Cake DeFi, the Singapore-based fintech firm providing easy access to Decentralised Finance (DeFi), has launched its latest feature – Ethereum (ETH) Staking – with the added access to liquidity via a tradable token which can be sold in the open market.
With the recent Ethereum Merge that concluded in September, Ethereum has transitioned from a proof-of-work to a proof-of-stake system. As a result, the "Beacon Chain" was merged into the Ethereum main chain, which requires nodes, or validators, to stake their cryptocurrency into a long-term deposit contract. Retail investors can lock ETH up on the blockchain to earn the opportunity to validate transactions and yield more ETH as a reward. However, unstaking is currently not supported by the Ethereum network and investors will have to wait for the Shanghai upgrade to unstake their ETH, which could be a year or so later.
“ETH Staking is the latest addition to our popular Staking service. We made a deliberate decision to host our own nodes in Singapore. At the moment, Ethereum nodes are mostly concentrated in North America and Europe. Hosting our own Singapore-based nodes will boost the confidence of investors and developers in the region and support the spirit of decentralization. Many exchanges and platforms are not offering ETH unstaking until the Shanghai upgrade but it was important for us to provide liquidity to our ETH stakers which will be achieved via an open market,” said Dr. Julian Hosp, Co-Founder and CEO of Cake DeFi.
Cake DeFi’s ETH Staking will allow users to enjoy around 5% annual percentage yields in returns. Returns in Cake DeFi’s ETH staking will also be auto-compounded every 12 hours to generate significantly more returns compared to non-compounding ETH staking.
Users of Cake DeFi’s ETH staking will also soon be able to unstake via a token tradable on the open market without having to wait for the Shanghai upgrade.
Re-disseminated by The Asian Banker