTC and 4% p.a. in DFI.
Said user would thus be receiving:
- 10 BTC (entry amount)
- 0.0264249 BTC (BTC return at 3.5% p.a.)
- US$301.32 worth of DFI (DFI return at 4% p.a.)
* DFI is calculated based on the spot price of BTC upon batch entry.
Therefore, total amount received would be: 10.0264249 BTC + US$301.32 worth of DFI
Sample scenario 2: Bitcoin is priced lower at batch expiry
Spot price at batch expiry is US$2,500 (- US$7,500 compared to start price)
As Lending provides a guaranteed base return, user return would still be 7.5% p.a., split into 3.5% p.a. in BTC and 4% p.a. in DFI.
Said user would thus be receiving:
- 10 BTC (entry amount)
- 0.0264249 BTC (BTC return at 3.5% p.a.)
- US$301.32 worth of DFI (DFI return at 4% p.a.)
* DFI is calculated based on the spot price of BTC upon batch entry, thus DFI return is not affected even though BTC is priced much lower upon batch expiry!
Therefore, total amount received would be: 10.0264249 BTC + US$301.32 worth of DFI
Sample scenario 3: Bitcoin is priced higher and hits a bonus tier
Spot price at batch expiry is US$13,000 (+ US$3,000 compared to start price)
Base return would be 7.5% p.a., split into 3.5% p.a. in BTC and 4% p.a. in DFI.
As BTC closes at US$13,000, which satisfies the condition for bonus tier (i.e. US$12,500 or higher) additional return would be 2.5% p.a. in BTC.
Total return would thus be: 10% p.a.
Said user would thus be receiving:
- 10 BTC (entry amount)
- 0.0264249 BTC (BTC return at 3.5% p.a.)
- US$301.32 worth of DFI (DFI return at 4% p.a.)
- Bonus 0.01896023 BTC (Bonus BTC return at 2.5% p.a.)
Therefore, total amount received would be: 10.04538513 BTC + US$301.32 worth of DFI