Good that someone is finding new ways of earning some passive income.
Well I am currently testing out CakeDEFI for their lending and staking sections. Currently they are able to Lend for following coins:
Bitcoin Lending (Expected APY 6%)
ETH Lending (Expected APY 6%)
USDC Lending (Expected APY 7%)
USDT Lending (Expected APY 7%)
How the lending section works on the CAKE has been clearly sorted out for each of the above coins.
For example, if you gonna do it with the bitcoin then you can see the following illustration which I have quoted directly from website itself:
They have segregated the returns based on the market price change, the amount you invest with the tier at which you are and spot pricing factors. I advise you to go through the use case properly to understand what you gonna get in return for your money.
Illustrations
For illustrative purposes, say a Lending batch provides the following:
Guaranteed BTC return of 5% BTC p.a.
Bonus BTC return of 2.5% BTC p.a. if BTC spot price at batch expiry is US$12,500 or more.
E.g. Spot price at batch start date is US$10,000.
A user enters with 10 BTC.
Sample scenario 1: Bitcoin price stays relatively consistent throughout the batch period
Spot price at batch expiry is US$10,500 (+ US$500 compared to start price)
Return would thus be 5% p.a. in BTC.
Said user would thus be receiving:
10 BTC (entry amount)
0.0374982 BTC (BTC return at 5% p.a.)
Therefore, total amount received would be: 10.0374982 BTC
Sample scenario 2: Bitcoin is priced lower at batch expiry
Spot price at batch expiry is US$2,500 (- US$7,500 compared to start price)
As Lending provides a guaranteed base return, user return would still be 5% p.a. in BTC.
Said user would thus be receiving:
10 BTC (entry amount)
0.0374982 BTC (BTC return at 5% p.a.)
Therefore, total amount received would be: 10.0374982 BTC
Sample scenario 3: Bitcoin is priced higher and hits a bonus tier
Spot price at batch expiry is US$13,000 (+ US$3,000 compared to start price)
Base return would be 5% p.a. in BTC.
As BTC closes at US$13,000, which satisfies the condition for bonus tier (i.e. US$12,500 or higher) additional return would be 2.5% p.a. in BTC.
Total return would thus be: 7.5% p.a.
Said user would thus be receiving:
10 BTC (entry amount)
0.0374982 BTC (BTC return at 5% p.a.)
Bonus 0.01896023 BTC (Bonus BTC return at 2.5% p.a.)
Therefore, total amount received would be: 10.05645843 BTC
Now they do claim there is guaranteed returns on your lending amount however it is guaranteed for the base returns.
I have actually ended up with CAKE Defi because I am in need of money, so got to know about this lending services.
I would suggest you to learn the website before you go ahead. Though Trustpilot has claimed the service is legit, you are requested to have your own research. KYC is mandatory on this project. 
