Singapore’s fastest-growing Fintech firm Cake DeFi has added Ethereum Staking service to its platform with 5 percent returns through nodes based in Singapore. The company aims to offer ease of access to DeFi (decentralized finance) and has launched this new staking feature that will add liquidity access through a tradable token that can be sold in the open market.
Why the Change was Essential?
For your information, after the Ethereum Merge in September, the Ethereum network transitioned into a proof-of-stake system from a proof-of-work system. Resultantly, the Beacon Chain had to be merged into Ethereum’s main chain. This chain requires nodes also known as validators. Nodes are essential for staking the cryptocurrency into a long-term deposit contract.
Now retail investors can easily lock ether tokens on the blockchain and validate transactions and increase the yield as a reward. However, please note that the Ethereum network does not support unstaking at this time. Investors might have to wait for the Shanghai upgrade to unstake their ether token. This may take up to a year. But, the company also noted that ETH Staking users will soon be able to unstake without needing to wait for the Shanghai upgrade.
What are the Benefits of the Ethereum Staking Service?
The benefit of this new addition is that users can unstake at any time, which will enhance network decentralization and promote confidence among investors and developers in the region.
It is worth noting that unstaking before the Shanghai update would be possible through a token that could be traded in the open market. The newly added Ethereum nodes will support decentralization in its true spirit and reduce node concentration in Europe and North American markets.
The co-founder and CEO of Cake DeFi, Dr. Julian Hosp noted that the company made a “deliberate decision” to host their nodes in Singapore since, in Europe and North America, Ethereum nodes are extremely concentrated. This step will boost the confidence of developers and investors in the region as well as uphold the true 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.”Dr. Julian Hosp
5 Percent Annual Yields Offered
According to Cake DeFi, in return, the new ETH Staking feature will let users enjoy 5 percent annual percentage yields and the returns will be auto-compounded after every 12 hours for generating more returns than what they receive from non-compounding ETH staking.