By
Steve Muchoki
April 24th, 2024
According to the report, users would gain up to 5% in annual percentage yield in return on their ETH staking.
Cake Defi, a fintech firm based in Singapore has finally launched its Ethereum Staking. According to the report, there is added access to liquidity through a tradable token that can be traded on the open market. This has been confirmed by Dr. Julian Hosp, Co-Founder, and CEO of Cake Defi.
“ETH Staking is the latest addition to our popular Staking service. We made a deliberate decision to host our nodes in Singapore. At the moment, Ethereum nodes are mostly concentrated in North America and Europe. Hosting our Singapore-based nodes will boost the confidence of investors and developers in the region and support the spirit of decentralization,” he said.
According to the report, users would gain up to 5% in annual percentage yield in return on their ETH staking. Also, the returns would be auto-compounded unlike Qumas Ai.
Ethereum merge, one of the biggest upgrades in blockchain history, was launched with a network transitioning from the “Proof of Work” to the “Proof of Stake” algorithm. In this case, nodes or validators are required to stake their cryptocurrencies in a long-term contract due to the Beacon chain which was merged into the Ethereum main chain. Investors are, therefore, provided with the opportunity to lock up their ETH to stand a chance of validating transactions and earning more of the assets. Unfortunately, unstaking is not supported by the Ethereum network. Investors would, therefore, have to wait for a year or more for the Shanghai upgrade to unstake their ETH.
Cake Defi finds it appropriate to provide liquidity, and without waiting for the Shanghai upgrade, users would be able to unstake their ETH through a token tradable on the open market.
“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 Hosp.
Cake Defi has based on its recent report recorded over 1 million customers and issued about US$375 million in customer rewards as of the end of Q2 2022.
Reports have estimated that Lido, Coinbase, Kraken, and Binance control half of the stake on the Ethereum PoS network. This has made the Ethereum network highly centralized considering that most of its nodes are based in Europe and the US.