Recovery Seed Backup Devices

There is Cake and then there is the rest of Defi

When you check out all of the various Defi protocols out there you will notice that most of them are barely liquid.  They have a pool on Pancakeswap or they have a pool on Uniswap and that might be it.  That is not enough for me to feel safe.  I like to invest in coins and tokens that are liquid.  There is nothing more liquid in the world of Cryptocurrency than Binance.  Of course Binance could fail and have a rug pull but I don't think it is in their best interest.  They can make a lot more money by doing a good job and increasing the value of BNB.  

I bet someone at Binance want to get the market cap of BNB above Bitcoin and they have a whole team of geniuses on payroll to figure it out.  If they make a mistake, they have a good reason to fix it.  What happened to Iron Finance can happen to any token that doesn't have liquidity on Centralized Exchanges.

If you are going to do research and try to find the next best yield farm you may find that Jetswap and Wings are paying a crazy dividend.  So was Pancake Bunny before it broke.  So were a lot of sites like Goose Finance and Blizzard Finance.  Their yields may be good but their coin can't hold value so as you get more of them they become worth less.  If the pool on Pancake swap was to run out of funds, your coins would no longer be liquid.

With Cake you have lots of places to try and exchange your Cake coins if there is a bank run.  If the protocol was to break you should have the best minds of Binance trying to fix it.  If there was to be a giant robbery, it would steal mostly BNB coins which might not be very useful if Binance decides to Fork or do something to get them back.

While I don't think Cake and BNB is necessarily as Decentralized as some other finance, I find it safer from rug pools and liquidity pool theft.  I may be wrong and lose all my Cake coins but hopefully I will be the last one standing and have enough Cake that I have converted to Fiat before that time comes.  Let them eat Cake!

I am long Cake and I use the Auto Cake pool on Pancake Swap for the record.

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