In mid-September 2022, most-anticipated Ethereum merge took place and ETH has transitioned from a proof-of-work to a proof-of-stake system. As a result, the "Beacon Chain" was merged into the Ethereum main chain, which requires nodes, or validators, to stake their cryptocurrency into a long-term deposit contract. Cake DeFi, the leading, fastest-growing Singapore-based fintech firm providing easy access to Decentralised Finance (DeFi), has launched its latest feature – Ethereum Staking – with the added access to liquidity via a tradable token which can be sold in the open market.

"ETH Staking is the latest addition to our popular Staking service. We made a deliberate decision to host our own nodes in Singapore. Now, 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.

Ethereum staking and how does it work?

The Proof-of-Stake powered blockchain is unlike Proof-of-Work, it bundles 32 blocks of transactions during each round of validation, lasting 6.5 minutes on average. These bundles of blocks are called epochs. When blockchain adds two or more to when an epoch is finalized that particular transaction is irreversible.

While validating the process, the Beacon Chain groups into committees in a random manner of 128 and then assigns a particular shard block. In this process, each committee is given some time to propose new blocks and to validate the transactions called slots. When taking an epoch, 32 slots in each epoch means 32 committees are also required to validate the process.

After the committee is assigned a block, one random member of the group is permitted to propose a new block of transactions and the other 127 members vote on the proposal to the transactions. Later when the majority of the committee has attested the new block then it is added to the blockchain by creating a cross-link to confirm its insertion. Only then the staker chosen to propose will receive their reward.

Are you now wondering how to stake Ethereum to make profits?

The rewards achieved by the stakers count and depend on the total number of ETH staked and the number of validators on the network. The annual interest rate increases when the pool of staked ETH dips. When the pool of stakers is large to promote a decentralized ecosystem, the interest rate drops or decreases. Ethereum staking can open new opportunities for the blockchain ecosystem by making Ethereum a more friendly network. It also adds value by giving the Ethereum staking rewards.

Cake DeFi's ETH Staking will allow users to enjoy around 5% annual percentage yields in returns. Returns in Cake DeFi's ETH staking will also be auto-compounded every 12 hours to generate significantly more returns compared to non-compounding ETH staking. 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.

Amazing Product Range

Cake DeFi offers three key products: Liquidity mining, Lending, and staking. The other two products are Freezer and the recently-launched Borrow.

• Staking: The Staking product allows users to help secure blockchains and earn rewards. You can stake DFI (DeFiChain's native token) and DASH tokens in fully transparent masternode pools on Cake to earn an APY of up to 28.5%. Users don't need to set up a masternode themselves, significantly lowering the barriers to entry for crypto staking.
• Liquidity Mining: You can provide liquidity in a decentralized exchange to enable trades between two different token pairs to earn annual returns of up to 45.4%. You can see all the Liquidity Mining pairs here.
• Borrow: Allows users to borrow Decentralized USD (DUSD) minted on the DeFiChain blockchain by simply adding Bitcoin, Ethereum, Tether, USDC, and DFI as collateral. You can pledge a combination of these assets, provided that 50% of the entire collateral is in the form of a DFI token. Use the borrowed tokens to earn attractive rewards via staking, lending, and liquidity mining. It reduces the selling pressure because the borrowed DUSD can be used to purchase items or invest in products that generate passive income. You don't have to sell your BTC, ETH, etc. to access liquidity. Moreover, Cake DeFi lets you convert the borrowed DUSD to USDC and DFI for free.
• Lending: Cake lets you lend your cryptocurrencies like Bitcoin, Ethereum, USDT, USDC, and others at up to 6.5% APY.
• Freezer: It locks up the allocated funds for 2x the rewards, for up to 10 years. It rewards long-term platform supporters and incentivizes users to remain part of the Cake DeFi ecosystem.

You can find an in-depth overview of the products here: https://blog.cakedefi.com/cakedefiinfoguide/

About Cake DeFi

Cake DeFi is a fully transparent, highly innovative fintech platform dedicated to providing access to decentralized financial services and applications by enabling users to generate returns from their crypto and digital assets. It is operated and registered in Singapore and is subject to applicable laws and regulations in Singapore.

By enabling and empowering its users to harness the potential of DeFi, Cake DeFi aims to educate and inform people around the world on crypto and Defi in a simple, easy-to-understand, and hassle-free manner.

Cake is an FATF compliant fintech platform with strong financials. It also recently became a member of the Coinbase TRUST to comply with the Travel Rule requirements while protecting the security and privacy of customers

The platform has been cash flow positive with a runway of at least four years. As a Singapore-based fintech company, it ensures clear asset segregation whereby customers' assets are kept separate from the company's operating accounts. It means users have full control, full ownership, and full authority over their funds. Cake DeFi simply acts as an agent or an intermediary for the services that it provides, giving users a "safe passage" or access to decentralized finance (DeFi) services: these services are all on the DeFiChain blockchain and are fully accessible to anyone and fully transparent. Technically, customers can make such transactions on the blockchain themselves. What Cake DeFi offers is a one-stop platform where people can access all these services at a single point with customer and community support. This is in stark contrast to other CeFi platforms such as Celsius- which can arguably be likened to a "black box" with limited transparency. As such, users wouldn't have clarity or information on things like where the yields are being derived from or – worse – if their funds are being commingled with operational funds.