Cake DeFi, an innovative fintech platform that leverages the benefits of decentralized finance, has added Ethereum staking to its growing list of DeFi services. The Singaporean company announced the addition of the new feature on September 6, 2022. The feature is complemented by a tradable token on the open market, which will offer ETH stakers access to liquidity.
As one of the fastest-growing DeFi companies in Asia, Cake DeFi offers easy access to decentralized finance. Its latest feature comes at the right time, a few weeks after the hugely important “Ethereum Merge”. It offers a 5% staking yield on ETH.
New opportunities for crypto investors
The long-awaited Ethereum Merge was concluded in September, meaning that the network has fully transitioned from a Proof-of-Work to a Proof-of-Stake consensus mechanism. This implies that validators can now stake their cryptocurrency into a long-term deposit contract for rewards.
Undoubtedly, the Ethereum Merge has created opportunities for retail investors too. They can now lock their ETH for the opportunity to validate transactions and earn rewards for their contributions. However, investors will have to wait for the Shanghai upgrade before they can unstake their assets. Cake DeFi have found a way around this limitation by allowing users to essentially unstake their ETH with a token that’s tradable in the open market.
Creating opportunities and improving decentralization
In addition to joining the ranks of ETH staking service providers, Cake DeFi has made a relevant move to promote the decentralization of the Ethereum network. Binance, Coinbase, Kraken, and Lido are the top staking platforms for ETH, and they control more than 50% of the stake on the network. These platforms have their nodes mostly based in the United States and Europe.
Cake DeFi has done something entirely different. Its nodes are based in Singapore, reducing the concentration of Ethereum validator nodes in North America and Europe. By enhancing the decentralization of Ethereum, the platform is encouraging developers and investors from every part of the world to step up their game as well.
Speaking about the latest feature, Cake DeFi’s Co-Founder and CEO, Julian Hosp, said:
“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 utility to our ETH stakers, which will be achieved via an open market”.
Wrapping up
Cake DeFi has not just introduced ETH staking – it did so in a well thought out manner. In addition to an impressive 5% annual yield, its ETH staking will be auto-compounded every 12 hours. ETH stakers will also be able to effectively unstake before others, thanks to an upcoming tradable token that will be available on the open market.
