Cake DeFi, the most dynamically growing fintech firm, which is based in Singapore and provides seamless DeFi access, has launched Ethereum (ETH/USD) staking, Invezz learned from a press release. With this, Cake is offering a tradable token, which users can sell in the open market, ensuring additional access to liquidity.
Generating more ETH in rewards
After completing the Ethereum Merge, the Ethereum Mainnet transitioned to proof-of-stake. The main chain appropriated the “Beacon Chain” as a result. The main chain requires validators to stake their crypto assets into a deposit contract, which is long-term.
ETH can be locked on the blockchain, and investors get the chance to validate transactions and generate rewards in ETH. The Ethereum Mainnet does not support unstaking at the moment, and investors who want to unstake ETH will have to wait for the Shanghai upgrade around a year from now.
Cake DeFi CEO and Co-Founder Dr. Julian Hosp said:
Ether staking is the most recent addition to our beloved staking service. We chose to host our own nodes in Singapore. Ethereum nodes are currently concentrated in Europe and North America. Hosting them will promote decentralization and improve the confidence of developers and investors in the region. Many platforms and exchanges won’t offer ETH unstaking until the Shanghai upgrade, but the open market will help us provide liquidity to our ETH stakers.
5% annual yield
With Cake’s new service, traders will get returns of around 5% a year. The platform will also auto-compound ETH staking every 12 hours to generate higher returns in comparison to non-compounded staking.
What’s more, people staking ETH on Cake DeFi will not have to wait for the Shanghai upgrade to unstake. They will be able to do so by trading a token on the open market.
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