CAKE
Have your CAKE and eat it too!
At the heart of Red Clover's DeFi solutions is the CAKE fund, a groundbreaking financial initiative that empowers individuals and institutions to earn passive income through perpetual investment in U.S. Treasury securities. CAKE's innovative approach addresses several key challenges in the current financial landscape:
- Macroeconomic Stability: By establishing a robust domestic base of perpetual buyers for U.S. Treasuries, CAKE helps reduce dependence on foreign investors and supports government debt management.
- Individual Financial Empowerment: CAKE enables individuals to simultaneously spend and invest every dollar earned, fostering financial growth for future generations without requiring them to become active investors.
- Sustainable Wealth Transfer: CAKE offers a sustainable path for wealth transfer across generations without relying on volatile cryptocurrencies or tokens.
- Banking Sector Innovation: CAKE allows banks to emerge as significant custodians of U.S. Treasuries and operate USD repo facilities, attracting new customers and maximizing balance sheet leverage.
Key Features and Benefits of CAKE
- Joint Account Mechanism: Users commit a portion of their USD/USDC salaries to a joint account, forming a smart contract that ensures transparency and security.
- Open Repo Line: CAKE has secured an open repo line with partner banks at favorable terms, allowing for maximum leverage of user funds and demonstrating the bank's confidence in the CAKE model.
- Yield Distribution: After covering repo interest and operating expenses, CAKE distributes the remaining yield to users as passive income, deposited directly into their digital wallets.
- Seamless Integration: CAKE is seamlessly integrated with existing financial systems, making it easy for users to participate and for banks to collaborate.
Partners
Financial institutions, pension funds and insurance companies each have motivating reasons to explore more with the CAKE team.
Seizing the Power of DeFi
Pension System in a Pocket
US citizens become largest direct US treasury investor
Pension System in a Pocket
Every citizen’s hard-earned money allows to borrow an additional $ from the Fed to invest into a $ of US treasuries (Fed repo facility access through decentralized pooling).
Invest & Spend ALL income
US citizens become largest direct US treasury investor
Pension System in a Pocket
The original $ can be freely spent whilst the US treasuries investment trickles interest income into citizen’s wallet, forever.
US citizens become largest direct US treasury investor
US citizens become largest direct US treasury investor
Escaping the debt death spiral and rates determination by the government (not the Fed)
For 100 million US citizens earning $50k annually on average, annual US treasury purchases of up to $5 trillion, revolving and cumulative. This removes the dependency on external lenders.
Escaping the debt death spiral and rates determination by the government (not the Fed)
Escaping the debt death spiral and rates determination by the government (not the Fed)
Escaping the debt death spiral and rates determination by the government (not the Fed)
Revolving reinvestment through US treasury purchases suppresses rates sustainably, allowing the US administration to escape the debt death spiral.
FAQs
Escaping the debt death spiral and rates determination by the government (not the Fed)
FAQs
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