Cake Transparency Report Q2 2020 (English)

In order to give our customers and partners a few insides into what’s happening behind the curtain at Cake, we would like to publish our quarterly board report. Please understand, we have removed sensitive information where necessary. For more information please visit: https://www.cakedefi.com

Below you can see the full text, but if you want, you can access the board reports here:

Agenda

Link to Agenda

Q2 2020 Executive Summary:

Link to Executive Summary

DIRECTIVES Q3 2020:

Link to Directives

Q2 Transparency Report Video:

Join us LIVE to discuss the Q2 Transparency Report on Friday, July 17th 2020 at 2pm Singapore Time:

We hope you appreciate the insights!

Thanks for your support and happy baking — Have fun! :)

DISCLAIMER

This transparency report does not constitute nor imply a prospectus of any sort. No wording contained herein should be construed as a solicitation for investment. Accordingly, this transparency report does not pertain in any way to an offering of securities in any jurisdiction worldwide whatsoever. Rather, this transparency report constitutes a description of the development and distribution of Cake. Do not trade or invest in any tokens, companies or entities based solely upon this information. Any investment involves substantial risks, including, but not limited to, pricing volatility, inadequate liquidity, and the potential complete loss of principal. Investors should conduct independent due diligence, with assistance from professional financial, legal and tax experts, on topics discussed in this document and develop a stand-alone judgment of the relevant markets prior to making any investment decision.

This document does not constitute nor imply a final technical specification of Cake. Information presented in this transparency report, technical or otherwise, is meant to outline general ideas, designs and use-cases and is subject to change with or without notice. For the latest up-to-date technical specifications, check out the updates and documentations on the official website www.cakedefi.com. The graphs, charts and other visual aids are provided for informational purposes only. None of these graphs, charts or visual aids can and of themselves be used to make investment decisions. No representation is made that these will assist any person in making investment decisions and no graph, chart or other visual aid can capture all factors and variables required in making such decisions.

While this transparency report was compiled with the greatest care possible, it cannot be guaranteed that all information is complete or accurate. The information contained in this document may include, or incorporate by reference, forward-looking statements, which would include any statements that are not statements of historical fact. No representations or warranties are made as to the accuracy of such forward-looking statements. Any projections, forecasts and estimates contained in this document are necessarily speculative in nature and are based upon certain assumptions. These forward-looking statements may turn out to be wrong and can be affected by inaccurate assumptions or by known or unknown risks, uncertainties and other factors, most of which are beyond control. It can be expected that some or all of such forward-looking assumptions will not materialize or will vary significantly from actual results. For any questions on a specific subject covered in this document, please contact us on support@cakedefi.com

Message from the CEO about Q2 2020

Dear Cake Pte Ltd board!

The second quarter of 2020 was one of the most exciting quarters in my business career — not only because we celebrated our 1-year anniversary on June 7th 2020. Due to COVID-19 there was such an intense focus on each and every goal as it became the welcome diversion from not just being bored at home, since people around the world were pretty much on lock down. It is mind-blowing to see what a small team of extremely talented, highly energetic and laser-focused people are able to achieve in very little time. Eventually, all the hard effort paid off, and we cleared everything from our quarterly target list. Let me give you a few of the highlights, of the details which you can read below:

  • First and foremost, we handed our PSA license application in to becoming a licensed entity here in Singapore. Our team did a fantastic job on the tedious task of filling out close to a hundred pages of documents. We are now waiting for feedback from the regulator MAS, but we are very positive. This license was essential to continue operating and was a make or break.
  • Financially speaking, Q2 2020 was our first profitable quarter and our liquid internal funds grew close to give us a solid runway of around 18 months in case any revenue would dry up. Still, I am expecting cashflow positivity or neutrality going forward.
  • Moving on to the business side, our target was to grow 5% Week over Week (WOW). This was an aggressive goal as we had pretty much no marketing budget and had to do most of that growth based on organic word of mouth marketing. Yet, we achieved to end the quarter at slightly above our original target. In general our entire community and customer base has become very international, which will be a great base to continue this aggressive growth.
  • Our Assets Under Management (AUM) grew by an astounding 12.75% WOW. We decided to change the tracking of AUM from USD to BTC, since the price of BTC in USD is a factor we cannot influence. We crossed the 1,000 BTC mark during Q2, which is very exciting.
  • Our churn rate (https://en.wikipedia.org/wiki/Churn_rate) is getting extremely high and it shows that once a user tests Cake, she stays and adds even more funds. This can be seen in the average user having approximately 150% more funds in when compared to the end of Q1.
  • All this was possible as the tech and product team around U-Zyn laid a fantastic foundation with a solid infrastructure that is able to handle all this traffic. Our main focus here was on adding Ethereum Lending called “ETH Lapis” (https://medium.com/@cakedefi/get-5-on-ethereum-per-year-3ff69b12849d) and to integrate DeFiChain’s DFI token for staking (https://medium.com/@cakedefi/listing-of-new-staking-coin-on-cake-dfi-including-launch-bonus-a4f42e328032). Our Bitcoin and Ethereum batches are growing in size and are filling up almost every week.
  • Right at the end of this quarter we added our affiliate program, of which we have high expectations for the upcoming quarters.
  • Our entire operations lead by Bettina have become more streamlined and efficient, reducing mistakes and resulting in fewer cost.
  • While we hired five new team members, we lost one team members due to personal health reasons, thus growing our team by four team members in Q2, making our total team count now 19 team members. Everyone is working remotely at the moment until the COVID-19 situation allows for our co-working space to open up again.
  • DeFiChain went live on May 11th 2020, Bitcoin’s third Halving Day (https://mainnet.defichain.io). This was a Hercules-task by the team and the community appreciated it with great support. We did not do an ICO but rather followed Bitcoin’s original credo of community first. We airdropped free DFIs, the blockchain’s native token, to existing Cake users, and we are using DFI as an additional promo tool creating value that way. DFI started trading on LAToken at the beginning of June: https://latoken.com/exchange/DFI-BTC.

I know our successes during Q2 2020 are still relatively small when comparing them to other much larger companies, however it shows that we have a strong product-market-fit, and we are clearly on the right track. All the puzzle pieces are on the table and it is up to us to build the most beautiful puzzle out there.

Please find below the details of these highlights and in the CEO directives you will find my personal thoughts on the upcoming quarter.

I am very much looking forward to our Q2 board meeting on July 3rd 2020,

Julian

ATTENDEES

Julian Hosp — Executive Chairman

U-Zyn Chua — Executive Board Member

John Rost — Non-Executive Board Member

Howard Fineman — Investor & Non-voting Observer

Bettina Hosp — Secretary

DATE & TIME

9 am on 3rd of July 2020 (SGT)

9 pm on 2nd of July 2020 (EST)

VENUE

[removed]

AGENDA OF APPROX. 2 HOURS

Section 1 — Approval (5 minutes)

  • Brief recording (only this session and the very end will be recorded!) of attendance and statement of time & date
  • Approval of Minutes — Q1 2020
  • Approval of Agenda
  • Approval of Next Board Meetings: [removed]

Section 2 — Reflection on Executive Summary (25 minutes)

  1. Finance
  2. Sales, Marketing, Communications & Community
  3. Engineering
  4. Product
  5. Operations
  6. Legal
  7. Compliance
  8. Human Resources
  9. Business Development
  10. Research and Development (DeFi)

Section 3 — CEO Directives (80 minutes)

Section 4 — Assign Action Items & Follow Ups (5 minutes)

Section 5 — Debrief (5 minutes)

  • Brief recording (only this session and the very end will be recorded!) of attendance and statement of time & date

Adjourn Meeting

ATTENDANCE

Beginning:

I (full name) & (title) hereby confirm that I am attending the beginning of the Cake Pte Ltd board meeting at (date & time & timezone) via (technical medium or in person) and I have a clear line to understand (and see) what is being discussed and I can be heard (and seen).

End:

I (full name) & (title) hereby confirm that I have attended the entirety of the Cake Pte Ltd board meeting’s agenda at (date & time & timezone) via (technical medium or in person) and I have had a clear line to understand (and see) what was being discussed, and I was able to be heard (and seen).

  • U-Zyn Chua
  • John Rost
  • Howard Fineman
  • Bettina Hosp
  • Julian Hosp

1. FINANCE

Last quarter review

  • PnL & Balance Sheet restructuring
  • Bringing in Accountant in extended function to cover more hours
  • Accounting & Full reporting access to all Crypto Wallets for more automation
  • Balance Sheet in SGD → [removed in public version]
  • Balance Sheet in USD → [removed in public version]
  • PnL & 2020 Forecast in SGD → [removed in public version]
  • PNL & 2020 Forecast in USD → [removed in public version]

Next quarter review

  • Plan: Cashflow neutral until year-end
  • Approve Budget for next quarter in executive summary → [removed in public version]

Challenges

  • Uncertainty around crypto prices

2. SALES, MARKETING, COMMUNICATIONS & COMMUNITY

Last quarter review

GENERAL REVIEW:

  • Focus on 5% Week over Week AUM growth was very successful
  • Continued Partnerships with Coins
  • Built and grew Social Media Presence
  • Listing on more DeFi & Staking sites
  • Launched Affiliate program
  • Automated integration with Email Program to for better targeting

USERS:

User Growth:

  • End of Q4 2019: 36% growth in Q4 2019
  • End of Q1 2020: 60% growth in Q1 2020
  • End of Q2 2020: 90% growth in Q2 2020

Week over Week user growth:

  • Q4 2019: 2.6% week over week user growth
  • Q1 2020: 3.9% week over week user growth
  • Q2 2020: 5.5% week over week user growth (Target was 5% WoW growth)
  • Target Q3: 10% week over week user growth

ASSETS UNDER MANAGEMENT:

Total Assets under Management:

  • End of Q4 2019: 48% AUM growth in Q4 2019
  • End of Q1 2020: 258% AUM growth in Q1 2020
  • End of Q2 2020: 300% AUM growth in Q1 2020

Week over Week total assets under management (AUM) growth:

  • Q2 & Q3 2019: not representative
  • Q4 2019: 3.3% week over week AUM growth
  • Q1 2020: 11.2% week over week AUM growth
  • Q2 2020: 12.75% week over week AUM (in BTC) growth (target was: 5%)
  • Target Q3 2020: 15% week over week AUM (in BTC) growth

SOCIAL MEDIA:

YouTube (https://youtube.com/cakedefi):

  • End of Q3 2019: 1,200 subscribers
  • End of Q4 2019: 1,400 subscribers (17% growth this quarter)
  • End of Q1 2020: 1,570 subscribers (12% growth this quarter)
  • End of Q2 2020: 1,967 subscribers (25% growth this quarter)

Facebook (https://facebook.com/cakedefi/):

  • End of Q3 2019: 501 Followers
  • End of Q4 2019: 551 Followers (10% growth this quarter)
  • End of Q1 2020: 571 Followers (4% growth this quarter)
  • End of Q2 2020: 864 Followers (51% growth this quarter)

Twitter (https://twitter.com/cakedefi):

  • End of Q3 2019: 700 Followers
  • End of Q4 2019: 900 Followers (28% growth this quarter)
  • End of Q1 2020: 1074 Followers (19% growth this quarter)
  • End of Q2 2020: 1,467 Followers (37% growth this quarter)

Reddit (https://www.reddit.com/r/cakedefi/):

  • End of Q3 2019: 50 Readers
  • End of Q4 2019: 52 Readers (4% growth this quarter)
  • End of Q1 2020: 55 Readers (6% growth this quarter)
  • End of Q2 2020: 97 Readers (76% growth this quarter)

Linkedin (https://www.linkedin.com/company/cakedefi/):

  • End of Q3 2019: 602 Followers
  • End of Q4 2019: 703 Followers (17% growth this quarter)
  • End of Q1 2020: 838 Followers (19% growth this quarter)
  • End of Q2 2020: 964 Followers (15% growth this quarter)

Telegram EN (https://t.me/CakeDeFi_EN):

  • End of Q3 2019: 200 Members
  • End of Q4 2019: 320 Members (60% growth this quarter)
  • End of Q1 2020: 386 Members (21% growth this quarter)
  • End of Q2 2020: 508 Members (32% growth this quarter)

Telegram DE (https://t.me/CakeDeFi_DE):

  • End of Q3 2019: 901 Members
  • End of Q4 2019: 1003 Members (11% growth this quarter)
  • End of Q1 2020: 1104 Members (10% growth this quarter)
  • End of Q2 2020: 1334 Members (21% growth this quarter)

Next quarter preview

  • Focus on Affiliate Program
  • Use automated emails to bring up deposit percentages
  • Focus on SEO
  • Get to 10% week over week growth like PayPal
  • Grow the English & Chinese community stronger
  • Continue Partnerships with Coins
  • Build and grow Social Media Presence

Challenges

  • Budget approval

3. ENGINEERING

Last quarter review

  • Engineering team is lean but very efficient –> delivered a lot of products in Q2 2020.
  • Members of the engineering team have now on average worked with us for over a year now — for the first time.
  • Team has started to find its momentum and each member is performing their roles very well.
  • Our team for Pool, soon to be simply known as Cake, led by Ben, is performing very well, handling releases and team management very well.
  • Ahmed has joined us for a week now, is very experienced and it looks like we have found the right guy to head the DeFiChain team.
  • Upgraded our staking nodes with 2 major hardforks: PIVX and Zcoin

Next quarter preview

  • Tightening of security of Cake with a full restructuring of our websites and services.
  • Our code is a year old now and after many rapid iterations and releases, we have started to accumulate some technical debts. Some refactorization of the codebase is planned for Q3.
  • Updating of our products to comply with licensing requirements.
  • More product-specific updates to follow at Product and DeFi section.
  • Consolidation of all Cake offerings into one main site — https://cakedefi.com
  • We will still be growing the team and will continue to look out for good experienced developers to join us. E-Mail us at team@cakedefi.com if you are interested.

Challenges

  • Hiring while growing will always be challenging. We do hit a sweet spot with our team strength now.
  • Blockchain engineers are hard to come by. We’ll continue to keep a lookout.
  • With more products and DeFi Chain now live, workload and responsibilities for engineers have increased.

4. PRODUCT

Last quarter review

  • 2 localisations added: Chinese and Italian
  • Launch of ETH Lapis
  • DFI staking on Pool
  • Launch of affiliate program
  • Staking of DFI on Pool
  • Sale of DFI slices (stakes) on Pool

Next quarter preview

  • DFI Freezer
  • USD Lapis — implemented via USD stablecoin
  • Engineering refactorecations to repay our technical debts
  • Fiat integration

Challenges

  • Integration of a USD stable coin regarding regulatory uncertainty
  • Cost / reward of new coins
  • Discussion of next verticals → CEO directive discussion

5. OPERATIONS

Last quarter review

  • Translation and Setup of Chinese & Italian Website & Knowledge-base
  • Setup & execution of flows for Lapis Products (BTC/ETH)
  • KYC & User Information Improvements

Next quarter preview

  • Hire German-speaking Operations, Marketing & Customer Service Member (will start July 6th to support Ops and Marketing/Social Media, Community Management)
  • Chatbot Function via Zendesk on Website
  • VIP Program for important customers with enhanced customer service options (direct Telegram Messages, faster turnaround time, dedicated CS person)
  • Expanding Admin Panel overview for users & functions for Admin such as Verification Email resending, Password reset, full history of transactions
  • Tools for better CRM

Challenges

  • Scaling
  • Diversification of Risk

6. LEGAL

Last quarter review

  • Realigned with our Legal Advisor on the legal deliverables
  • Review of in house contract templates

Next quarter review

  • Review of in house contract templates
  • Support in any cross-border HR matters
  • Employee share option scheme

Challenges

  • General uncertainties around crypto legal
  • Some uncertainties around employment laws for distributed workforce in different jurisdictions

7. COMPLIANCE

Last quarter review

  • Submit PSA license application with MAS in Singapore
  • Review KYC process and policy, including whether to allow corporate customers

Next quarter review

  • Engage with MAS on their review of our license application
  • Review internal control and systems to align with MAS requirements
  • Onboard corporate customers maybe at the end of the quarter
  • Compliance with Personal Data Protection Act
  • Compliance with FATCA/CRS

Challenges

  • General uncertainties around crypto compliance

8. HUMAN RESOURCES

Last quarter review

  • Hired 5 team members (3x engineering, 1x compliance, 1x support)
  • Let go of 1 team member due to personal reasons
  • 19 team members total as of beginning of Q3 2020

Next quarter review

  • We look to grow the team by around 7–10 new team members in Q3 2020. We will have stringent hiring limits for new team members and not hire junior people for now.
  • Hire 1x C++ engineer
  • Hire 2x JS engineers
  • Hire 1x head of marketing
  • Hire 1x business development manager
  • Hire 1x designer
  • Hire 1x in-house recruiter
  • E-Mail us at team@cakedefi.com if you are interested.

Challenges

  • With the coronavirus crisis the tides have turned and now we have many potential team members interested in Cake

9. BUSINESS DEVELOPMENT

Last quarter review

  • Main focus here was R&D work For DeFiChain

Next quarter review

  • Hire a Business Development Manager for scaling this work

Challenges

  • Time

10. RESEARCH & DEVELOPMENT (DeFiChain)

Last quarter review

Next quarter review

  • DFI Airdrop for BTC holders
  • DFI competitions and airdrops on LAToken and other exchanges
  • At least 2 more exchanges (1 Top Exchange) for DFI for pricing feeds
  • At least 1 other staking service for DFI
  • GUI launch: allowing users to transact DFI easily and independently
  • Tokenisation support on DeFi Blockchain
  • DEX support on DeFi Blockchain
  • More Details: https://docs.google.com/document/d/1REcBOKgUYpfszV2pw0lJfRau2W5NlV4ToHUg4WdxG5Y/edit#

Challenges

  • Bringing liquidity from Ethereum DeFi onto DeFiChain
  • Doing things that no one else has done before

Message from the CEO about Q3 2020

Dear board members,

while in Q2 we hit all our targets and our growth numbers based on percentages all look great (which are all things we should be very proud of), it is now about scaling these numbers to play in the big boy league. For this, I would like to bring our focus onto three things, that we need to discuss during our board meeting:

  1. Marketing & Biz Development: We need to decide on a budget to achieve aggressive growth. Generally speaking I would like to see us be among the Top 3 in crypto lending, while keeping 18 months runway as an insane stretch goal at the end of 2020 — still quite some way to go in those upcoming six months.
  2. Product: While I believe we have a solid product base, which may allow us to achieve the above mentioned stretch goal, we need to brainstorm for another product vertical that is unique to the market out there.
  3. DeFiChain: I would like to discuss how to keep DeFiChain decentralized and as much separate from Cake Pte Ltd as possible, which is essential for building a successful properly decentralized blockchain.

A few other points I expect us to achieve in Q3 that should be relatively straight forward:

  • Redesign of the www.cakedefi.com and www.defichain.io websites, which have grown and branched out over the past year to make them more user-friendly again.
  • Refactorization of our back end to clean up some technical debt.
  • Integrate DFI as a utility token on Cake to create even more DeFiChain fans or DeFiers.
  • Have most of our team be paid in bitcoin, which is something we already started, but it is something we want to expand in order to spend what we earn, namely crypto.
  • Better integration of our e-mail program with our platform to be even better in touch with our customers.
  • Expand our admin tool insights
  • Continue our work with MAS for our license.
  • Hire 7–10 new team members around product, tech, marketing and design.

Most of the things described above are straight forward, and I am happy to answer any question you may have, yet, the five points I would like us to spend most of our time discussing deeper on are the following:

  1. Q3 Budget approval for aggressive growth
  2. Next product vertical
  3. DeFiChain outline
  4. OKRs for Q3 2020 (details removed in public version)
  5. No-List for Q3 2020 (details removed in public version)

Please come with your own thoughts and ideas, however you can find some of my own insights on the pages below.

Looking at the status quo and all the tools at our disposal, I feel we are very well-equipped for the upcoming quarter, which should be the stepping stone for Cake to grow from a small fledgling startup to an aggressively blitzscaling organization that can take it up with anyone in the crypto space.

I am looking forward to a fruitful discussion with you during the Q3 board meeting.

Regards,

Julian

DIRECTIVES Q3 2020

1. Q3 Budget approval for aggressive growth

Background:

So far we have built our customer base pretty much organically with our existing word of mouth marketing. In June, we have done a small test run with performance based marketing, which has gotten us great Customer Acquisition Cost (CAC). This is not really representative of the actual CAC yet though, since it was more of an initial test.

Considering our stretch goal of being among the top 3 in crypto lending by the end of the year, it is clear that we have to invest heavily into marketing and brand building if we want to hit these aggressive targets. Our organic reach will definitely increase and our affiliate program that we just launched end of June 2020 will surely help, yet we have to allocate a large amount of our monthly budget into growing the customer base.

Considering our competition, we should not be too shy about going all out in this department in my opinion.

Additionally, I would like to hire a head of marketing and a business development manager to help with B2C and B2B.

Decision to vote on:

Are you ok with a monthly budget proposal laid out in the Financial Section of the Executive Report? Do you have further suggestions or recommendations that could help us even more on this?

Decision: unanimously approved.

2. Next Product Vertical

Background:

So far our 3 sources of revenue are the following:

  1. Staking (DFI, Dash, PivX, Zcoin)
  2. Lending = Lapis (Bitcoin & Ethereum)
  3. Coinswap from Bitcoin & Ethereum to the other coins (this revenue ties into the other two)

Neither service is exclusively offered by us, but we have main competitors in all product verticals and users could actually do all the services by themselves in case they have the financial and technical capabilities. When asking our users why they entrust Cake with their funds it is always the same answer: “I want convenience and I trust Cake more than I trust myself.”

Convenience comes from great user experience, and we create trust through transparency and a solid track record. Building on top of this I believe we need to provide even more services to our users in Q3 that leverage these strengths.

When asking users, what feature they would like to see Cake offer next, it is one or more of the following three:

  1. Fiat onramp
  2. App
  3. Cake fund for easy access to other investments

Taking the above mentioned points into consideration, I could see us add one or more of the following verticals:

  • Fiat lending / USD Lapis: Users would get cashflow on their USD in form of the DAI stable coin which is based on Ethereum and is algorithmically pegged to the USD. The offer would be: “Get 8% on your USD.” Doing so would be very easy from a regulatory and technical standpoint. The main challenge here would be to offer a competitive product from an economic standpoint in comparison to other companies and also to find a partner that we trust and would handle the USD for an attractive return.
  • Fiat gateway into our services: Users could get into Staking or Lending straight from fiat either via credit card or bank transfer. The offer would be: “Get cashflow from crypto in the most seamless way even if you have no experience with Bitcoin & Co. yet.” Doing so would be relatively easy from a technical and regulatory standpoint as long as we use a third party to handle the fiat side, and we only receive bitcoins or ether. The main downside here are the economics due to the lack of widespread credit card acceptance.
  • Borrowing: Users could not only lend on Cake but also borrow against their deposits. This would allow us to list many more coins since we are pretty much independent of large partners to provide us with a return. Our pitch would be something like: “Lend and borrow crypto on a single platform.” Offering this would be quite challenging from a regulatory and technical standpoint. It would entail quite a lot of work. The economics and new user inflow could be very interesting though.
  • Yield Farming: Yield farming is the latest “hack” in the crypto finance space and is attracting a lot of liquidity on many DeFi protocols. However, yield farmers are always looking for opportunities like these, and we could be doing similar promotions to attract yield farmers, especially on our DeFiChain side. We could look to give away a relatively significant amount of DFI to attract initial DeFi users on DeFiChain, especially to trade on our DEX. We might even consider selling BTC at lower than market rate on DeFiChain to attract the initial users. Before we are able to issue BTC token in a decentralized manner, we may have to issue BTC-backed token on DeFi chain when DEX is ready.

Most users do not possess the technical capabilities and so right now our pitch on Cake could be something like: “Get up to 100% on your crypto per year with one of the most innovative ways in the blockchain ecosystem.” Integrating this would be very easy from a technical and regulatory standpoint. The main challenge here is that while these schemes are legal and not scams, they are often very short-lived and are insanely volatile. Also, there is no known competitor that is offering this to their users since this way to generate cashflow is very new. Later on, on DeFiChain we should surely drive interest as described above.

  • Gold, Stocks, Real Estate, etc.: We could add more regulated tokenized assets such as gold, stocks or real estate and provide cashflow from these. The pitch would be true to our vision of “a 1-stop platform for all your finances.” It would be quite easy from a technical standpoint and also there are no known competitors doing this. The main hurdle is a regulatory one as listing such assets would be pretty much a security, which is at odds with pretty much any other offer we have created so far.
  • DFI utility: We could add additionally benefits for people staking DFI on Cake.
  • Also, we should discuss if you have additional suggestions or ideas on what users might want to use!

Decisions to vote on:

Which product verticals, if any, should we add in Q3 2020?

Decision: It was unanimously decided to integrate the DFI token into the Cake ecosystem in a “freezer” system, where users could lock up DFI for a certain amount of time to gain extra benefits. Also, it was unanimously decided to offer USD Lending as DAI Lapis. If time permits, we will offer a fiat onramp.

3. DeFiChain

Background:

A blockchain only derives its full value when it is relatively decentralized and is driven by the community. Since any project is eventually built by people it is not all too easy to achieve this as it would mean to remove these people. This is why DeFiChain Foundation was set up separately from Cake Pte Ltd as a not for profit foundation, and there were free airdrops instead of an ICO for DFI.

At the moment there is still a strong overlap between the for profit Cake Pte Ltd and the non-profit DeFiChain Foundation, especially as the board of directors is the same and most people working on DeFiChain are employed by Cake.

Going forward DeFiChain will have to operate with slightly different values and full transparency to the community in comparison to the privately held Cake Pte Ltd, if we want to win on both ends.

The ultimate goal here has to be to provide value to Cake Pte Ltd shareholders while making DeFiChain work independently and providing value to the token holders. A few of those ideas that I would like to discuss are the following:

  • DeFiChain should hold public transparency meetings on YouTube where DeFiChain’s teach lead U-Zyn discusses the next technical steps and DeFiChain’s chairman Julian discusses the next business development steps. As a first date I would suggest July 11th at 8pm SGT (8am EST) as this would allow most people around the world to tune in.
  • Cake will be hired by DeFiChain Foundation for their services and treats its work as R&D to achieve decentralization of its lending and staking service. Over time, we probably have to separate the teams into a Cake-dedicated and a DeFiChain-dedicated team.
  • Cake should start offering a benefit for users to hodl DFI until more decentralized value of DFI via the blockchain arises. We were thinking of introducing status levels on Cake such as a Cake-Apprenticeship-Baker level and a Cake-Master-Baker level for staking a certain amount of DFI in vaults. Benefits could be better customer support access, fewer fees or more affiliate rewards. All this would massively increase DFI’s value.
  • DeFiChain will get its next decentralized use-case in form of a decentralized exchange this quarter, which is something the team is working on already.

Decisions to vote on:

To be honest, there are not many things to vote on here, this is rather a discussion on how to achieve shareholder value for Cake Pte Ltd while pursuing the interests of the non-profit that DeFiChain Foundation is and that has to become independent and decentralized in order to gain maximum value for DFI hodlers.

4. OKRs

(details removed in the public version)

OKRs for end of 2020

OKR Nr. 1: Be one of the top 3 players in the crypto lending space. We achieve this by focusing on 10–15% week over week growth and a reasonable marketing budget.

OKR Nr. 2: Be a sustainable company, while keeping around 18 months of runway in liquid assets. We achieve this by offering great services that users want and love.

OKR Nr. 3: Be the Nr. 1 in DeFi on Bitcoin by DeFiChain having many decentralized use cases. We achieve this by continuously focusing on building the DeFiChain team and fostering a decentralized community.

OKRs for Q3 2020

OKR Nr. 1: Be on the radar of most people in the crypto ecosystem by the end of Q3 2020. We achieve this by focusing on 10% week over week growth and a reasonable marketing budget.

OKR Nr. 2: Be a sustainable company, while keeping around 18 months of runway in liquid assets. We achieve this by offering great services that users want and love.

OKR Nr. 3: Get on the radar in the DeFi ecosystem by DeFiChain having the ability of tokenization and a DEX. We achieve this by continuously focusing on building the DeFiChain team and fostering a decentralized community.

5. NO-List for Q3 2020

(further details removed in the public version)

  • NO selling of Shares to other coins
  • NO exchange function
  • NO budget for events/trips
  • NO token launch platform
  • NO other language than English, German, Chinese and Italian
  • NO app -> planned for Q4 of 2020

We are looking forward to your feedback and questions in the comments.

We will keep focusing on our mission to bringing you cashflow from any type of blockchain asset in the most transparent and most attractive way possible in order to build a one-stop platform for you to manage all your finances in an automated AI-supported manner — be it crypto, real estate, stocks, gold, and much, much more.

We appreciate your trust and business.

Your Cake Team

LINKS & RESOURCES

Official Website: www.cakedefi.com

Twitter: www.twitter.com/cakedefi

Medium/Blog: https://medium.com/@cakedefi

Facebook: https://www.facebook.com/cakedefi

YouTube: https://www.youtube.com/cakedefi

LinkedIn: https://www.linkedin.com/company/cakedefi

Reddit: https://reddit.com/r/cakedefi

Telegram English: https://t.me/CakeDeFi_EN

Telegram German: https://t.me/CakeDeFi_DE

Telegram Italian: https://t.me/CakeDeFi_IT

Media & press resources: https://www.cakedefi.com/press/

For media inquiries, please contact: jessica@cakedefi.com

Work inquiries: We work with JavaScript and would like to have you on our team! Contact us on support@cakedefi.com

Earn Interest on your Cryptocurrencies. Simple. Safe. Sincere. https://cakedefi.com

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