Cake DeFi, a Singapore-based DeFi platform, is launching its Ethereum (ETH) staking service for retail and institutional customers.
This move, which Cake DeFi says it provides another crypto on-ramp for those looking to enter the crypto space, comes shortly after the Ethereum network’s long-promised shift from an energy-intensive proof-of-work consensus mechanism to proof of stake.
The ETH staking — a practice of earning rewards for serving as a transaction validator in the Ethereum blockchain — will allow users to enjoy around 5% annual percentage yields in returns. The process involves the users delegating their token holdings to those running the blockchain software in exchange for sharing some profit.
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.
“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.
According to its latest ‘Transparency Report,’ Cake DeFi continued its growth trajectory in the three months through June 2022, even as the entire crypto industry experienced macro challenges this quarter.
The Singapore-based cryptofinance platform said Q2 2022 was yet another strong quarter for its business with each of the protocol’s departments recorded positive growth. In terms of finance, Cake DeFi paid out $58 million in rewards to clients, taking the total payout since inception in 2019 to $375 million. On top of that, the company has seen its strongest quarter yet when it comes to customer growth, funded accounts and payouts.
These metrics were impressive given the second quarter was not all smooth sailing for Cake and the broader crypto industry. They all faced some challenges along the way that threatened to derail its growth amid a prevailing negative market sentiment.
But unlike its competitors Cake was able to generate positive cash flow and still hiring people. Many other firms in the crypto space, including the big names, are cutting staff as the price of pretty much every single cryptocurrency is in the red. Even in the event that revenue would dry up completely, Cake says its treasury provides for at least 4 years of runway.
Cake vowed to leverage the crypto winter to the max and the redundancies seen in other firms could mean that the firm has access to a pool of top talent and new business opportunities.
