The leading and fastest-growing Singaporean fintech startup giving simple access to Decentralized Finance (DeFi), Cake DeFi, has released its newest feature, Ethereum (ETH) Staking, with the additional access to liquidity through a tradable token which can be traded on the open market.
Staking may be unlocked in advance of the Shanghai update with the use of a token that can be traded on the open market. Cake DeFi’s Ethereum nodes will encourage regional development and investment, promote decentralization, and relieve pressure on node operators in North America and Europe. Cake DeFi will increase network decentralization by providing a 5% staking payout on Ethereum via nodes in Singapore.
Due to the Ethereum Merge that was completed in September, Ethereum is now a proof-of-stake network rather than a proof-of-work network. The “Beacon Chain” was integrated into the main Ethereum chain because it enforces a long-term deposit contract as a means of rewarding nodes, also known as validators, for contributing to the network. An individual may stake ETH on the blockchain to participate in the validation of transactions and get more ETH as a reward. But the Ethereum network does not presently enable unstaking, so investors will have to wait until the Shanghai update (which might be a year or more away) to unstake their ETH.
Dr. Julian Hosp, Co-Founder and CEO of Cake DeFi stated:
“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.”
Users of Cake DeFi’s ETH Staking will get returns of roughly 5% each year. Cake DeFi’s ETH staking rewards will also be automatically compounded every 12 hours, resulting in much higher profits than with traditional ETH staking that does not use compounding.
Without needing to wait for the Shanghai upgrade, users of Cake DeFi’s ETH staking will soon be able to unstake through a token purchasable on the open market.
