Cake DeFi Is Now Offering Ethereum Staking With 5% Returns

DeFi platforms have been quick to catch up with the waves that Ethereum is making with its newest announcement. The latest upgrade, better known as the Merge, was easily their boldest one yet, since it aimed to eliminate the biggest problem that people have with cryptocurrencies, power consumption.

Not only does Merge manage to solve the major problem that has been plaguing cryptocurrencies for a long time is their power consumption. Since mining remains one of the primary ways for people to get cryptocurrencies, they prefer it regardless of the serious environmental costs that come with it.

Mining can take up a lot of electricity, which is what gives it a total carbon footprint equivalent to that of a country. But with the Merge update recently coming out, Ethereum will be able to cut down its footprint by at least 90%.

The Rise of Ethereum Staking

While plenty of cryptocurrencies still struggling to find a way to cut down their carbon emissions without sacrificing mining, Ether went the opposite direction, as it completely changed its direction to focus on staking rather than mining.

With even fewer investors now focusing on mining, the carbon footprint of Ethereum has reduced significantly. In fact, staking alone makes ether the greenest cryptocurrency available, which is why various DeFi platforms are taking such an interest in it.

The latest of the DeFi platforms to take on staking is Cake, which will allow people to get a 5% staking yield on Ether through Singapore-based nodes. Therefore, it is no longer a proof-of-work system but is instead a proof-of-stake system.

Bringing in even more Ether without the Carbon Emissions

Staking is a process that involves validators or nodes to stake their crypto into a deposit contract. The purpose of a long-term contract is that it will lock investors ether into the blockchain, and validate various other transactions. This process can help bring in even more Ethereum without relying on mining.

However, unstaking is still a feature that needs to be added to Ethereum, since it can drastically change how investors interact with a DeFi service. Many are speculating that the Shanghai upgrade will allow people to stake their Ether accordingly, or unstake it as they see fit. This upgrade might come out sometime during the next year.

What does the Cake do Different

Unlike other DeFi platforms, Cake will also offer its users a 5% annual return on their yields. The returns that individuals receive will be auto-compounded twice every day. Therefore, by the end of the year, users can get a much higher return through ETH staking.

While users still cannot use the unstake feature, they can instead unstake their crypto using a trading tradeable that is also on the open market.