In this review we explain why Piece-a-Cake is not an honest offer, it can’t earn you the returns it showcases on its website.
What is Piece-a-Cake
Piece-a-Cake is an online learning program that is supposed to teach you how to make huge money in decentralized finance (DeFi).
They say they will show you how to earn thousands of percent on your investments. You are supposed to belive that you can get up to 190,286% APY, which sounds ridiculous, doesn’t it?
You have to pay 11.99 USD to gain access to all the information. The sellers are James Renouf and Jeremy Kennedy.
Can you really multiply your money thousands of times in a year with Piece-a-Cake, is it a legit opportunity?
We are really struggling not to call Piece-a-Cake a scam, we believe it deserves such a label, but let’s say that is hugely dishonest. In this review we explain why.
They don’t tell you everything
Piece-a-Cake claims that it is very easy to make huge returns in DeFi, you just have to know where. And they want you to pay them to tell it to you.
Well, I can tell it to you for free, every screenshot with the big APYs on Piece-a-Cake’s official website comes from the DeFi platform called PancakeSwap.
PancakeSwap is not new, it has been around since 2020. It is a platform that runs in the Binance Smart Chain (blockchain), so it uses BNB for fees and it has its own token called CAKE that is used for incentives.
Now, if you go to PancakeSwap, you will be surprised that you won’t see the huge APYs that are shown on the Piece-a-Cake website. This is where Piece-a-Cake is being dishonest. Here is the explanation.
The huge APYs in the thousands of percent are only available on PancakeSwap for a very short period of time when new pools and farms are launched.
This is very normal for DeFi platforms, because when they open now pools/farms, they give each of them a certain amount of rewards for each block (or day or whatever period). This means that a fixed reward is divided between all the participants of a given pool/farm.
So in the first minutes after a new pool/farm is launched, there is only a few participants with a small amount of staked money, so the rewards are divided only between a small group of people, which means that the APY is huge. But it always lasts only for a few minutes, because as more people enter the pool/farm, the APY rapidly falls down.
If you look at PancakeSwap now, you will see that the highest APR for a farm is 225% and for a liquidity pool it is 110%. Quite a difference compared to what Piece-a-Cake is promising, isn’t it?
To sum it up, the APYs/APRs that Piece-a-Cake is showing on its website, thus selling you, are impossible to achieve. On PancakeSwap they are always valid only for a few minutes after the launch of a new pool/farm, and during such a period of time it will earn you close to nothing.
The best APR you can realistically get is about 200%. BUT…
Full of risks
After reading the paragraphs above, you might be thinking that 100 – 200% per year is still great. In normal circumstances yes, but in DeFi there are plenty of risks that mean that in real money you can easily lose when you participate in these pools/farms on PancakeSwap and similar platforms.
Here is the explanation.
Syrup Pools on PancakeSwap are an artificial construct that is based on money printed out of thin air.
They say you have to stake the platform’s main crypto, which is CAKE. But in reality it is not real staking, because PancakeSwap is not a standalone blockchain, it runs in the Binance Smart Chain (BSC). So it does not need to do anything to validate transactions, like for example real staking, this is taken care of by BSC.
So all you do is locking your CAKE in a pool, it has no real purpose, it brings no real value to the chain or platform. But if you lock your CAKE in a pool, you will get rewards, they will pay you either in CAKE or other cryptocurrencies.
In other words, they minted their crypto and if you lock their crypto they will give you more of the crypto they created. “They” being a broad term for crypto projects.
The biggest problem is that you need to buy and hold CAKE for that, and as every other crypto CAKE is not stable, its price is pretty wild.
Let’s take an example. You buy CAKE and stake it for a year in the Auto CAKE pool. The current APY is 60%. But if you look back, one year ago the price of CAKE was 10 USD, now it is 5 USD. So you make 60% in the pool, but you lose 50% on the value of CAKE. Your net gain is 10%. Not so attractive, is it?
If you look at the history of CAKE, it’s price has been as high as 40 USD just 10 months ago. So if you bought at the wrong time, you would be losing money right now even with the 60% APY!
To sum the pools up, your big risk is that the cryptocurrency you hold will lose in value and the APY won’t save you. Not to mention that the whole platform can go down, there have been countless DeFi hacks.
Farms on PancakeSwap are even more complicated and dangerous. Because you need to hold two different cryptocurrencies, lock them in a liquidity pool and then stake the LP token you get. The risk of losing money because the prices of the tokens you hold go down is not the only one.
There is this thing called impermanent loss that you can research to understand the risks of DeFi liquidity pools. The easy way to explain it is that your losses will always be greater and profits smaller than if you hold the tokens in your wallet.
So you need a huge APY to compensate for the impermanent loss and other risks. But big APYs are only on small tokens that often lose value quickly. So again, despite the APY being like 200%, you still can easily lose money in liquidity pools, it is far from uncommon.
Piece-a-Cake review – Conclusion
Piece-a-Cake is very dishonest, because it is advertising returns that you won’t be able to achieve on the platform they will tell you to go to, which is PancakeSwap. The APYs on their screenshots always last only for a few minutes, so they can’t earn you any noticeable amounts of money.
It is not possible to earn thousands of percent on DeFi platforms on a regular basis. You can be lucky with one token or two, but most people will just lose money because the vast majority of tokens on DeFi platform just lose value and the rewards from the pools and farms can’t compensate for that.