Cake Board Report Q1 2020

  • Doing the extra fundraising at the end of 2019 turned out to be a win-win for all parties and the extra liquidity will make us very strong going forward. Obviously hindsight is always 20/20, but the decision to be willing to give up slightly more equity to get him on as an investor was the right move.
  • At the beginning of Q2 2020 (with all salaries and obligations paid) we have over a year worth of runway, excluding any revenue or further fundraising. We should therefore be in a strong economic position.
  • In Q1 2020 we have added the Bitcoin Lending service called Bitcoin Lapis (https://medium.com/@cakedefi/announcing-bitcoin-lapis-the-most-transparent-way-to-get-6-cashflow-from-your-btc-592c72073c3f) and with that we have seen a 60% growth in users in Q1 2020. U-Zyn and I have done several Q&A sessions with the community to answer all their questions: https://bit.ly/btclapisen
  • With that we were able to increase the average deposit per user by 200%.
  • Our total Assets under Management (AUM) have also seen an increase of over 200%.
  • We have started to list a new metric, that was used by PayPal in their incredible growth phase: Growth week over week. During their peak times with maximum expenses they managed 15% growth, which obviously is unsustainable in the long run but a great goal to achieve when blitzscaling. Depending on the number we choose to use, we are at around 4% right now.
  • Product and Tech have allowed us to get here and going forward I see them less of a limiting factor as over the past quarters, when the team was smaller and everything still had to be built. The team is in great shape and doing a fantastic job to scale further.
  • Hiring wise we have a good size team of approximately 15 team members. We might hire a few more, but not with much focus. Here it is quality over quantity. Salary wise we have been doing a great job in keeping costs low, while paying appropriately and fairly for the delivered value.
  • We have also decided to get our first co-working space at WeWork: https://www.wework.com/en-GB/buildings/71-robinson-rd--singapore Since our team has always worked remote, the current lockdowns do not affect us at all, which is very positive.
  • Operations-, Legal- and Compliance-wise everything is under good control. The main focus here for Q2 is to get the Head of Compliance and Legal on board, which we need until the end of Q2 to be fully compliant with the Payment Services Act in Singapore.
  • On the DeFi Chain side everything is ready for a Q2 launch, which will help us provide Bitcoin lending without a trusted third party and will also help us with raising additional funds.
  1. Compliance: We have to get the Digital Payment Token (DPT) license here in Singapore. While we are well-equipped, we still need the head of compliance in order to have all the pieces in place. There are not many things to discuss here, rather, this will be my personal responsibility to get it done.
  2. Marketing: While we still have some limitations, which were set by ourselves for risk management, on the funds we can handle from the users, we now have to start getting significant market share. While I have some good ideas on how to direct the company, I would like to discuss ideas on how to approach this matter in general. Also, looking at how PayPal grew their customer base by 15% week over week, I would like to discuss what key metric we should focus on to blitzscale as well.
  3. DeFi Blockchain: We are finally ready to launch our DeFi Chain built on top of Bitcoin. I would like to discuss the initial coin distribution and some details around the launch for Q2.
  • User insurance fund to being able to scale with adequate risk — this will also be a discussion point later on.
  • Moving into our co-working space once the COVID-19 situation calms down.
  • Launching Ethereum Lapis
  • Launch of our Affiliate program to aid with marketing.
  • I am not expecting to grow the team much other than getting our head of compliance on board and maybe 1–2 other team members.
  • Other points have been removed from the public version.
  1. Annual Marketing & Business Strategy Discussion
  2. DeFi Chain Launch
  3. Cashflow for 2020
  4. User Security Fund
  5. OKRs & No-List for Q2 2020
  • Julian Hosp — Executive Chairman
  • U-Zyn Chua — Executive Board Member
  • John Rost — Non-Executive Board Member
  • Bettina Hosp — Secretary
  • Howard Fineman — Investor & Non-voting Observer
  • Brief recording (only this session and the very end will be recorded!) of attendance and statement of time & date
  • Approval of Minutes — Q4 2019
  • Approval of Agenda
  • Next Board Meetings:
  • June 19th, 2020 9 am SGT (2020 Q2 board meeting): Certified Accounting Discussion
  • Sep 18th, 2020 9 am SGT (2020 Q3 board meeting): Marketing Strategy Discussion
  • Jan 15th, 2021 9 am SGT (2020 Q4 board meeting): Budget & Remuneration Discussion
  • Mar 19th, 2021 9 am SGT (2021 Q1 board meeting): Business Strategy Discussion
  • Brief recording (only this session and the very end will be recorded!) of attendance and statement of time & date
  1. Finance
  2. Sales, Marketing, Communications & Community
  3. Engineering
  4. Product
  5. Operations
  6. Legal
  7. Compliance
  8. Human Resources
  9. Business Development
  10. DeFi
  • Balance Sheet in SGD -> removed for public version
  • Balance Sheet in USD -> removed for public version
  • PnL in SGD -> removed for public version
  • PNL in USD -> removed for public version
  • Node & revenue summary -> removed for public version
  • We have over 12 months of runway
  • Cashflow positive is possible in Q2 2020
  • No Fundraising necessary right now
  • Focus on Week over Week user growth
  • Continued Partnerships with coins
  • Built and grew Social Media Presence
  • 36% user growth in Q4 2019
  • 60% user growth in Q1 2020
  • Q2 & Q3 2019: not representative
  • Q4 2019: 2.6% week over week user growth
  • Q1 2020: 3.9% week over week user growth
  • Target Q2 2020: 5% week over week user growth
  • End of Q2 2019: not representative
  • End of Q3 2019: 50% of total users had deposits
  • End of Q4 2019: 47% of total users had deposits
  • End of Q1 2020: 36% of total users had deposits
  • Q2 & Q3 not representative
  • 48% AUM growth in Q4 2019
  • 258% AUM growth in Q1 2020
  • Target in Q2 2020 is 5% WoW AUM growth
  • Q2 & Q3 not representative
  • Q4 2019: 5% growth in average deposit per user
  • Q1 2020: 191% growth in average deposit per user
  • Launch of Affiliate program
  • Focus on SEO
  • Get to 15% week over week growth like PayPal
  • Grow the English & Chinese community stronger
  • Continue Partnerships with Coins
  • Setup of API Emails to target Users better and more efficient
  • Build and grow Social Media Presence
  • Listing on more DeFi & Staking sites
  • more user diversification
  • Paid marketing
  • Expansion of engineering team with 2 new members (we let 1 go)
  • Went through a long series of interviews and candidates.
  • Team is stable now — with room for 2 or 3 more engineers, but we are no longer in dire need of engineering resources.
  • We are not in urgent need for a SysOps engineer. It is more impactful to have engineers than SysOps engineer at this stage.
  • Migrated key portions of codebase to TypeScript
  • Established Cake’s own internal engineering team for DeFi blockchain to enhance the engineering capability of our blockchain engineers andto provide a better release management and code review process.
  • Conducted a third-party security reviewer to perform system security audit.
  • Further additions of engineering team with 2 to 3 more mid-tier to senior engineers.
  • Not in urgent need anymore, but we will always hire when good developers come around.
  • DeFi blockchain financial dencentralization application (dapp) development
  • Tokenization support for DeFi Chain
  • Decentralized exchange with the goal to achieve decentralized lending by end of 2020.
  • Engineering focus will be largely around supporting DeFi chain mainnet — questions, articles and tooling expansions.
  • Engineering effort to support our increasing usage: e.g. more accounting tools, better integration with marketing tools, more automated fund management with adequate risk control.
  • DeFi blockchain team building
  • Very hard to locate and hire developers with open source blockchain consensus understanding — most blockchain developers are devs working on the higher level (dapps), not low consensus levels.
  • Will continue to look out for experienced blockchain developers
  • Completion of PoS and Bitcoin anchoring milestone.
  • Undergoing final stage of review and tooling setup.
  • BTC airdrop integration
  • DeFi blockchain public open source codebase published
  • Testnet is up
  • DeFi desktop UI design and frontend development is done
  • Launch of ETH Lapis
  • Integration of our affiliate program
  • Chinese version
  • Staking of DFI on Pool
  • Mainnet launch
  • BTC airdrop program launch
  • DeFi desktop UI integration
  • Integration of a USD stable coin regarding regulatory uncertainty
  • New Revenue Page with Filters to enable easy view on revenues per month in USD and Source Coin
  • Detailed Access to user information (Account Balances, KYC Status, Previous KYC, Access to KYC Data)
  • Withdrawal Dashboard: Filter for open withdrawals only to reduce risk of double sending funds
  • Lapis Product Page: Batch creation, settlement, trading
  • Live BTC Holdings overview to enable segregation of Funds
  • Hired a team assistant to assist with Customer Support, KYC, Chinese Translations and Lapis Product Trading Settlements
  1. What is Lapis?
  2. How is Lapis secure?
  3. Which coins should be used for Staking?
  • Extension of Knowledgebase to support BTC Lapis Product
  • Full Translation of Knowledgebase into Chinese
  • Translation and Setup of Chinese Website
  • Full Trading Overview with gain/loss calculation
  • Scaling
  • Diversification of Risk
  • More insights into Customer behavior
  • Legal review of T&Cs, Staking & Lending
  • Getting Kenneth Oh as Legal advisor
  • Hiring a Head of Compliance & Legal
  • General uncertainties around crypto legal
  • BTC Lapis
  • KYC process finished
  • Applied for Digital Payment Token license in Singapore -> needs to be finished until end of Q2
  • Finish Digital Payment Token license in Singapore
  • General uncertainties around crypto compliance
  • Have stringent hiring limits for new team members
  • Negotiate with WeWork to start later in case Singapore does not open up before May
  • Human Resources Tool for better tracking of absences & leave planning
  • Health Package for Employees (Alternative to insurance)
  • With the coronavirus crisis the tides have turned and now we have many potential team members interested in Cake
  • Lapis partners integrated
  • Removed from public version
  • Separating the good from the bad
  • Technical details for DeFi chain
  • First public code release of DeFi chain
  • DeFi chain client-side decentralized app (dapp) mockups and planning
  • Launch of DeFi Chain
  • Integration of DeFi chain with Pool
  • Staking support
  • Tokenization support on DeFi Blockchain
  • Marketing
  • It was decided to use user growth WoW as the KPI
  • Social Media
  • SEO
  • Affiliate marketing
  • Performance marketing
  • All on the DeFi Blockchain can be found on: www.DeFiChain.io
  • At the moment it is not possible to run Decentralized Finance (DeFi) on top of Bitcoin, only on Ethereum.
  • Ethereum and ERC20 tokens accounts to only <15% of the total crypto economy. The entire DeFi space today is missing out on the rest of the 85% of the crypto market.
  • Decentralized Finance would allow users to stay in control of their private keys while Cake would be the user-experience-platform
  • With DeFi Chain we plan on bringing the entire crypto economy, esp. outside of Ethereum to a dedicated DeFi blockchain secured with Bitcoin.
  • We have been working on it for the past 9 months and are now ready to launch
  • We are not the only team trying to achieve something like this. The main competitor is Rootstock, who wants to bring full Turing completeness to BTC, which has similar issues as ETH. https://www.rsk.io
  • We will launch DeFi Chain on (date removed from this version)
  • DFI can be staked through Pool
  • New token is emitted at an estimated rate of rate 200 DFI every 30 seconds (10% of that goes to community fund) for the first year. [~210mil new DFI in a year]
  • Emission rate will be lowered after 1 year according to the schedule.
  • Looking at our burn-rate, we have a runway of around 1 year, excluding any marketing-cost.
  • No need for any fundraise for now.
  • The larger we get, the more risk we have in case anything goes wrong with our funds.
  • So far, we have limited the batches in order to take a risk based approach.
  • Many companies such like Binance or Coinbase entertain a security fund, where a certain % of all their revenue moves in to cover potential losses (for example Binance had no problems covering 60 Mio USD in June 2019, when they were hacked)
  • The suggested name could be: “Secret Cookie Stash SCS”: Cake’s emergency insurance fund.
  • This solution would allow us to offer something, without any obligations and would bring peace of minds to users.
  • It was agreed to start this fund
2020 OKRs Cake Pte Ltd
Q2 2020 OKRs Cake Pte Ltd
  • NO fiat Gateway -> later in 2020
  • NO full refactorization of the codebase -> later in 2020
  • NO selling of Shares to other coins -> later in 2020
  • NO corp account acceptance -> later in 2020
  • NO revamping/redesigning of website -> later in 2020
  • NO token launch platform -> later in 2020
  • NO other language than English, German, Chinese -> later in 2020
  • NO app -> later in 2020

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Cake DeFi

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