With ETH Staking, Cake DeFi has introduced yet another service to unlock the full cash flow potential of your crypto holdings. But that’s not all! It is now possible to unstake and withdraw previously staked ETH in just a few clicks with Cake DeFi's easy step-by-step process.
The ability to sell or withdraw staked ETH will be available to all Cake DeFi customers beginning 22 November 2022 at 2pm SGT (6am UTC). You can access the service on both Cake DeFi’s web and mobile app.
How do I exit a staked ETH position?
The current problem with staking ETH on many exchanges and platforms is that staked ETH cannot be unstaked or retrieved via the Ethereum network until the completion of the Shanghai upgrade in 2023 at the earliest. As a result, stakers are not able to unstake and sell their ETH freely, which greatly increases an investor’s risks. Fortunately, Cake DeFi offers a solution where you can stake your ETH while maintaining some level of liquidity.
This feature will give ETH Staking customers the ability to exit their staked positions via an open market built on the DeFiChain DEX through tradeable csETH (cake staked ETH). A csETH is a DeFiChain Standard Token that represents ETH locked up in the Staking nodes, and stipulates a user's right to redeem staked ETH on Cake DeFi. The csETH-ETH liquidity pool facilitates the withdrawal or sale of staked ETH on the DeFiChain DEX and can be transparently tracked on DeFi Scan.
In order to exit a staked ETH position, Cake DeFi offers the following two options:
- Exit back to ETH
This is the most user-friendly option to exit your staked ETH position. As with any other DEX swap, you will be shown the conversion rate via the DeFiChain DEX during the swap process. As soon as the swap is complete, the ETH will be transferred back to your Cake DeFi account at the current conversion rate minus a 0.5% DEX fee, which goes to the liquidity miners.
- Exit back to csETH
This option is for advanced users who want to exit their staked ETH position and receive csETH in return, which they can then withdraw to a DeFiChain address. These withdrawn csETH do not receive any rewards; only csETH staked on Cake qualify for rewards. In addition, advanced users can withdraw csETH to liquidity mine ETH on DeFiChain and receive a 0.5% liquidity mining fee.
How do you deposit csETH?
csETH can be purchased directly on the DeFiChain DEX and transferred to a Cake DeFi account, where it shows up directly on the balance page together with a deposit address. Do note that csETH is automatically staked when it's sent to a Cake DeFi account. There are no idle csETH on the Cake DeFi platform.
Eventually, Cake DeFi plans to make csETH available on other blockchains, such as Ethereum (Uniswap). As a result, cake-staked ETH will be available to a broader DeFi user base, and will also allow for more liquidity to flow into csETH.
How unstaking is done on Cake DeFi
A step-by-step tutorial on how to exit staked ETH can be found in the following infographic.
The Cake DeFi ETH Staking product is not only one of the most lucrative and transparent ways to earn passive income from your ETH holdings, but also allows you to withdraw staked ETH via an open market through the DeFiChain DEX. If you have idle ETH lying around, then you should consider investing them in our Staking product in just three simple steps. You can also find more info in our previous blog post or you can check out our FAQs.